Page 60 - Azerbaijan State University of Economics

THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.71, # 2, 2014, pp. 42-65

Goal of law. The protection of home market and domestic producers from import of

products, production of which is subsidized, what is a direct violation of principles of fair

competition and runs adverse to WTO's requirements.

Content of law. The law must stipulate mechanism for analysis and investigation on

damage, caused to national sectors from import of goods; co-relation between subsidized import

and claimed damage.

The compensating measures may last 5 years. But under resuming damage, their period

may be prolonged. This law must stipulate the following subsidies, available within WTI:

 assistance for research assistance to poor regions through general regional development;

 assistance for adoption of existing infrastructure with new environmental requirements;

 WTO permits to apply the following subsidies, being of great importance for

Azerbaijan. Within these subsidies, the Government of Azerbaijan may help agrarian producers

(indirect assistance).

4). Law "Quality and security of foodstuff and raw material".

I. The law must stipulate national system of quality and security, based upon scientific

standards; requirements to packing and marking; sanitary-hygienic norms, ecological and

biological normative. The law must stipulate mechanism to prove need in protection of

consumers.

II. The studies showed farms are vulnerable and risk from annual climate catalysts is

high. Taking into account low commercial attractiveness of insurance on agrarian risks from

poor harvest, it is important to amend the law "Stimulation of insurance on farms". Particularly,

it is offered to draw in mechanism for 50%budget subsidizing of insurance.

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