Iran and WTO
Encyclopedia
Iran
officially submitted an application to join the World Trade Organization
(WTO) on 19 July 1996. From July 1996 to May 2001, Iran’s application had not been considered, mainly as a result of US
objections and the US veto power in the WTO Council. From May 2001 Iran’s application for WTO membership has been brought up 22 times. At the 22nd time, on 26 May 2005, Iran’s application for WTO membership was approved unanimously by the organization’s members (and thus by the United States and Israel as a goodwill gesture so as to ease the nuclear negotiations between Iran and the international community).Thus the process of Iran’s membership in the WTO started. Once Iran’s application was accepted and examined by WTO General Council, Iran became WTO observer member and started the process of full membership in the organization. In November 2009 Iran submitted the Foreign Trade Regime Memorandum as the process of accession entered a new phase.
is in charge of managing the process of accession to the WTO.
has an observer status at the World Trade Organization
(WTO) since 2005. The United States has consistently blocked Iran's bid to join the WTO since Tehran first asked for membership several years ago. Iran has allocated $20 billion in loans to launch 20 trade centers in other countries.
is hoping to attract billions of dollars worth of foreign investment
while creating a more favorable investment climate, such as reduced restrictions and duties on imports and the creation of free trade zone
s like in Qeshm
, Chabahar
and Kish Island.
, as well as its control of a shadow economy. But there are also arguments that the IRGC should harness, rather than resist, globalization
, with the question of World Trade Organization accession emerging as a key point of debate in Iran.
, endorsing the free distribution of unlicensed software in massive quantities. Linux
, freely reproducible even in countries with strong Intellectual Property
(IP) laws, is also growing in popularity within Iran, however.
Iran may change this status if and when it becomes a full member of WTO, as WTO members are encouraged to abide by WTO copyright regulations
. However, the United States
has previously vetoed Iran's ascension to the WTO 22 times, and actively refuses to support Iran's full membership in the WTO. Thus, as a matter of reciprocity
, Iran has determined that its interests are not served by observing WTO copyright treaties, and has thus exercised its sovereign right
not to alter its laws, thereby making certain foreign copyrights unenforced by Iranian authorities, in theory, or in practice. Yet, if Iran does eventually gain membership status in the WTO, among other prerequisites, copyright law
s will have to be obeyed in Iran. This would require a major overhaul of business and trade operations in Iran, a change which many experts believe would be a price too heavy for Iran's economy to pay at the present time.
Iranian pharmaceutical manufacturers are disadvantaged by the government's poor intellectual property protection regime. Developing a molecule for combination therapies may qualify for patent protection in other countries. However, while weak patent law adherence continues in Iran, it is expected this will create significant barriers for Iranian companies prospecting trade on the global market.
Iran
Iran , officially the Islamic Republic of Iran , is a country in Southern and Western Asia. The name "Iran" has been in use natively since the Sassanian era and came into use internationally in 1935, before which the country was known to the Western world as Persia...
officially submitted an application to join the World Trade Organization
World Trade Organization
The World Trade Organization is an organization that intends to supervise and liberalize international trade. The organization officially commenced on January 1, 1995 under the Marrakech Agreement, replacing the General Agreement on Tariffs and Trade , which commenced in 1948...
(WTO) on 19 July 1996. From July 1996 to May 2001, Iran’s application had not been considered, mainly as a result of US
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
objections and the US veto power in the WTO Council. From May 2001 Iran’s application for WTO membership has been brought up 22 times. At the 22nd time, on 26 May 2005, Iran’s application for WTO membership was approved unanimously by the organization’s members (and thus by the United States and Israel as a goodwill gesture so as to ease the nuclear negotiations between Iran and the international community).Thus the process of Iran’s membership in the WTO started. Once Iran’s application was accepted and examined by WTO General Council, Iran became WTO observer member and started the process of full membership in the organization. In November 2009 Iran submitted the Foreign Trade Regime Memorandum as the process of accession entered a new phase.
Status of accession working party
The Ministry of CommerceMinistry of Commerce (Iran)
The Ministry of Commerce of Iran was the main organ of the Government in charge of the regulation and implementation of policies applicable to domestic and foreign trade...
is in charge of managing the process of accession to the WTO.
| WTO accession step - Iran | Date |
|---|---|
| 1. Application Received | 19 July 1996 |
| 2. Working Party Established | 26 May 2005 |
| 3. Memorandum | 24 November 2009 |
| 4. Questions and Replies | |
| 5. Meetings of the Working Party | |
| 6. Recently submitted documentation | |
| 7. Market Access Negotiations | |
| 8. Factual Summary | |
| 9. Draft Working Party Report |
Economic Reform
IranIran
Iran , officially the Islamic Republic of Iran , is a country in Southern and Western Asia. The name "Iran" has been in use natively since the Sassanian era and came into use internationally in 1935, before which the country was known to the Western world as Persia...
has an observer status at the World Trade Organization
World Trade Organization
The World Trade Organization is an organization that intends to supervise and liberalize international trade. The organization officially commenced on January 1, 1995 under the Marrakech Agreement, replacing the General Agreement on Tariffs and Trade , which commenced in 1948...
(WTO) since 2005. The United States has consistently blocked Iran's bid to join the WTO since Tehran first asked for membership several years ago. Iran has allocated $20 billion in loans to launch 20 trade centers in other countries.
Free trade zones
IranIran
Iran , officially the Islamic Republic of Iran , is a country in Southern and Western Asia. The name "Iran" has been in use natively since the Sassanian era and came into use internationally in 1935, before which the country was known to the Western world as Persia...
is hoping to attract billions of dollars worth of foreign investment
Foreign Direct Investment in Iran
Foreign direct investment in Iran has been hindered by unfavorable or complex operating requirements and by international sanctions, although in the early 2000s the Iranian government liberalized investment regulations. Iran ranks 62nd in the World Economic Forum's 2011 analysis of the global...
while creating a more favorable investment climate, such as reduced restrictions and duties on imports and the creation of free trade zone
Free trade zone
A free trade zone or export processing zone , also called foreign-trade zone, formerly free port is an area within which goods may be landed, handled, manufactured or reconfigured, and reexported without the intervention of the customs authorities...
s like in Qeshm
Qeshm
Qeshm Qeshm Qeshm (Persian: قشم - pronounced kē´shm is an Iranian island situated in the Strait of Hormuz, and separated from the mainland by the Clarence Strait/Khuran in the Persian Gulf .-Geography:...
, Chabahar
Chabahar Free Trade-Industrial Zone
Chabahar Free Trade–Industrial Zone is an Iranian free trade zone formed according to the law on the establishment and administration of free trade–industrial zones ....
and Kish Island.
IRGC
The lack of financial transparency and accountability into Iran’s inner economic workings empowers and supports the IRGC’s many illicit activitiesControversies surrounding Army of the Guardians of the Islamic Revolution
Since the establishment of Army of the Guardians of the Islamic Revolution , the organization was involved in many economic and military activities and some of them were subject to controversies.-Human Rights Abuses:...
, as well as its control of a shadow economy. But there are also arguments that the IRGC should harness, rather than resist, globalization
Globalization
Globalization refers to the increasingly global relationships of culture, people and economic activity. Most often, it refers to economics: the global distribution of the production of goods and services, through reduction of barriers to international trade such as tariffs, export fees, and import...
, with the question of World Trade Organization accession emerging as a key point of debate in Iran.
WTO copyright laws
Iran's government has not agreed to be bound by WTO copyright lawsAgreement on Trade-Related Aspects of Intellectual Property Rights
The Agreement on Trade Related Aspects of Intellectual Property Rights is an international agreement administered by the World Trade Organization that sets down minimum standards for many forms of intellectual property regulation as applied to nationals of other WTO Members...
, endorsing the free distribution of unlicensed software in massive quantities. Linux
Linux
Linux is a Unix-like computer operating system assembled under the model of free and open source software development and distribution. The defining component of any Linux system is the Linux kernel, an operating system kernel first released October 5, 1991 by Linus Torvalds...
, freely reproducible even in countries with strong Intellectual Property
Intellectual property
Intellectual property is a term referring to a number of distinct types of creations of the mind for which a set of exclusive rights are recognized—and the corresponding fields of law...
(IP) laws, is also growing in popularity within Iran, however.
Iran may change this status if and when it becomes a full member of WTO, as WTO members are encouraged to abide by WTO copyright regulations
Agreement on Trade-Related Aspects of Intellectual Property Rights
The Agreement on Trade Related Aspects of Intellectual Property Rights is an international agreement administered by the World Trade Organization that sets down minimum standards for many forms of intellectual property regulation as applied to nationals of other WTO Members...
. However, the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
has previously vetoed Iran's ascension to the WTO 22 times, and actively refuses to support Iran's full membership in the WTO. Thus, as a matter of reciprocity
Reciprocity (international relations)
In international relations and treaties, the principle of reciprocity states that favours, benefits, or penalties that are granted by one state to the citizens or legal entities of another, should be returned in kind....
, Iran has determined that its interests are not served by observing WTO copyright treaties, and has thus exercised its sovereign right
National sovereignty
National sovereignty is the doctrine that sovereignty belongs to and derives from the nation, an abstract entity normally linked to a physical territory and its past, present, and future citizens. It is an ideological concept or doctrine derived from liberal political theory...
not to alter its laws, thereby making certain foreign copyrights unenforced by Iranian authorities, in theory, or in practice. Yet, if Iran does eventually gain membership status in the WTO, among other prerequisites, copyright law
Iran and copyright issues
According to Circular 38a of the U.S. Copyright Office, Iran has no official copyright relations whatsoever with the United States.Published works originating in Iran thus are not copyrighted in the United States, regardless of the local copyright laws of these countries. See 17 U.S.C. § 104,...
s will have to be obeyed in Iran. This would require a major overhaul of business and trade operations in Iran, a change which many experts believe would be a price too heavy for Iran's economy to pay at the present time.
Iranian pharmaceutical manufacturers are disadvantaged by the government's poor intellectual property protection regime. Developing a molecule for combination therapies may qualify for patent protection in other countries. However, while weak patent law adherence continues in Iran, it is expected this will create significant barriers for Iranian companies prospecting trade on the global market.
See also
- Economy of IranEconomy of IranThe economy of Iran is the eighteenth largest in the world by purchasing power parity and according to Iranian officials' claims is going to become the 12th largest by 2015. The economy of Iran is a mixed and transition economy with a large public sector and some 50% of the economy centrally planned...
- Labor and tax laws in Iran
- Privatization in IranPrivatization in IranAccording to the Fourth Five-Year Economic Development Plan , the Privatization Organization of Iran affiliated to the Ministry of Economic Affairs and Finance is in charge of setting prices and ceding shares to the general public and on the Tehran Stock Exchange...
- Iranian Economic Reform PlanIranian Economic Reform PlanThe Iranian targeted subsidy plan also known as the subsidy reform plan was passed by the Iranian Parliament on January 5, 2010. The government has described the subsidy plan as the "biggest surgery" to the nation's economy in half a century and "one of the most important undertakings in Iran's...
- Intellectual property in IranIntellectual property in IranIran is a member of the WIPO since 2001 and has acceded to several WIPO intellectual-property treaties. Iran joined the Convention for the Protection of Industrial Property in 1959. In December 2003 Iran became a party to the Madrid Agreement and the Madrid Protocol for the International...
- Foreign Direct Investment in IranForeign Direct Investment in IranForeign direct investment in Iran has been hindered by unfavorable or complex operating requirements and by international sanctions, although in the early 2000s the Iranian government liberalized investment regulations. Iran ranks 62nd in the World Economic Forum's 2011 analysis of the global...
- International rankings of Iran
- Iran Chamber of Commerce Industries and MinesIran Chamber of Commerce Industries and MinesThe Iran Chamber of Commerce, Industries and Mines is a non-profit semi-governmental institution, established to facilitate economic growth and development in the country. ICCIM is a forum in the field of industries, mines and agriculture...
- World Trade Organization accession and membership
- Middle East economic integrationMiddle East economic integrationMiddle East economic integration has been envisioned, proposed or implemented by various parties in recent history.The stated rationale is that peace, stability and prosperity in the Middle East can only be sustained over the long-run through intra-regional economic cooperation.Governance,...
- Economic Cooperation OrganizationEconomic Cooperation OrganizationThe Economic Cooperation Organization is an intergovernmental organization involving seven Asian and three Eurasian nations, part of the South-central Asian Union. It provides a platform to discuss ways to improve development and promote trade, and investment opportunities. The ECO is an ad hoc...
- List of Iranian companies
- Group of 15Group of 15The Group of 15 was established at the Ninth Non-Aligned Movement Summit Meeting in Belgrade, Yugoslavia in September 1989.This informal forum was set up to foster cooperation and provide input for other international groups, such as the World Trade Organization and the Group of Eight...
- Organisation of Islamic Cooperation (OIC)
- Indian Ocean Rim Association for Regional CooperationIndian Ocean Rim Association for Regional CooperationThe Indian Ocean Rim-Association for Regional Cooperation , initially known as the Indian Ocean Rim Initiative, is an international organization with 18 member states...
- International tradeInternational tradeInternational trade is the exchange of capital, goods, and services across international borders or territories. In most countries, such trade represents a significant share of gross domestic product...
- Iran-United States relations
- South-South CooperationSouth-South CooperationSouth-South Cooperation is a term historically used by policymakers and academics to describe the exchange of resources, technology, and knowledge between developing countries, also known as countries of the global South.- History :...
External links
- WTO accession status - Iran
- Memorandum of the foreign trade regime of Iran (145-page document describing all aspects of Iran's trade and economic policies that have a bearing on WTO agreements, including the lists of trade agreements and preferences exchanged between Iran and other countries)
- Australian Trade: Doing Business in Iran in 2006 - Many practical information and sector specific reports, with useful websites and resources (login required for sector reports)
- Iran and Accession to WTO
- Trade Promotion Organization of Iran - affiliated to the Ministry of Commerce (Iran)Ministry of Commerce (Iran)The Ministry of Commerce of Iran was the main organ of the Government in charge of the regulation and implementation of policies applicable to domestic and foreign trade...
- Challenges of Iran's agriculture sector in accession Process to the WTO - Omid Gilanpour (2006)