The new guide lacks data and country specific information including urgent problems facing businesses in Turkmenistan.
The International Trade Center (ITC), a joint agency of the UN and WTO, provides support to developing countries with trade-related advisory services, capacity building, training and mentoring. ITC developed a 16-page guide titled “What does joining the WTO mean for me?”. It has been published in three languages on the website of the Ministry of Finance and Economy of Turkmenistan.
The guidebook was funded by the EU. It targets businesses and business associations in Turkmenistan, helping them understand how WTO rules can impact their operations, create new opportunities, and affect domestic trade policies.
However, the content lacks specific data on Turkmenistan and it follows a template providing generic information for countries aspiring to join the WTO. Notably, Turkmenistan is absent in examples or references throughout the document’s 16 pages, and some grammatical issues are evident in the Turkmen translation. The publications and activities of the International Trade Center in Uzbekistan, which is also aspiring to join the WTO, are more detailed, country-specific and tailored to its unique needs.
General information
The guide offers insight into the WTO’s role and benefits for member countries, emphasizing the following areas:
- Trade Diversification: The WTO framework is designed to help countries diversify their exports, facilitating the introduction of new products in new markets.
- Development of Pro-Growth Policies: By aligning with WTO principles, member countries are positioned to modernize their service sectors and attract foreign investment.
- Dispute Settlement Rights: Members gain access to WTO’s dispute resolution mechanism, which helps protect smaller companies in trade conflicts with larger partners.
- Protection of Intellectual Property: protection of IP in patents and industrial designs allows businesses to obtain a reward for their ingenuity and creativity.
Call to Action for Businesses
Though WTO negotiations are managed at the intergovernmental level, the private sector has a role in maximizing the benefits of accession. The guide encourages Turkmen businesses to participate actively in national trade policy discussions without providing any contact and guidance information.
Recommended actions include:
- Data Provision: Sharing information on the impacts of trade liberalization to inform policy decisions.
- Engagement in Country Branding: Assisting in rebranding efforts to highlight Turkmenistan’s strengths for foreign investors.
- Participation in Global Trade Dialogues: Contributing to global discussions on emerging issues such as sustainability and digital trade.
Missing Q&A
The guide lacks information on realities and challenges that businesses in Turkmenistan face and their priority issues:
- Sector-Specific Guidance: Information on sectors crucial to Turkmenistan’s economy, like energy and textiles, is notably missing.
- Transition Risks and Short-Term Challenges: The document does not address potential immediate challenges for local businesses facing increased foreign competition due to trade liberalization.
- Dual Exchange Rate System: The guide omits mention of Turkmenistan’s dual exchange rate, which hampers entrepreneurs from conducting foreign trade due to restrictions on currency transactions.
- Corruption and Bureaucratic Hurdles: The guide overlooks corruption and bureaucratic obstacles in licensing, documentation, and customs, which hinder foreign trade by increasing costs, a key challenge to Turkmenistan’s global trade integration.
- Foreign Direct Investment (FDI): The guide fails to address the challenges surrounding FDI in Turkmenistan, where endemic corruption, weak legal protections, strict currency controls, and an inconsistent regulatory regime deter foreign investors.
In summary, the guidebook offers a basic overview of WTO membership but falls short as a practical guide for businesses in Turkmenistan, lacking tailored insights and appearing more like a generic template than a resource specifically designed to support the country’s unique economic needs.
