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UZWS4V40M Dissertation

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UZWS4V40M Dissertation

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Course Code: UZWS4V40M
University: University Of The West Of England

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Country: United Kingdom

Question:
Dissertation Title: Why negotiations between WTO and some countries (Kazakhstan and Serbia) still haven’t reached an agreement?
Answer:
Introduction:

The commencement of the world trade organization has been done in the year 1995 and thus it is regarded as one of the most recent international organizations. The organization came to existence form the General Agreement on Tariffs and Trade [GATT] and it provides for free and fair trade flow around the world through conducting negotiations based on pre-established rules and regulations (Nestorov-Bizonj, Kovljeni? and Erdelji 2015). The primary focus of the organization in relation to the trade review policy is to enhance the transparency and evaluating the policy impact. Another function which is carried out by the organization is Dispute settlement Understanding which makes sure that trade is smoothly and freely carried out. Six essential procedures have to be carried out for the purpose of becoming a member of the WTO. The first of the procedures is to make an application which would be subjected to review by a working party such as any member of the WTO, UN, IMF or the World Bank. The next step is in relation to the submission of a Memorandum of the Foreign Trade Regime, having date in about the trade policies and economy of the country. The next steps involve setting out terms and conditions after certain discussions and negotiations which the observers will comply with prior to becoming members (?uki?, Tomaš-Simin and Glavaš-Trbic 2018). Bilateral trade agreements along with the country of choice has to be negotiated by the observer in the next step, the agreement reduces, sets and removes tariffs of the markets of the countries. The next steps includes the drafting of the membership terms by the working parties, which involves alternations made by the observers in relation to trade policies, commitments lists created through participants and the bilateral agreement terms (Perišin, 2015). The final steps includes the approval provided by the general council approving the protocol of accession which has to be ratified in a three month period by the applicant and after one month of ratification the country becomes the member. This paper provides a brief discussion about advantages which comes along with the WTO and the way in which fair and free trade is ensured by it in the world.  The paper limits its analysis to the causes which leads to the prolong negotiations that is being held between Serbia and Kazakhstan which has restrained the countries from becoming WTO members. The research also provides a discussion in relation to the implications of the membership of the countries to the organization. The delay which has been caused to Serbia with respect to joining the WTO was primarily both multilateral and bilateral agreements and a lack of proper negotiation being carried out in relation to them. This is the main reason which is still hindering Serbia from joining the WTO however negations have accelerated recently. On the other hand when compared to Kazakhstan there problems were also present for them but they were able to effectively negotiate and join the WTO. The long process of accession is also a reason which delayed both the countries from joining the WTO.
Scope of the research 
The scope of the research is in relation to the significance of the organization towards assurance of fair and free flow of trade around the world. The research also aims to identify the benefits which are provided to the members of the WTO through the organization. In relation to its primary objective the research focuses on only two countries which are Kazakhstan and Serbia who are not still the members of the organization and the causes which are restraining the countries form joining the organization and falling under its protection to enjoy free trade. Although the organization has been joined by Kazakhstan, Serbia has an uncertain position in the international trade community as it is not yet a member of the organization and only is considered as an observer country. The research explains the reasons, factors and grounds which almost made Kazakhstan 20 years to become the member of the organization and Serbia is still in the process of negotiation (Cardiff 2017).
The Rationale of the Research 
The primary rational of this research paper is to analyze and discuss the importance of becoming the member of the WTO along with the position of the countries with respect to international trade community.  Serbia has still not become the member of the organization and has been altering its environment and political economy since the republic of Serbia had been formed. However such alterations do not only have the purpose of complying with the standards of the WTO but also positioning itself well in the international trade community. Kazakhstan on the other hand has indulged in constant negotiation about its terms with the organization for about 20 years from now and have recently become the member after reach the agreement in the year 2015. The research elucidates the factors and reasons which have caused the delay for Kazakhstan and still preventing Serbia form being a part of the organization. As stated by Chin, Rusli and Khusyairi (2015) all the nations which are about to become the members of the organization see it a very valuable position and expect to gain a significant rise in trade position through it. However it has been argued by Michalopoulos (2014) that after the nations gave become a part of the organization they suffer a setback in relation to the expectations. This is because they are not able to enjoy unlimited access to market as soon as they have becomes members of the organization. Although the main expectations which the new members have form the organization is to have access to markets free is not satisfied, there are few members who are able to observe enhancement in relation to their economy. There is also realization on the part of the members at the same time that the accession costs have been underestimated by them which are related to compliance for those counties not having strong potentials towards bureaucracy. These nations find it difficult to coup up with the cost and ensure payments for compliance (Nagy 2015).
With respect to the second question of research there have been bilateral as well as multilateral factors which have resulted in the delay of Serbia to join the organization. The integration of the country into the European Union acts as one of the hindrances as it is the part of one of the primary foreign policy of the country. On the other hand joining the WTO as a member is one of the main compliance criteria of becoming an EU member.   Therefore the first accession cannot be carried out without observing the second accession. As the accessions are interconnected they will save the country time if pursued together. However such delay results out of multilateral and bilateral treaties such as the treaty with Ukraine.  It is also to be noted that Kazakhstan had been under constant negotiations with the organization and several issues had delayed the joining of the country as the WTO member. Few of such issues include tariff fixing between the country and EEU as well as bilateral commitments with Russia. These issues have been discussed in details in this paper (Kuzman, Stegi? and Puškari? 2016).
Research Aims and Objectives 
The aims and objectives for this research are as follows:

To understand the benefits associated with WTO that are enjoyed by the Member States;
To assess the factors that have attributed to the delay in case of Serbia and Kazakhstan from becoming a WTO Member;

Research Questions 
The research questions for the research paper are as follows:

What are the benefits associated with WTO that it provides to its Member states?
What are the factors that had prohibited Serbia and Kazakhstan from becoming a member to WTO?

The research has been carried out in five chapters namely Introduction, Literature review, Research Methodology, Data Analysis and Conclusion & Recommendations. Introduction contains details about background of research, research questions, research objectives and research rationale. Literature review contains review of several secondary sources related to the research topic. Research Methodology contains details about the way in which research has been conducted such as the research design, data collection method, research ethics and limitation of research. Data analysis chapter analyzes the data collected to identify the findings. The conclusion and recommendations states the findings and ways to resolve the issue.
The World Trade Organization is the only organization of the world which is concerned with guidelines and rules related to trade relations between different countries. The core of the organization is the agreements which have been signed after being negotiated by most of the countries indulging in world trade (Stankovi? and Vignjevi?-?or?evi? 2017). The primary objective of the organization is to provide assistance to those nations indulging in the production of goods and services and those who indulge in importers and exporters to conduct their business. According to Troši? (2017) there are various ways in which a person may interpret the WTO. One of the interpretations is that it has been formed for the purpose of opening up trade. It has also been interpreted as a platform for settling trade disputes. A system of trade rules is operated by the organization. One of the interpretations also states that WTO is a platform on which the member countries attempt to eradicate the trade related issues which arises in relation to each other (Kampf 2015). The organization is run by its member governments. All the significant decisions of the organization are taken by the majority of the members which involves the ambassadors, ministers or delegates. The agreements which are involved in the organization are complex and lengthy and are legal documents which cover broad range of functions. However there are a few simple and basic functions which are a part of such documents. These functions and principles are the basis of the multilateral trading system (Dabovic 2017)..
The advantages of Joining the WTO 
It is the purpose of the organization to make the trading conditions known to all members who indulge in the trading function which results in transparency. This transparency is gained through making it mandatory for the government to provide notifications to the organization and other members countries with respect to particular measurements and carrying out review of the policies if trade of the member countries. The organization provides a foundation for market friendly reforms (?or?evi? 2016). However the organization is often criticized for formulating reforms which are judged as difficult. The commitments provided by the organization are taken as significant policies for small nations as it is required for the purpose of accession to EU. The nature of the agreements and the transparency with respect to the operations plays a significant role for the organization being a policy anchor (Jelisavac-Troši? and Rapai? 2015).
The benefits which are provided by the organization are not directly inherited by the members. These benefits depend on the term, level and timing required to join the organization. One of such examples is that of China which have been preparing to join the institution for 15 years and joined the organization finally in 2001 (Loginova and Mikheeva 2017).  It depicts that sufficient time has been spent by the country to undergo negotiations with respect to the commitment terms but they are still to receive the gains which they have expected in the way of economic growth. Countries like china have arguably faced problems (Zhang, Fung and Changhong 2017). There are several ways through which a country can become a part of the world market. These ways include joining various organizations such as WTO, EU and adopting international conventions such as the CISG. There are also multilateral and bilateral agreements which countries can enter into to be a part of the international trade. These agreements set out guidelines as to which international trade is to be carried out. Thus WTO is a good platform for carrying out world trade.
The process of Accession 
Six essential procedures have to be carried out for the purpose of becoming a member of the WTO. The first of the procedures is to make an application which would be subjected to review by a working party such as any member of the WTO, UN, IMF or the World Bank. The next step is in relation to the submission of a Memorandum of the Foreign Trade Regime, having date in about the trade policies and economy of the country. The next steps involve setting out terms and conditions after certain discussions and negotiations which the observers will comply with prior to becoming members (EDC 2015). Bilateral trade agreements along with the country of choice has to be negotiated by the observer in the next step, the agreement reduces, sets and removes tariffs of the markets of the countries. The next steps includes the drafting of the membership terms by the working parties, which involves alternations made by the observers in relation to trade policies, commitments lists created through participants and the bilateral agreement terms. The final steps includes the approval provided by the general council approving the protocol of accession which has to be ratified in a three month period by the applicant and after one month of ratification the country becomes the member (Radisavljevi?, ?or?evi? and Milovanovi? 2017).
Reasons why Serbia is still not a member of WTO 
The country had carried out bilateral agreements with the EU without being subjected to much considerable issues rather than the issue related to Ukraine. This is one particular issue which is the cause of delay for the country to get to a formal agreement. To add to the agony of Serbia the negotiation power of Ukraine in the WTO is much more than Serbia (Petrovi? and Vesi? 2014). Ukraine had restricted accession of Montenegro for a period of over two years citing an issue related to market accessibility. There has been a demand from Ukraine under which they have made a condition before Serbia to raise all restrictions and tariffs which have been imposed on the import on steel. On the other hand Serbia who also has the interest and intention of protecting its own steel industry are not willing to bow down to the condition. Although Ukraine does not have the power to prevent the association of Serbia for eternity they are still causing a delay in the process (Scalera 2017). More details is further discussed in this chapter. These include Multilateral negotiations and Bilateral negotiations with various countries because of both international and domestic factors. The international factors include not being able to reach an agreement with the different countries such as USA and Ukraine and internal domestic factors like change of government and agenda. 
In March 2013 the 12th working party meeting took place. The issues which had been discussed at the time of plurilateral negotiations includes Sanitary and Phitosanitary  Standards  (SPS), Technical  Barriers  to Trade  (TBT) and agricultural subventions. However most of these issues have been solved recently. There have been so far 1500 issues which have been resolved and been worked upon. Although such issues have been resolved they had consumed a significant amount of time for Serbia which is calculated to be almost seven years. Significant exchange approach changes were led and executed in the space of import standards disposal, custom tenets, decrease of tax and non duty hindrances and numerous others. New laws have been passed the Law on Foreign exchange tasks, on Customs , Food security, Intellectual property rights and numerous others (Upchurch and Marinkovic 2016). It is sure that Serbia is in the last period of the accession. There are just three issues left to be managed Hereditarily Modified Organisms, copyright related issue “muzicki dinar” as it is brought in Serbia and issues on extracts. Simply with the end goal of elucidation, multilateral arrangements are not transactions per se (Qureshi 2015). It is all the more a fastidious examination of the harmonization procedure. Amid this period, a nation needs to facilitate its administrative framework with the WTO’s, viz. various laws, going with rules are to be modified, and new ones passed (Brankov and Milovanovi? 2015.). This system is in fact the centre of the promotion process. Advance depends solely on the hopeful nation and the speed of the changes. Not until the point that each national standard is composed with the WTO’s can the multilateral transactions be closed. Year 2009 was a point of reference for Serbia as the Law on Standardization was passed. The goals of the Law are the change of global exchange, end of superfluous exchange obstructions, headway of the nature of items and administrations, their characterization and similarity and change of the insurance of life and soundness of people, creatures and plants. The Government of Serbia set up the Institute for Standardization as a national institutionalization body keeping in mind the end goal to achieve these objectives. The Establishment will guarantee the consistence of Serbian models with worldwide and European guidelines. What’s more, it will coordinate with the global end EU associations for institutionalization that are signatories of applicable understandings in the region of standardisation (Popovi? and Gruji? 2015).
The issue related to GMO had been a significantly hot topic in the country. The definition of the WTO is that the creation of GMOs is done through the transfer of genetic materials form organism to organism. The process has been given the name of biotechnology or genetic engineering. Exchange problems happen when nations have extraordinary directions on testing and endorsement methodology important to put GMOs available. Another issue is likewise the marking of GMOs and items containing them (Sirohi 2016). Each nation plans to ensure its nationals’ wellbeing furthermore, condition, yet nations don’t concur on a similar strategy. Since Serbia is at the same time taking a shot at increase in the WTO and the EU, I would likewise address the EU’s approach towards GMOs (Tarr 2016). One needs to shoulder as a main priority that the WTO does not request a turnover of GMO items in a specific nation. The request of the WTO is only an organized commerce among its individuals, without obstructions, portions and different sorts of limitations. This guideline too incorporates exchange with GMOs. In any case, the EU has exceptionally strict directions on GMO turnover. Each GMO seed and item is liable to broad, particular, logical nourishment assessment directed by the European Food Safety Authority (EFSA). EFSA than reports to the European Commission what’s more, the EC drafts a proposition on whether to permit or reject the authorisation of a specific GMO question. The normal time for GMO authorisation is 45 months. The European Union permitted exchange on just 48 GMO items. One more certainty that shows how nourishment wellbeing is essential to the EU is that the main GMO seeds allowed for development are potato and corn. Nonetheless, there is a defend condition for the EU part expresses that they can conjure to limit or deny utilize or potentially offer of the GMOs inside their domains (ANDERSON and MüLLER 2017). Up until now, eight nations unequivocally disallowed GMO turnover Austria, Bulgaria, France, Germany, Greece, Hungary, Poland and Luxembourg .In the EU’s assessment, the greatest defender of GMOs is the USA. The greatest GMO related organizations are arranged in the States. The USA’s worry is the EU’s framework. In USA’s perspective, it takes too long to pick up the authorisation of the European Commission. Moreover, they think that a GMO that is announced safe in the States ought not be submitted to extra (EU) investigation. Those items ought to be true sheltered to devour. In addition, the USA is against marking tenets and following guidelines since going before methods are costly. There are no rules within Serbia in relation to the labelling with respect to GMO seeds and the production of food from the GMO’s is not allowed. On the other hand with respect to the standards in the EU which states that if the presence of GMO in a product is not more than 0.9 it is allowed and considered to be safe.
Bilateral negotiations 
According to Kireyev and Osakwe (2017) on bilateral level rather things were very clear with respect to Serbia. Negotiations had been successful with Japan, EU, Norway, Canada, China, Mexico, EU, Panama and Dominican republic. There are also ongoing negotiations which are going on with countries like USA, Ukraine, India and Brazil. The least problematic scenario is with India who have only a very small demand in relation to services which is soon to be addressed by the country. There have been demands related to agriculture products such as sugar and frozen meat. These negotiations have only been pending because there is a wait for passing of law by Serbia which would deal with issues such as GMO (Black and Kireeva 2015).
The primary issue which is being the hindrance for the accession process of Serbia is that which posed by Ukraine. The country had carried out bilateral agreements with the EU without being subjected to much considerable issues rather than the issue related to Ukraine. This is one particular issue which is the cause of delay for the country to get to a formal agreement. To add to the agony of Serbia the negotiation power of Ukraine in the WTO is much more than Serbia. Ukraine had restricted accession of Montenegro for a period of over two years citing an issue related to market accessibility (Konopelko 2018.). There has been a demand from Ukraine under which they have made a condition before Serbia to raise all restrictions and tariffs which have been imposed on the import on steel. On the other hand Serbia who also has the interest and intention of protecting its own steel industry are not willing to bow down to the condition. Although Ukraine does not have the power to prevent the association of Serbia for eternity they are still causing a delay in the process.
Reasons why Kazakhstan delayed in becoming a WTO member
An application has been made by Kazakhstan for the purpose of accession of joining the organization in the year 1996. The application made by the country had been subjected to delay since then and one of the primary reasons in relation to this was the parallel membership of the country in the EEU which also includes countries like Russia, Kyrgyzstan, Belarus and Russia (Meyers 2016). The nation has been a member of the Eurasian Union since 2009 resulting it towards the transformation of significant part of its trade regime according to EEU legal instruments and altered its tariffs and customs according to the Russian Federation. There are various reasons which have hindered the completion of the negotiation process for Kazakhstan (Petrick and Pomfret 2016). One of these includes tariff adjustment, as it needed the differences arising out of bilateral market aspects contract being discussed between WTO members and Kazakhstan to be addressed along with the problem related to EEU’s common external tariff (Bagdasaryan and Pakhomov 2016). The journey of the nation to the WTO was not easy and was subjected to significant challenges. It took the country almost 20 years of the 24 years they had been independent. The membership was only possible because the issue had been jointly addressed by the nation and the WTO members (Putz 2015). The bold trade liberalization and market reform economies which have been undertaken by the government. The president of the country Mr Nazarbayev with the help of his political commitments as well as personal involvement has been able to achieve this landmark for the country (Ainur and Diana 2015).  Constructive agreements and engagement have also played an important role towards the joining of the agreement. Demography has also played a role in relation to the delay caused by the country in joining the WTO (Amirbekova and Galyamov 2016). The country is landlocked and is located remotely form the primary markets where it exports its commodities. Being one of the primary exporters of wheat, export subsidies had been provided. A very painful decision had to be made by the country with respect to their economy in order to join the organization. This decision included elimination of export subsidies from accession date (Brink 2016).
There has been both multilateral as well as bilateral work done on the part of Kazakhstan along with the other members of the organization for the purpose of bringing its negotiations related to accession to an end as well as solving particular problems which come up through unilateral and multilateral interest (Kireeva and Robert 2015). In addition it had been highlighted by the Kazakhstan government that another significant impediment towards getting accession of becoming a member of the organization is that of agricultural subsidies (Fedorenko 2015). There had been intention in the part of the Kazakhstan government to have the right of increasing subsidies in regards to agriculture up to one tenth of the agricultural output (Petrenko, Kutyshenko and Tutelyan 2016). This limit is also allowed under the rules of the organization which have been laid for developing countries. A few other problems which the country had to face for the purpose of becoming the member of the WTO are that of sanitary and phyto-sanitary measures, domestic agricultural goods, intellectual property protection investment contracts which were to be addressed and solved before the negotiation process to accession (Amirbekova, Madiyarova and Andronova 2017).
Research Methodology 
A detailed discussion has been stated on methodology and design with regards to the research on a specific field. The meaning of research is to search about new knowledge. There must a proper method to search out for that knowledge. Generally, the method of research has also been stated as the systematic and theoretical impression of such different methods that can be used to find out the knowledge effectively. In order to fulfil the necessities of the study of research in a logical and scientific manner, there are some strategies, models and structures that needs to work together. Even where the method of research cannot be the result of the research because it provides with the proposal in consent with the research. These plans or proposals help the researcher to choose the most desirable technique to successfully complete the research. This part discusses about outline and also about the strategies of the research methodologies that is associated with some different models and principles. There are some other things like analyzing strategies, process of data collection and samplings that are also involved in the research methodology. In accordance with the fulfilment of the purposes of study, there is a division of research methodology.
In the examination reasoning, under research strategy its coming advance is to go for the best technique for the exploration. In the event that in the start of the examination the hypothesis apparently is well reasonable then it turns out to be simple for deciding the best approach. The methodologies can be of two sorts which are deductive and inductive approach. According to Vaioleti (2016) the investigation of research is likewise called the way toward creating, arranging, breaking down and appropriating the reasonable data and information which would help the clients individually, and they will have the capacity to find a way to accomplish their targets and objectives. The inductive and deductive approach are comparable is some circumstance, the deductive approach is said to be a best down process. In the first place a hypothesis had been produced and later a speculation was made. The speculation is then tried just to ensure with respect to its legitimacy in the investigation. In the interim the deductive approach searches for learning of some genuine highlights by putting forth legitimate and summed up expressions in the wake of learning about the realities. As per Glesne (2015) this approach depends on such speculations and ideas which are shown by extensive variety of quantifiable information.
With the end goal of this exploration the researcher has utilized the deductive approach. The deductive approach has been utilized by the researcher in light of the fact that using this approach the analyst on the grounds that the information investigation which has been utilized with the end goal of this exploration is subjective in nature and the deductive approach is most appropriate for this circumstance.
There are two form of data collection, Primary data collection and secondary data collection. Primary data is collected through surveys, interviews and questionnaires, whereas secondary data is collected through reports, books and journal articles. The research has selected only secondary data for this research. The researcher has collected the data through the use of reports, books and journal articles.
The fundamentals of the philosophy of the research are shaped actually by the strategies and plan of the research. There are three views present in relation to research philosophy which are to be taken into consideration based on the research topic. These views have been discussed below
In general situation there is disagreement between the common legal situation or general situations. In case they wish to support the social aspects it would make them lose quality where positivism is obeyed in totality while conducting the research. At the same time in order to have a view of the existing situation, complex social processes require common application to be resolved properly. Such expressiveness is therefore majorly required and the process of interpetivism is used for the research philosophy. This concept  is also known as social construction. It seeks meaning on theory so that the results in relation to the effects can be observed.  Mostly variation is seen in such interpretivism in relation to people exposed to several situations. In general it can be stated that with respect to this philosophy the fundamentally existing factors of a research are studied.
The process relating to realism is fundamentally relying in few specific principles. The process explains that the philosophy is independent totally form the thought of an individual along with his prejudgements and belief. As per business and social science there are a few powerful sources of social forces which may influence people individually without being aware and have an impact on behaviour and understanding. However, these social factors not being related to a choice of a person may gave a direct effect in the same way on those persons who have seen the world practically irrespective of their awareness. However a few concepts of realism and positivism can be stated to be similar. The identification of the subject matter mentioned but not the particular individual in realism. To the contrary, positivism is just the opposite. Realism is considered to be significant for having an understanding regarding the important factors which include social constraints, behaviour, and degree of impact, prejudgments and popular views.
Positivism is the first view of the research philosophy. There is a similarity in the thinking way of positivists and scientists. Only law of nature is considered in both the cases and no other social factors are taken into consideration. An exceptional tool like stress is used to shorten the reproduction successfully and another tool is inspection that helps in experimenting for the analyzation process and in the analysis of the statistics. At last it has been stated that the researcher must be honest and transparent with regards to the interpretation of the information that has been gathered.
The methodology which has been selected with respect to philosophy for this research is that of Interpretivism. This may be stated that because via using the philosophy the research has been provided with the benefit of interpreting the elements of the research taking into consideration the human element. The researcher has been provided the option to utilize the research of other researchers for the purpose of analyzing his own findings. In addition the researcher provides via this philosophy that there have been more than one reasons which has lead to the delay of Serbia and Kazakhstan from joining the WTO by completing the process of accession.
Data Analysis 
Kazakhstan is ending up increasingly globalized: it is important to build an open, law based society and a liberal financial framework, and setting up contacts with a significant number of the states on the planet. One of the researchers once said that globalization’s body is the economy, while universal trade shapes its veins, giving the living being blood. Worldwide business makes the world’s economy a dynamic substance and pulls alternate parts of globalization forward (Yakavets and Dzhadrina 2014). In the course of recent years, worldwide trade in modern merchandise has developed by 17 times, albeit worldwide creation has enlarged just six fold. Trade has turned into an essential factor of monetary development in created and creating nations. Furthermore, this impact is developing. Amid the previous decade, the development of worldwide business achieved 6.5% every year, except the total GNP went up by a minor 2% (MacGregor 2017).
This dynamic nature of worldwide business and its developing effect on the advancement of the worldwide economy have not appeared suddenly. In 1947, 23 states consented to the General Arrangement on Tariffs and Trade (GATT), which contained the arrangement of controls coordinating exchange products. From that point forward, these controls have been enhanced and altered, and the quantity of nations that have agreed to GATT has expanded. In 1990, GATT included 90 individuals. In 1995, after a progression of long transactions where the World Trade Organization was set up to wind up a successor of GATT and a universal establishment whose points are to change global business and make it reasonable. All the while, the General Agreement on Trade in Services (GATS) and the Agreement On Trade-Related Aspects of Intellectual Property Rights (TRIPS) were passed and became effective. WTO presently contains 145 individuals and another thirty nations have expressed their expectation of joining the association (Kireeva and Robert 2015).
This implies the origin of not just a multilateral exchange framework, but rather a worldwide one, intensely standardized and containing models and principles obligatory for all the WTO nations. Through WTO the world is getting to be joined under a solitary liberal monetary rooftop, which unavoidably implies submitting to certain normal standards.
Kazakhstan has announced its expectation of turning into a WTO part, and this is for sure an all around grounded move. The longing of a nation that is building an open society and an open economy to wind up a full individual from the worldwide network could not be welcome. WTO enrolment will be a critical milestone for every person, since this is equivalent in significance to the change to a market economy (Wilson 2015). The increases are self-evident: residential products will access outside business sectors with no segregation at all, and extra venture will stream into parts other than simply mineral assets.
In the meantime, it ought to be comprehended that these increases and favourable circumstances will not come consequently. All relies upon the planning, terms and level of arrangement when joining this global organization. It is obvious that numerous nations have been planning for WTO enrolment for quite a while. For instance, China, where there is no certainty concerning the achievement of the economy, preparing for this progression for a long time and joined the association in 2001 (Konopelko 2018). Nor is it by chance that those nations that did not put enough time and duty into getting ready for enrolment got no additions and even confronted major issues. Among those are Kyrgyzstan, Moldova and Georgia. Their experience of WTO participation can be viewed as negative, for this progression never drove them into the financial development that they had been relying on. Kyrgyzstan opened its limits to all products and expected significant approaching venture too. Further, this did not increment, but rather diminished. While remote direct interest in the nation came to $96m in 1997, in 2000 it was abridged to $39m. The financial records in Georgia are not enhancing, either. After Moldova joined WTO, the nation experienced major issues in various essentially critical segments, for example, farming designing, and the tobacco and wine-production businesses. Remote venture fell by 8% out of 2000.
All these things proved the thing that this is meaningless to deny the WTO membership of Kazakhstan. Anyway, a solid negativity and a decent arrangement of thought are basic while picking how to join this association. Indeed, we are exceeding the CIS nations said above as far as financial improvement rates and adequacy of changes (Zabortseva 2017). Indeed, the USA and Europe have perceived Kazakhstan as a market economy nation. We have to give the President’s system and the steady activities of the legislature their due for this achievement. In any case, there ought to be no scramble in our arrangements for WTO enrolment. The time when a nation joins is managed by its eagerness to benefit from its cooperation in changing universal exchange (Margulis 2014). For the time being the asset, administrative, institutional, human and data bases in Kazakhstan are not adequate to have the capacity to state with certainty that the nation will benefit from enrolment to the degree that we might want.
As of now, the nation has no top of the line creation that is important to global trade. Normally an area is viewed as aggressive in the event that it represents no less than 3.25% of world fares (Rasulov 2016). The offer of our nation in universal fares in 2000 by gatherings of merchandise was as per the following: agrarian items 0.18%, prepared items 0.02%, synthetic concoctions 0.01%, base machine designing 0.22% and minerals 0.49%. These figures imply that the additions from partaking in worldwide exchange will be inconsequential. In this way, in the event that we need to profit by enrolment, we have to consider send out arranged generation.
There is a need for making trade arranged generation, because of the thinness of the household advertises, and provide some time for the recognition. Certain frequent allude to the experience of Singapore, Thailand, Malaysia and different nations whose fare drove methodologies have pushed their merchandise out to the remote market and guaranteed stable monetary development in these nations (Yakavets and Dzhadrina 2014). Throughout the long periods of change the quantity of individuals utilized in Kazakhstani industry has been diminished considerably, 60% of the fundamental resources have decayed and interest in the modern segments has never been adequate. The unmistakable point ought to be made that Kazakhstan’s participation of WTO depends most importantly on the advancement of household industry.
Another vital issue is the measures to secure local producers and markets. This isn’t tied in with ensuring every one of the divisions of the economy. Under the standards of WTO, when exchange is completely changed, some of our areas with a low aggressive edge will stop to either exist or be re-orientated. In spite of the fact that this will assist us with overcoming the issues of the post-Soviet economy even more rapidly, a few fundamentally critical areas will be slaughtered by outside rivalry if no defensive measures are taken. These are agribusiness, light and sustenance businesses, building, and creation of development materials, among others. It can be assumed that the more liberal WTO directions, highlighting a lower level of tax security, were to become effective tomorrow. In EU nations, the offer of sponsorships makes up a normal of 40% of the benefits that agriculturists get from offering their creation (Herrmann, Simma and Streinz 2015). In nations, for example, Poland and Switzerland the obligation on imported agrarian create comes to 500-650%.
This is the reason to consider important the advancement of measures to help the agrarian area and ensure the inward market in rural create. More than 40bn tinge for each year could make a significant change to rural circumstance. In any case, the assets assigned by the state must develop, given that the material and specialized base of this division is in a poor state. The span of the state sponsorships gave to the agrarian part covers just 8% of the prime cost of homestead deliver. In Europe, this figure is five times higher. Along these lines, it is required to stipulate far more noteworthy state bolster for farming amid the arrangements for WTO enrolment. It is more convenient. For instance, the yearly Russian appropriations to farming stand at around $1bn. In addition, Russia is demanding expanding the figure to $16bn. This is by all accounts an extremely clever position, in light of the fact that a principal remaking of Russian farming will require gigantic measures of venture, because of its immature nature when contrasted with created nations (Bond, Widdop and Chadwick 2018).
With everything taken into account, it is required to investigate genuinely all the conceivable results of Kazakhstan’s enrolment in WTO. It is important to include researchers and specialists all the while, as occurred in Russia. People in general should be educated about the course and after effects of WTO arrangements, and about potential or existing issues. The WTO standards will influence every one of us: customers and makers, exporters and shippers. The more the general population knows about the WTO necessities, the more open doors it should be prepared for them. For instance, China acclimated 2000 heads of areas with WTO controls, and these heads at that point held different mindfulness building activities inside their locales. In Kazakhstan, nothing has been done in such manner. It is plausible to open focuses to prepare business people to work under WTO conditions. It is additionally time to start preparing specialists in global trade, who are so gravely deficient concerning today in Kazakhstan (Fedorenko 2015).
The technology that is outdated and the climatic conditions being unfavourable will compel the people of supporting it at the state level. Another factor that will account for it being supported at the state level will be the low profitability pertaining to domestic agriculture.This will be one of the agenda that will be raised while negotiating with the WTO.Kazakhstan will not be instrumental in taking up the issue in relation to export subsidies for the products of farming. They would highlight the fact that this kind of a concept is not prevalent pertaining to local export practice. This approach will not be feasible from the economic point of view. The physical features of Kazakhstan like it being a landlocked country which is located a large distance away from the important markets will lower the competitive edge of the products of Kazakhstan (Tarr 2016). The transport costs raises the prime price in relation to the products of Kazakhstan and it becomes 20-25 % of that of the prime cost. There are various countries that are situated near the sea like the countries within Europe where the transport cost does not go beyond the 10 %. The high transport cost is hence instrumental in degrading competitive edge pertaining to the products of Kazakhstan (Lillis 2015).
On the other hand, Kazakhstan can emerge to become a major exporter of the grains along with meat for the countries that are near but also to the far-flung countries. The state is instrumental in paying transportation cost not only for selling the produce within the foreign markets but also by taking recourse to the export subsidies (Kurmanov et al. 2016). These kinds of measures can help in solving marketing problem and it can provide impetus for reviving the agricultural economy. It has been seen that the stimulation of the agricultural export by the state subsidies is made use of by various developed countries.
The consequences that the membership of Kazakhstan with the WTO has to be analysed in a serious note. Scholars along with experts have to be involved in the process like what took place in Russia. It is important that the public is made known about the result in relation to the negotiations of WTO along with other potential or the existing problem. The rules of the World Trade Organization will affect everyone starting from the consumers to that of the importers (Lascu et al. 2017). It is important that the public is made aware of the requirements of the WTO that can help in unravelling myriad of opportunities for the public. China was instrumental in familiarizing 2000 heads in relation to the provinces with the regulations of WTO and the heads took various awareness building action in the regions. No steps have been taken in Kazakhstan in this regard. According to the findings, centres should be opened that can help in training the businessmen regarding working under the WTO condition. The experts should be trained in the domain of international commerce which is lacking within Kazakhstan (Kydyrova, Satymbekova  andKerimbek 2016).
It is necessary that every possible step should be taken that can help to avoid the same kind of mistake all over again. Shock therapy was applied in the first instance that was able to change the economic system of the country. There were various kinds of objectives along with subjective factor that forced them to take this up. Everything has become different at the present time.  The positive along with the negative factors should be analysed in detail that can help in taking up protection prevention measure (Aitzhanova et al. 2014). The analysis will help in standing for a position at the time of the negotiation that can help in putting forth arguments that are serious. The membership of Kazakhstan of the World Trade Organization should be painless as much as possible that can help in playing a positive role that can ensure the economic growth of the country.
Kazakhstan has been a member of the Eurasian Union since 2009 resulting it towards the transformation of significant part of its trade regime according to EEU legal instruments and altered its tariffs and customs according to the Russian Federation. There are various reasons which have hindered the completion of the negotiation process for Kazakhstan (Petrick and Pomfret 2016). One of these includes tariff adjustment, as it needed the differences arising out of bilateral market aspects contract being discussed between WTO members and Kazakhstan to be addressed along with the problem related to EEU’s common external tariff (Bagdasaryan and Pakhomov 2016). The journey of the nation to the WTO was not easy and was subjected to significant challenges. It took the country almost 20 years of the 24 years they had been independent. The membership was only possible because the issue had been jointly addressed by the nation and the WTO members (Putz 2015). The bold trade liberalization and market reform economies which have been undertaken by the government. The president of the country Mr Nazarbayev with the help of his political commitments as well as personal involvement has been able to achieve this landmark for the country (Ainur and Diana 2015).  Constructive agreements and engagement have also played an important role towards the joining of the agreement. Demography has also played a role in relation to the delay caused by the country in joining the WTO (Amirbekova and Galyamov 2016). The country is landlocked and is located remotely form the primary markets where it exports its commodities. Being one of the primary exporters of wheat, export subsidies had been provided. A very painful decision had to be made by the country with respect to their economy in order to join the organization.
In addition to this there are various domestic reasons as well which has prevented Kazakhstan from joining the WTO. These domestic reasons were change in political power and different views of the political party. The parties to the negotiation changed which made it difficult to be carried out.
Theme 2: factors that have attributed to the delay in case of Serbia and Kazakhstan from becoming a WTO Member
The Belgrade daily, ” Vecernjenovosti” has pointed out that Serbia could not join the World Trade Organization because it failed in allowing genetically modified food trade. According to the Serbian government, one of the pre-condition for membership of WTO was trade liberalization of GMO. The findings have brought out that there was the dearth of pro-GMO voice within the government and there was enormous amount of public pressure. The government has turned a blind eye to the forbidding of the GMO trade and there was strict procedures that made it impossible for it to be fulfilled by a large number of the importers. There were only 28 countries which have permitted the GMO trade. According to the findings, there were around 159 countries the majority of which was in the WTO that did not allow the trading of this food. It has been brought out by findings that Serbia should not be bothered about the membership of WTO. There were many who had the opinion that they would not be able to get anything in return in the event of them joining the WTO (Brankov and Lovre 2015). The entrance of the WTO does not guarantee better credit rating or improving of the trade condition. Serbia has been instrumental in signing various bilateral agreement that are interested in the importing of food. Serbia would be able get more profit after trading with the CEFTA countries along with Russia as compared to that of the European Union. Serbia signed that of the Free Trade Agreement with the Russian Federation that has made it attractive for the foreign manufacturers. It was thought of that the agricultural minister would not be supportive of allowing the GMO trade. One of the Serbian trade minister has said that the entry of Serbia to WTO would be hampered by the laws against that of genetically modified organism that can ban the cultivation of GMO not only within Serbia but in the case of other food imports (Beslac and ?ori? 2017).
As argued by Kireeva and Robert (2015) there has been both multilateral as well as bilateral work done on the part of Kazakhstan along with the other members of the organization for the purpose of bringing its negotiations related to accession to an end as well as solving particular problems which come up through unilateral and multilateral interest. In addition it had been highlighted by the Kazakhstan government that another significant impediment towards getting accession of becoming a member of the organization is that of agricultural subsidies (Fedorenko 2015). There had been intention in the part of the Kazakhstan government to have the right of increasing subsidies in regards to agriculture up to one tenth of the agricultural output (Petrenko, Kutyshenko and Tutelyan 2016). This limit is also allowed under the rules of the organization which have been laid for developing countries. A few other problems which the country had to face for the purpose of becoming the member of the WTO are that of sanitary and phyto-sanitary measures, domestic agricultural goods, intellectual property protection investment contracts which were to be addressed and solved before the negotiation process to accession
According to World Trade Organization, there should be no such country that bans the trade of any kind of product. In the event of meeting this requirement, one can think about entry. There were many who were not optimistic about the short-term prospect of Serbia in relation to WTO membership. There occurs a great deal of pressure along with public resistance in relation to change. There are around 163 countries that are members of the WTO and Russia has joined it a few years before. There are around 25 countries that will join that makes it a shame for a country like Serbia.According to the findings, around 135 towns along with municipalities have banned the GMO and a professor of the Belgrade University has disputed the claim that genetically modified food can act as the solution for feeding the growing population of the world (Vugdelija 2015).
According to findings, hunger can be solved by investing in the arena of agricultural production and the world possesses enough amount of resources without that of GMO for feeding the inhabitants of the planet. GMO does not deal solely with the selection method which is the intersection of that of two related plants belonging to same species but the intersecting of animal genes with that of the plant genes (Bjeli? 2015). It has been brought out that the GMO industry can be exploitative by taking recourse to certain methods. Agricultural products are wrongly being used by the selling of the GMO seeds and its price is increasing at a steady pace as compared to the conventional seeds. The sale of that of the herbicide which is on the basis of carcinogenic glyphosate can have a harmful effect on that of the plants along with animals. The use of food pertaining to GM can prove to be harmful for the consumers.
It has been brought out by suitable research that there exists a political dimension pertaining to pressure on Serbia for accepting food that is genetically modified. GMO acts as a paradigm pertaining to global organization of that of the society as the issue of food production is brought out of the national framework (Beha 2015). It has entered into the domain of the activity of multinational companies. It can be said that the country which is independent pertaining to food production also becomes independent in the political arena. This comprises to be an important part of national freedom and freedom of the people. Multi-national companies will be able to control the world if they emerge to become the only ones who are producing the seed. It has been brought out by research that Serbia  meeting the needs of agriculture without that of GMO seeds can lead to more problems than it can solve. GMO in the field of agriculture can pave the path for the opening of new problems. It is important for talking about other issues like agriculture, co-operatives that can help in dealing with the GMO food. The genetically modified organism can help in paying for the countries of Argentina, Brazil along with the United States that is produced on the large tract of the farmland (Kragulj, Parežanin and Jednak 2018). There exists many firms within Serbia that is small, averages around 4 hectares and are unprofitable. There are a large number of people who think that the destroying of the traditional seeds that is recognized in the global arena should not be replaced by the dubious product of someone else.
The primary issue which is being the hindrance for the accession process of Serbia is that which posed by Ukraine. The country had carried out bilateral agreements with the EU without being subjected to much considerable issues rather than the issue related to Ukraine. This is one particular issue which is the cause of delay for the country to get to a formal agreement. To add to the agony of Serbia the negotiation power of Ukraine in the WTO is much more than Serbia. Ukraine had restricted accession of Montenegro for a period of over two years citing an issue related to market accessibility (Konopelko 2018.). There has been a demand from Ukraine under which they have made a condition before Serbia to raise all restrictions and tariffs which have been imposed on the import on steel. On the other hand Serbia who also has the interest and intention of protecting its own steel industry are not willing to bow down to the condition. Although Ukraine does not have the power to prevent the association of Serbia for eternity they are still causing a delay in the process.
Thus it can be stated that the delay which has been caused to Serbia with respect to joining the WTO was primarily both multilateral and bilateral agreements and a lack of proper negotiation being carried out in relation to them. This is the main reason which is still hindering Serbia from joining the WTO however negations have accelerated recently. On the other hand when compared to Kazakhstan there problems were also present for them but they were able to effectively negotiate and join the WTO. The long process of accession is also a reason which delayed both the countries from joining the WTO.
Conclusions 
As discussed in the above findings there had been several reasons which had delayed the joining of Kazakhstan and still have not let Serbia become a member of the WTO. one of the primary reasons why which Serbia is still not able to join the WTO is that of not reaching an agreement with Ukraine. The country had carried out bilateral agreements with the EU without being subjected to considerable issues rather than the issue related to Ukraine. This is one particular issue which is the cause of delay for the country to get to a formal agreement. To add to the agony of Serbia the negotiation power of Ukraine in the WTO is much more than Serbia. Ukraine had restricted accession of Montenegro for a period of over two years citing an issue related to market accessibility. There has been a demand from Ukraine under which they have made a condition before Serbia to raise all restrictions and tariffs which have been imposed on the import on steel. On the other hand Serbia who also has the interest and intention of protecting its own steel industry are not willing to bow down to the condition. Although Ukraine does not have the power to prevent the association of Serbia for eternity they are still causing a delay in the process. It has been stated by Perišin (2015) that Ukraine is delaying the process of accession for Serbia citing unjustified demands. On the other hand the proponents of Ukraine are citing such demands to be absolutely justified and in the betterment of not only both the countries but also the world trade.
 Another important reason for is related to the issue of GMO. Serbia could not join the World Trade Organization because it failed in allowing genetically modified food trade. According to the Serbian government, one of the pre-condition for membership of WTO was trade liberalization of GMO. The findings have brought out that there was the dearth of pro-GMO voice within the government and there was enormous amount of public pressure. The government has turned a blind eye to the forbidding of the GMO trade and there was strict procedures that made it impossible for it to be fulfilled by a large number of the importers. There were only 28 countries which have permitted the GMO trade. According to the findings, there were around 159 countries the majority of which was in the WTO that did not allow the trading of this food. It has been brought out by findings that Serbia should not be bothered about the membership of WTO. There were many who had the opinion that they would not be able to get anything in return in the event of them joining the WTO. The entrance of the WTO does not guarantee better credit rating or improving of the trade condition. Serbia has been instrumental in signing various bilateral agreement that are interested in the importing of food. Serbia would be able get more profit after trading with the CEFTA countries along with Russia as compared to that of the European Union. Serbia signed that of the Free Trade Agreement with the Russian Federation that has made it attractive for the foreign manufacturers. It was thought of that the agricultural minister would not be supportive of allowing the GMO trade. One of the Serbian trade minister has said that the entry of Serbia to WTO would be hampered by the laws against that of genetically modified organism that can ban the cultivation of GMO not only within Serbia but in the case of other food imports. However, the issue is about to be resolved because of proper and persistent negotiations on the part of Serbia and other member countries like US. The issue which is in connection to India has also been resolved but has caused a little delay adding to the delay caused by the other issues.
Another reason for delay is that of the lengthy process of accession. Six essential procedures have to be carried out for the purpose of becoming a member of the WTO. The first of the procedures is to make an application which would be subjected to review by a working party such as any member of the WTO, UN, IMF or the World Bank. The next step is in relation to the submission of a Memorandum of the Foreign Trade Regime, having date in about the trade policies and economy of the country. The next steps involve setting out terms and conditions after certain discussions and negotiations which the observers will comply with prior to becoming members. Bi lateral trade agreements along with the country of choice has to be negotiated by the observer in the next step, the agreement reduces, sets and removes tariffs of the markets of the countries. The next steps includes the drafting of the membership terms by the working parties, which involves alternations made by the observers in relation to trade policies, commitments lists created through participants and the bilateral agreement terms. The final steps includes the approval provided by the general council approving the protocol of accession which has to be ratified in a three month period by the applicant and after one month of ratification the country becomes the member. The long process although having genuine reasons for being time consuming has lead to the delay of both the countries in joining the WTO.
Kazakhstan had also been subjected to delay but they had been eventually able to join the WTO after completing the process of accession. The physical features of Kazakhstan like it being a landlocked country which is located a large distance away from the important markets will lower the competitive edge of the products of Kazakhstan. The transport costs raises the prime price in relation to the products of Kazakhstan and it becomes 20-25 % of that of the prime cost. There are various countries that are situated near the sea like he countries within Europe where the transport cost does not go beyond the 10 %. The high transport cost is hence instrumental in degrading competitive edge pertaining to the products of Kazakhstan. On the other hand, Kazakhstan can emerge to become a major exporter of the grains along with meat for the countries that are near but also to the far-flung countries. The state is instrumental in paying transportation cost not only for selling the produce within the foreign markets but also by taking recourse to the export subsidies. These kinds of measures can help in solving marketing problem and it can provide impetus for reviving the agricultural economy. It has been seen that the stimulation of the agricultural export by the state subsidies is made use of by various developed countries. Although not being able to negotiate properly Kazakhstan had been able to find a place in the WTO as member. The delay which has been caused to Serbia with respect to joining the WTO was primarily both multilateral and bilateral agreements and a lack of proper negotiation being carried out in relation to them. This is the main reason which is still hindering Serbia from joining the WTO however negations have accelerated recently. On the other hand when compared to Kazakhstan there problems were also present for them but they were able to effectively negotiate and join the WTO. The long process of accession is also a reason which delayed both the countries from joining the WTO.
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