Afghanistan’s Accession to WTO Rings the Alarm for Iran

By: Mohammad-Mahdi Mazaheri

Although developments in Syria and Iraq, ISIS’ atrocities and Ankara-Moscow tensions have been at the top of the headlines these days, but we should not miss a positive economic turn for Afghanistan. Our eastern neighbor received approval to become a full member of the World Trade Organization this week during a WTO meeting in Nairobi, Kenya on Friday, December 18. Not even one vote was cast against Afghanistan’s membership in the organization. The WTO has given Kabul a five-year opportunity to align its policies with the organization’s regulations. Tajikistan, Pakistan and China are neighbors of Afghanistan who are also full members of the World Trade Organization.

Afghanistan’s accession to the WTO can largely help the country to pursue economic growth and attract foreign investment. The increasing rate of employment, particularly for the younger demographic, can hinder the spread of terrorism and also help solve transit problems with other members of the WTO. Export to co-members of the organization, with no necessity for bilateral trade agreements, is another advantage of full membership.

Approval of Afghanistan’s membership bears a more important messages nonetheless. The decision, more than being a business-oriented one, is political and prospective. No one doubts that Afghanistan does not currently qualify for full membership criteria such as transparency, low corruption or possession of adequate economic infrastructure. However, direct support from the European Union and the United States for the country to accede the World Trade Organization in order to fight terrorism have paved the way for Afghanistan’s full membership.

Afghanistan’s joining of the WTO also rings the alarm for non-members, including Iran. Among Iran’s neighbors, Turkmenistan is the only country that has not joined the organization. Iraq and Azerbaijan are observers in the WTO while Saudi Arabia, Turkey and GCC members are full members of the organization. This calls for Iran to rush to finalize its full membership in the organization. Since 2005, Iran has been an observer of the WTO, however, for various reasons, the most important of which is political, it has not registered itself as a full member and is currently the largest economy outside the organization. That means Iran, besides some marginal, non-developed economies, is left out of the WTO circle and this is not a situation that suits our position.

So far, the most important cause of our non-full membership in the organization has been obstructions thrown by Western countries, particularly the United States, to keep imposing their unfair sanctions on our companies. However, with the success of nuclear negotiations and closure of the PMD file in the International Atomic Energy Agency, and adoption of the Joint Comprehensive Plan of Action (JCPOA), the route towards full-membership is smoother than ever. Iran should now prepare the stage through economic and legal mechanisms to become a full member of the WTO, to turn into a regional economic powerhouse, a position that matches its regional political clout.

* This piece was originally pulblished in IRD Persian. Mohammad-Mahdi Mazaheri is a university lecturer and Middle East affairs analyst.