Proper understanding of the World Trade Organization’s membership requirements is necessary for uniform implementation of

the organization’s principles as Laos works towards accession to the body.

                                                                        
    The prospect of reaching compliance is hoped to be stimulated by the one-day seminar held in Vientiane yesterday, attended by

30 representatives from government key sectors and business units.

     The participants of the US embassy-sponsored seminar, conducted by representatives from US Trade Commerce Departments,

were scheduled to learn the requirements of the Subsidy Countervailing Measures (SCM). The seminar would provide information

and ideas regarding trade subsidy programmes and policies to ensure consistency with Laos ' WTO accession commitments and
its commitments under the US-Lao Bilateral Trade Agreement, according to a press statement from the US Embassy to Laos .

     Issues regarding export-import finance from banks were also on the agenda to be discussed.

     Additionally, the seminar was used to draft a notification of the SCM agreement, which is part of the move toward gaining WTO

membership for Laos .

     In opening remarks, Deputy Minister of Industry and Commerce, Ms Khemmani Pholsena urged attendees to properly

understand and exchange views regarding the SCM agreement and its obligations with the hope to stimulate compliance efforts.

      “A challenge for Laos in the negotiation work to enter the WTO is the improvement of internal legal procedures in conforming to

the organization’s principles, particularly ensuring transparency and effectiveness of implementation,” she said.

     She said systematic coordination among relevant sectors is vital for uniform implementation.

    During the seminar, export subsidy and import substitution issues, which are attached with the SCM agreement, were raised for

discussion.

    Ms Khemmani said that export subsidy and import substitution measures are important factors for Laos ' economic development

and readiness to deal with SCM agreement obligations.

     But the measures must conform to the agreement. In the economic special zones and border trade areas of Laos , for instance,

the developing country is able to benefit from export subsidy measures under the Special Deferential Treatment.

     Director General of the Ministry of Industry and Commerce's Foreign Trade Policy Department, Mr Bounsom Phommavihane

explained that less developed countries benefit from these specialized policies.

     He said timelines and strict obligations for these less developed countries could be compromised, but the most important thing is to make sure domestic law and regulations conform to WTO requirements.