Lithuania's WTO Accession
It is good to see that Lithuania is about to join its Baltic neighbours in Geneva. On 2 October 2000, the WTO Working Party on the Accession of Lithuania, approved the country's membership documents. The process now moves to the General Council for final approval at its 7-8 December 2000 meeting.
Accession will provide the country with a further incentive to reorient its trade relations away from Russia and the CIS states. This is important, as it will probably increase the likelihood of economic stability within Lithuania, which has been quite fragile from the 1991 restoration of sovereignty.
Though Lithuania's negotiators apparently sought EU support to avoid agriculture disciplines, it was not to be. Lithuania will reduce domestic agriculture subsidies by 20 percent over five years. It also agreed to eliminate agricultural export subsidies upon accession. Within the context of on-going economic reform, the gradual move to a more market based agriculture is in the country's interests. It may also lead the way in demonstrating the growing commitment by the government to squeezing subsidies out of the government expenditure plan.
Joining the WTO will also prepare the way for membership in the EU, which is targeted for 2004. As was the case with the WTO accession negotiations, discussions with the EU continue to center on the agriculture sector. Recent data indicate that more than 25% of Lithuania's agricultural exports enter the EU, and the EU is the source of more than 40% of Lithuania's agricultural imports.
Lithuania expects the Seimas to ratify the WTO accession instruments by 1 May 2001, clearing the way for membership as early as June 2001.
ISSN 1492-7187, TRADE POLICY MONITOR, October 2000,
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