Iran Iran, officially the Islamic Republic of Iran, and also called Persia, is a country located in Western Asia. It is bordered by Iraq and Turkey to the west, by Azerbaijan and Armenia to the northwest, by the Caspian Sea and Turkmeni ...

officially submitted an application to join the

World Trade Organization The World Trade Organization (WTO) is an intergovernmental organization that regulates and facilitates international trade. With effective cooperation in the United Nations System, governments use the organization to establish, revise, and ...

(WTO) on 19 July 1996. From July 1996 to May 2001, Iran’s application had not been considered, mainly as a result of US objections and the US

veto power A veto is a legal power to unilaterally stop an official action. In the most typical case, a president or monarch vetoes a bill to stop it from becoming law. In many countries, veto powers are established in the country's constitution. Veto pow ...

in the WTO Council. From May 2001 Iran’s application for WTO membership has been brought up 22 times. At the 22nd time, on 26 May 2005, Iran’s application for WTO membership was approved unanimously by the organization’s members (and thus by the United States and Israel as a goodwill gesture so as to ease the nuclear negotiations between Iran and the international community). Thus the process of Iran’s membership in the WTO started. Once Iran’s application was accepted and examined by WTO General Council, Iran became WTO observer member and started the process of full membership in the organization. In November 2009 Iran submitted the
Foreign Trade Regime Memorandum
' as the process of accession entered a new phase.

Status of accession working party

The

Ministry of Commerce A Ministry of Trade and Industry, Ministry of Commerce, Ministry of Commerce and Industry or variations is a ministry that is concerned with a nation's trade, industry and commerce. Notable examples are: List *Algeria: Ministry of Industry and ...

is in charge of managing the process of accession to the WTO. The next step includes setting-up and meetings of the WTO working party, which include protracted negotiations on a range of economic issues. Iran will join WTO as a full member only at the conclusion of this multi-year process and the implementation of the

Iranian Economic Reform Plan The economy of Iran is a mixed economy with a large state-owned sector and is the largest in the Middle East in terms of nominal GDP. It is the world's 21st largest by purchasing power parity (PPP). Some 60% of Iran's economy is centrally pl ...

¹ New updated memorandum to be submitted by 2017.

Economic Reform

has an observer status at the

(WTO) since 2005. The United States has consistently blocked Iran's bid to join the WTO since Tehran first asked for membership several years ago. Iran has allocated $20 billion in loans to launch 20

trade center Trade involves the transfer of goods and services from one person or entity to another, often in exchange for money. Economists refer to a system or network that allows trade as a market. An early form of trade, barter, saw the direct excha ...

s in other countries.

Exports

The WTO in its report "World Trade 2011" has praised Iran’s export growth in 2011, noting that while world trade expanded in 2011 by only 5 percent, Iran’s exports raised more than 30 percent. According to the report, Iran exported more than 131 billion dollars of merchandise in 2011, ranking as the 23rd biggest exporter in the world. The country’s exports in 2010 stood at 101 billion dollars, the report further said. Iran's non-oil exports increased over 500% in between 2005 and 2011. Iran's main non-oil exports are petroleum gases, liquefied gas hydrocarbons, liquefied propane, methanol, mineral fuels, chemical products, plastics, fruits, nuts, fertilizers, and carpets.

Free trade zones

is hoping to attract billions of dollars' worth of foreign investment while creating a more favorable investment climate, such as reduced restrictions and duties on imports and the creation of

free trade zone A free-trade zone (FTZ) is a class of special economic zone. It is a geographic area where goods may be imported, stored, handled, manufactured, or reconfigured and re-exported under specific customs regulation and generally not subject to cu ...

s like in Qeshm, Chabahar and

Kish Island Kish ( fa, کیش ) is a resort island in Bandar Lengeh County, Hormozgān Province, off the southern coast of Iran in the Persian Gulf. Owing to its free trade zone status, the island is touted as a consumer's paradise, with numerous malls, s ...

IRGC

The lack of financial transparency and accountability into Iran’s inner economic workings empowers and supports the

IRGC The Islamic Revolutionary Guard Corps (IRGC; fa, سپاه پاسداران انقلاب اسلامی, Sepāh-e Pāsdārān-e Enghelāb-e Eslāmi, lit=Army of Guardians of the Islamic Revolution also Sepāh or Pasdaran for short) is a branch o ...

’s many illicit activities, as well as its control of a

shadow economy A black market, underground economy, or shadow economy is a clandestine market or series of transactions that has some aspect of illegality or is characterized by noncompliance with an institutional set of rules. If the rule defines the s ...

. But there are also arguments that the IRGC should harness, rather than resist,

globalization Globalization, or globalisation (English in the Commonwealth of Nations, Commonwealth English; American and British English spelling differences#-ise, -ize (-isation, -ization), see spelling differences), is the process of foreign relation ...

, with the question of World Trade Organization accession emerging as a key point of debate in Iran.

WTO copyright laws

Iran's government has not agreed to be bound by WTO copyright laws, endorsing the free distribution of unlicensed software in massive quantities.

Linux Linux ( or ) is a family of open-source Unix-like operating systems based on the Linux kernel, an operating system kernel first released on September 17, 1991, by Linus Torvalds. Linux is typically packaged as a Linux distribution, w ...

, freely reproducible even in countries with strong

Intellectual Property Intellectual property (IP) is a category of property that includes intangible creations of the human intellect. There are many types of intellectual property, and some countries recognize more than others. The best-known types are patents, cop ...

(IP) laws, is also growing in popularity within Iran, however. Iran may change this status if and when it becomes a full member of

WTO The World Trade Organization (WTO) is an intergovernmental organization that regulates and facilitates international trade. With effective cooperation in the United Nations System, governments use the organization to establish, revise, and e ...

, as WTO members are encouraged to abide by WTO copyright regulations. However, the

United States The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 states, a federal district, five major unincorporated territori ...

has previously vetoed Iran's ascension to the WTO 22 times, and actively refuses to support Iran's full membership in the WTO. Thus, as a matter of reciprocity, Iran has determined that its interests are not served by observing WTO copyright treaties, and has thus exercised its sovereign right not to alter its laws, thereby making certain foreign copyrights unenforced by Iranian authorities, in theory, or in practice. Yet, if Iran does eventually gain membership status in the WTO, among other prerequisites,

copyright law A copyright is a type of intellectual property that gives its owner the exclusive right to copy, distribute, adapt, display, and perform a creative work, usually for a limited time. The creative work may be in a literary, artistic, educatio ...

s will have to be obeyed in Iran. This would require a major overhaul of business and trade operations in Iran. Iranian pharmaceutical manufacturers are disadvantaged by the government's poor intellectual property protection regime. Developing a molecule for combination therapies may qualify for patent protection in other countries. However, while weak patent law adherence continues in Iran, it is expected this will create significant barriers for Iranian companies prospecting trade on the global market.

References

External links

WTO accession status - IranMemorandum of the foreign trade regime of Iran
(145-page document describing all aspects of Iran's trade and economic policies that have a bearing on WTO agreements, including the lists of

trade agreement A trade agreement (also known as trade pact) is a wide-ranging taxes, tariff and trade treaty that often includes investment guarantees. It exists when two or more countries agree on terms that help them trade with each other. The most common tr ...

s and preferences exchanged between Iran and other countries) * - Many practical information and sector specific reports, with useful websites and resources (login required for sector reports)
Iran's Process of Accession to WTOTrade Promotion Organization of Iran
- affiliated to the

Ministry of Commerce (Iran) The Ministry of Commerce of Iran was the main organ of the Government in charge of the regulation and implementation of policies applicable to domestic and foreign trade. This includes: *implementing commercial strategies and regulations, *promot ...

Challenges of Iran's agriculture sector in accession Process to the WTO
- Omid Gilanpour (2006)
Accession of Iran to the World Trade Organization: A Legal-Political Overview
- S. Jalal Alavi (2010) {{economy of Iran Economy of Iran World Trade Organization