Libya-WTO talks to spur reforms

Libya's agreement with the World Trade Organisation (WTO) to begin talks on admission will help the North African country speed up economic reforms, a top government official said yesterday.

"The WTO decision is an opportunity for Libya to revamp its economy, and improve production and productivity of its economic units and services," Ali Sherif, a top Economy and Trade Ministry official, told Reuters.

The Geneva-based WTO agreed on Tuesday to set up a working party on Libya, usually the first step on the road to entry for any country seeking membership. Talks could last for years.

"This encourages us to develop further our economic and trade potentials... It's another incentive to upgrade our services," Mr Sherif, the ministry's secretary-general, said.

Trade diplomats say approval for starting talks does not mean that Libya, eager to re-enter the global economic and diplomatic mainstream since its leader Muammar Gaddafi pledged in December to scrap banned weapons, can expect an easy passage.

The talks will involve bilateral negotiations with any WTO country that fears Libyan exports could have an impact on its own markets or wants to ensure good terms for selling goods to Libya.

Libya plans to privatise a state-controlled economy largely reliant on oil and give the private sector a larger role.

Tripoli-based diplomats said talks with the WTO would help reform-minded ministers in the government speed up this ambitious privatisation programme.

"WTO talks are an opportunity to open up the market and liberalise domestic prices. Libya has been doing it and is moving further along in that direction," Mr Sherif added.