The Effects of the Islamic Republic of Iran’s Accession to the World Trade Organization on Maritime Transport Services
The World Trade Organization is the largest international organization aimed at liberalizing international trade and currently has 164 members.
The Impact of Accession on Iran’s Domestic Maritime Transport Regulations
The World Trade Organization
The World Trade Organization began operating on January 1, 1995. One part of the WTO framework traces back to a 34-article agreement signed on October 30, 1947, by 23 countries, primarily advanced industrial states. That agreement was similar to the General Agreement on Tariffs and Trade (GATT).
The General Agreement effectively created an informal international organization known as GATT.
At present, the three principal agreements within the WTO system are:
- The General Agreement on Tariffs and Trade (GATT).
- The General Agreement on Trade in Services (GATS).
- The Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS).
Agreement Structure
The core framework of this agreement includes general obligations applicable to all members and to all measures affecting trade in services, including laws, regulations, procedures, decisions, executive measures, and similar instruments. It consists of 29 articles and six parts.
The General Agreement on Trade in Services also includes eight annexes, some of which may be temporary or permanent.
A temporary annex is prepared for negotiations following the Uruguay Round and becomes inapplicable once negotiations reach an outcome.
Permanent annexes include those relating to air transport services, the movement of natural persons, telecommunications, and financial services, except as provided under Article 2.
The content of the agreement includes principles that are presented as the main principles of liberalization of trade in services, including the following:
- Ensuring that members inform one another regarding activities related to trade in services, including the publication and immediate establishment of relevant websites concerning courts and legal proceedings.
- The principle of Most Favored Nation treatment means members must immediately and unconditionally extend MFN treatment to all their trading partners, whether WTO members or non-members. In practice, this may result in treatment that is less favorable than that applied through ordinary selection processes or through bilateral and regional arrangements.
Non-Discrimination Policy
This means that members should not treat other members, or the services and service suppliers of other members, unfavorably.
The Current Status of Maritime Transport Services in Iran
A significant portion of Iran’s maritime transport-related services is carried out through the port administration structure. Depending on local capacities in each province and port city, services are provided directly by the General Ports Office, and through companies and institutions operating under the supervision of the General Administration and the relevant organization, and guided by that organization.
At present, supervision over service activities in 12 major ports, among fewer than 50 key ports in the country, falls under the Ports and Shipping organizations.
An overview of certain port services related to maritime transport at three major ports is provided below.
Services Provided at Shahid Rajaee Port
The main services at Shahid Rajaee Port include pilotage, maintenance and repair of navigation aids and waterway safety equipment, vessel inspection, port affairs, leasing of vessel rooms and berths, and vessel services under the supervision of marine units. Companies may also conduct loading and unloading operations at Shahid Rajaee Port.
Services include:
- Cargo counting.
- Water supply.
- Cargo transport agency services.
- Container operations.
- Assistance and rescue.
- Provision of personnel and equipment.
Imam Khomeini Port
Services include management operations (including channel management, maintenance, and separation) and tug operations. Imam Khomeini Port currently has nine vessels and two pilot vessels.
Tug operations are performed independently under the supervision of a private company. Responsibility for the operation, maintenance, and repair of vessels is assigned through a tender contract framework.
Anzali Port
This port has 10 berths, a berth yard, 4 roofed areas, open container areas, and warehouses. It is also prepared to provide berthing services for vessels carrying hazardous goods and commercial vessels. The land and sea equipment of Anzali Port is held under private control.
Marine equipment includes service boats, exploration and rescue boats, tugboats, pilot boats, hydrographic boats, and other types of boats.
Categories of Maritime Shipping Services Subject to Liberalization Commitments
Shipping services that may require Iran to undertake liberalization commitments are divided into four main categories:
- Vessel pilotage, support and towing services, storage, fuel and water supply services, collection services, harbor master services, vessel support (including lighthouse tower functions, navigational support, radar navigation services), other electronic and vessel support including port services and security upgrade systems, shore based operational services necessary for vessel operation including communications, water and electricity supply, emergency repairs, transport services, vessel rescue and recovery services.
- Vessel-related services, including chartering vessels with crew, vessel maintenance, and repair.
- Intermediate service,s including customs brokerage services, customs clearance services, and water agency services.
- Cargo and passenger services, including passenger and cargo transport, marine cargo handling services, warehousing and storage services, warehouse and container services, transport services, water taxis, and cargo vessel services.
Frequently Asked Questions About the Effects of Iran’s Accession to the WTO on Maritime Transport
Membership in the World Trade Organization requires Iran to observe the principles of liberalization in the maritime transport services sector. Companies and institutions active in this field must comply with WTO related rules and avoid discriminatory treatment among members.
The main principles include Most Favored Nation treatment, non discrimination, prompt notification regarding measures affecting trade in services, and compliance with the regulatory framework for liberalization of trade in services.
Maritime transport services in Iran are mainly provided under the supervision of ports and shipping administrations. In major ports such as Shahid Rajaee, Imam Khomeini, and Anzali, services include pilotage, towing, berthing, container operations, fuel supply, and operational support services.
WTO membership may require port services, including pilotage, support services, intermediate services, and cargo and passenger services, to be provided in a transparent, competitive, and non discriminatory manner, and may enable a greater role for private providers within the applicable framework.
Areas such as vessel operations, shore and sea support services, customs clearance, warehousing, and passenger transport may need to be aligned with international standards and the WTO principle of non discrimination.
Potential effects include increased transparency, facilitation of investment, improved competitive conditions among service providers, enhancement of service quality, and facilitation of international trade in goods and passenger movement through Iranian ports. What effect does Iran’s accession to the WTO have on maritime transport services?
What are the key WTO principles in the services sector?
What is the current status of maritime transport services in Iran?
How may port services change as a result of WTO membership?
Which areas of Iran’s maritime transport services may need to be aligned with WTO rules?
What benefits may WTO membership bring to Iran’s maritime transport sector?
