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10 October 2011

Russia may join WTO before year’s end

It looks like Russia will join the World Trade Organization already before this year is out. Still, almost two decades since Moscow applied for membership, there is a growing sense of uncertainty among many Russians about the expediency of joining the 153-member organization.

Narrator: The matter very naturally arose during the recent Russia Calling! economic forum in Moscow, sponsored by the state bank VTB.

In his first direct address to investors after announcing that he would run again for president next year, Prime Minister Vladimir Putin said,

"I want to say that we see pros and cons  to our possible joining the WTO. Clearly, entire Russian industries cannot compete with their potential competitors who are more efficient and offer products of better quality at lower prices."

Many businessmen, many major leading Russian companies tell us, the government, including me, that Russia doesn’t need to join the WTO, because we will have to open our markets, let in our competitors who will squeeze us out of our own markets. We understand what stands behind these apprehensions; therefore we are trying to agree with our foreign partners and have reached general agreements on key issues, including agriculture and car assembly plants.

Now, what do we hear from our partners? Now they tell us: “Go and talk to Georgia.”

Certainly, I have a legitimate question in this connection: Do our key partners in Europe and the US really want Russia to be part of the WTO? Why hide behind the Georgian issue? If they really want us to be part of the WTO, they can make things happen overnight, all the more so since we have reached compromises on major issues. If they don’t, then the Georgian problem is certainly a pretext, and there may be many others, too.

Narrator: Asked whether joining the WTO would be good or bad for Russia, Putin said it was “fifty-fifty, but overall there are probably more pluses than minuses for Russia… We are not abandoning this goal, and we are ready to join the WTO in full, but we will do so only if they don’t set unacceptable terms for Russia,” the Premier emphasized.

Narrator: Russia’s longtime bid to join the WTO was also high on the agenda of the meeting Deputy Prime Minister Igor Shuvalov recently had with  leading US trade officials in Washington where he secured their strong backing for Moscow bid to enter the WTO.

"Russia unfortunately remains the only major global economy outside the WTO. In theory, this means that it has more freedom in setting import and export restrictions. However, instead of limiting access to our markets, we made a decision to accelerate Russia’s WTO accession and plan to complete this process in the near future. Yesterday we had very fruitful talks in Washington D.C. with the administration, the Vice President of the US and Congressmen, even with Ms. Ros-Lehtinen, the Chairman of the Committee, who criticizes us a lot. We explained that it’s for the benefit of all the countries and for the mutual benefit of both the US and Russia. We trying to complete the deal by the end of December and I have to say that, thanks to the leadership of the American administration, we are very close to doing this. You asked me where we are now in terms of the WTO accession.

Again, with the leadership of the American administration, we completed a very difficult task in Geneva – we had Americans working with our delegation 24 hours a day in order to persuade other WTO members that Russia should get membership before the end of the year. At the beginning of this year very few people believed that it’s possible. Now we are very close to that. Unfortunately, we have a few minor issues, which don’t relate to our cooperation with Americans but involve a third party. I wouldn’t like to discuss this publicly. But we work together. Again, I believe it will be for mutual benefit and I hope that, with the help of the American business community, the Jackson-Vanik amendment will be abolished. It will be the last sign of the Cold War, which will be dismissed."

There is a growing Western desire to see Russia a member of the WTO and  chances are high that, with certain conditions, Russia will be there already before January…

english.ruvr.ru

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