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3 December 2009
Breaking News:

Russia 'can join WTO in three months with US help' 

Published: Tuesday 22 September 2009   

Russia has expressed renewed interest in joining the World Trade Organisation, saying that with US help, this could be achieved in three months. However, US officials said on Monday (21 September) that progress depended on Moscow's "dedication" to achieving that goal.

Background:

Russia is the largest country outside the 153-member World Trade Organisation (WTO). It has been trying to join WTO for 16 years now. 

The International Monetary Fund (IMF) warned last June that Russia's bid to join the WTO was losing momentum. 

On 4 June, EU Trade Commissioner Catherine Ashton said she agreed with Russian Economy Minister Elvira Nabiullina that Moscow's WTO accession should be completed by the year's end, saying the two sides had a "common understanding". 

Surprisingly, days later Prime Minister Vladimir Putin said Moscow would only join the trade body in partnership with two former Soviet republics – Belarus and Kazakhstan (EurActiv 10/06/09). 

Russia has previously accused the United States and the European Union of hindering its WTO bid for political reasons. 

On Russia's application, some of the sticking points include protection of intellectual property, the business practices of Gazprom, and a Russian trade blockade with neighbour Georgia, which recently joined the WTO. 

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US Trade Representative Ron Kirk's office issued the statement after a meeting between Kirk and Russian First Deputy Prime Minister Igor Shuvalov. 

"Ambassador Kirk welcomed the prospect of renewed engagement with Russia on its WTO accession negotiations following a period of uncertainty regarding Russia's intentions," the statement said. 

"However, he again noted that progress in these multilateral negotiations has always depended and will still depend on Russia's dedication and work toward that end." 

Russia is the only member of the Group of 20 major developed and developing economies meeting this week in Pittsburgh that is not a member of the WTO. It accounts for about half of the 4% of world trade not governed by WTO rules. 

Earlier this year, Russian Prime Minister Vladimir Putin threw Russia's WTO bid into confusion by saying the country would only join as part of a customs union with former Soviet republics Kazakhstan and Belarus. 

WTO Director-General Pascal Lamy said at the time it was unclear whether the rules would allow that and predicted "serious legal poker" before the issue was resolved. That was the latest setback for Russia's long-running bid, which Western powers put on hold in late 2008 after the brief war between Russia and Georgia. 

Shuvalov told reporters at a briefing on Monday at Russia's embassy in Washington that the United States had been a major obstacle to Russia completing its bid. 

"Something always happens which changes the American position," Shuvalov said. "When you talk with [other negotiators] in Geneva, they always say that 99% depends on [the] American administration. If [the] American administration wants Russia to be in [the] WTO, it's two to three months working and everything is done," he said. 

Shuvalov said he had come to Washington with proposals for resolving four remaining issues blocking its WTO bid. They include US concerns about enforcement of intellectual property rights and access for its meat exports, he said. 

Those could be finalised "very quickly, maybe a few weeks," but "it can be done only with the help and assistance of the American administration," he said. "We are flexible, just let us in," Shuvalov said, adding Russia's plan to join a customs union with Kazakhstan and Belarus should not be a reason to block its entry. 

Kirk reaffirmed on Monday that the United States supported "Russia's individual accession to the WTO and will continue to provide constructive support to achieve that goal," the trade office statement said. 

(EurActiv with Reuters.) 

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