ID :
151404
Sat, 11/27/2010 - 21:50
Auther :

No key differences left at Russia`s talks on WTO membership.

MOSCOW, November 27 (By Itar-Tass World Service writer Lyudmila
Alexandrova) -- Russia and the EU have eliminated all outstanding
differences over Russia's accession to the WTO, and not a single major
point of disagreement hinders further talks. In early October Russia
managed to successfully conclude bilateral negotiations on accession to
this organization with the U.S., and on Thursday the news arrived that
Moscow had settled the last odds with Brussels.
The main differences with the European Union have been lifted, First
Deputy Prime Minister Igor Shuvalov said on Thursday after negotiations
with the European Commission. "The remaining details are technical and
legal ones. The final decision will be made on December 7 at the Russia-EU
summit in Brussels."
"We have resolved all issues, and now Russia has no barriers hindering
its entry into the WTO," Shuvalov stated. He added that the agreements
with the EU accommodated the wishes of the United States. In particular,
an agreement was reached on the gradual reduction of export duties in
Russia.
Moscow hopes to join the WTO in 2011, presidential aide Arkady
Dvorkovich said earlier.
Harmonization with the EU ends the final stage of bilateral
negotiations on accession to the WTO, which started in 2004, runs a joint
statement issued by the European Commission and Russia. Russia has already
secured the support of the U.S. In September, the two sides agreed on the
activities of state-owned enterprises, on access to the public procurement
market, and on the transparency of legislation. U.S. President Barack
Obama then promised support for completing the remaining steps in the
multilateral talks to let Russia join the WTO as soon as possible.
The European Commission's statement says the talks ended with a
balanced agreement on all issues.
There remain ongoing "multilateral issues to be resolved in such areas
as agricultural trade, technical regulations, including sanitary and
phyto-sanitary rules, and the investment regime in the automotive sector,"
the European Commission said, adding both parties were confident about
rapid progress.
However, the main EU claims to Russia concerned export duties on raw
timber that Russia had hoped to raise to promote processing in its own
territory. Starting from 2010 Russia had hoped to raise duties on
unprocessed timber up to a prohibitive level - from 15 euros per one cubic
meter of timber to 50 euros.
Such eurozone members as Finland and Sweden, whose industry depends
heavily on timber supply from Russia, asked it to abandon the raising of
export taxes. In response, Economic Development Minister Elvira Nabiullina
promised to extend the moratorium on new fees for another year, until
January 1, 2012. A final compromise has not been achieved yet.
The freeze on higher export taxes on unprocessed timber will be
extended for 2011, and the duties as such lifted in exchange for Russia's
accession to the WTO no later than December 31, 2011, a source in the
government told the daily Kommersant. This decision will be documented by
the beginning of next week.
Apart from the claims by members of the European Union Russia still
has controversies with the leading exporters of food - the so-called
Cairns Group, which includes 19 countries, such as New Zealand, Australia,
Canada and some Latin American countries. The outstanding disagreements
are over the size of agriculture support subsidies.
Russia's position on this matter was earlier formulated by Agriculture
Minister Yelena Skrynnik. According to her estimates, by 2012 the level of
state support for agriculture will remain the same - 9 billion dollars a
year. In 2013-2017 the subsidies will be reduced to 4.4 billion per each
year. The Cairns Group insists on much smaller rates - 2-3 billion dollars
a year.
"The search for an agreement on this issue should first and foremost
be conducted with those countries in the Cairns Group which have zero
subsidies for agribusinesses. The rest will feel less hurt," Alexei
Portansky, the director of the information bureau for Russia's accession
to the WTO, told the online newspaper GZT.RU.
Lastly, Russia does not have a final approval from Georgia. The rules
of the WTO stipulate that every applicant for membership of that
organization must get the consent of each of the WTO members. Georgia
complains about what it calls Russia's trade sanctions. Also, it claims
that part of its territory is "occupied" by Russia, and that trade there
is paralyzed. But, as the head of a department at the Economic Development
Ministry, Maxim Medvedkov, has said, "Georgia's claims are political,
while the WTO is not a political organization."
Coordination with the EU means that the European Commission will help
Russia remove the remaining contradictions with all other WTO members and
complete the negotiations, a European Commission representative is quoted
by the daily Vedomosti as saying.
Shuvalov said on Thursday that he had heard "nothing about the
intention of Georgia to block Russia's accession to the WTO." Meanwhile,
Georgia's objections to Russia's WTO membership have been known for long.
Georgia has more than once declared in various devious ways it disapproves
of the idea of Russia's accession to the WTO.
"This rather strange statement by Shuvalov has been interpreted by
some experts as evidence of Moscow's preparations for some concessions to
Tbilisi, for example, the opening of the market to Georgian goods,"
Nezavisimaya Gazeta said. "At the same time specialists close to the
negotiations argue that the risk of failure at talks with the EU still
remains, and this may push Georgia's claims against Russia into the
background again."
Deutsche Bank's chief economist, Yaroslav Lissovolik, is quoted by
GZT.RU as saying that Russia should accelerate the process of joining the
WTO.
"Now the major players in the WTO - the EU and the U.S. - have the
political will to let Russia in. In 2012 the U.S. will have a presidential
election. Who emerges the winner remains to be seen. There is a risk the
years-long process of negotiations on WTO membership will have to be
started from scratch," he warned.

-0-str

X