Russia and the US announced on 11 November an agreement “in principle” on the terms for Russian entry into the WTO. The final deal should be signed on November 18 at the Asia-Pacific Economic Co-operation summit.
WTO negotiations between the two nations had stalled for years over disagreements regarding Russia’s import terms for US agricultural products, its reluctance to open up its financial services markets and its poor performance on fighting piracy and counterfeiting.
The agreement, which includes pledges by Russia to lift restrictions on imports of US beef and pork and crack down on intellectual property offences, lifts one of the last major obstacles to Russia becoming the 150th member of the WTO, after 13 years of negotiations.
Nevertheless, Russia’s WTO bid will still face a number of hurdles, as the country must yet reach an agreement with Costa Rica and confirm previous deals with Georgia and Moldova. Georgia, whose small economy is suffering following a Russia-imposed economic blockade, has said it will block Russia’s membership unless the embargoes are lifted.
Furthermore, the Republicans’ defeat in the 7 November US congressional elections could complicate the final approval of the agreement as the Democrats, who will take control of Congress as of January 2007, push for a more protectionist agenda.
The EU wrapped up negotiations in 2004, but has repeatedly warned Russia that the success of its bid still hinges on reaching an agreement over fees that European airlines must pay in order to fly over Siberia and that the EU wants phased out.
