The Russian deputy prime minister, Sergei Ivanov, speaking in Washington after talks with U.S officials said that Russia will join the World Trade Organization WTO, in the summer or autumn of this year.

Russia and America have been talking about Russia’s WTO accession for a pretty long time, but a lull ensued at the beginning of 2000 and talks were resumed again in earnest after the assumption of office by Barack Obama. Towards the end of 2006, both sides reached a compromise on some key issues of Russia’s membership of WTO, but it would have been premature to say that the end had been reached. Until recently, America had been complaining about almost every aspect, including telecommunication and timber exports. Sharp differences over the issues remain, but Washington wants Russia to join WTO as quickly as possible.

Moreover, America has even helped to speed up negotiations between Russia and other countries, including EU members on WTO membership  for Russia. "The desire by the  U.S  to expedite Russia’s WTO membership is due to the belief that if Russia  a major power joins the World Trade Organization, Russo-American trade will witness a big boost," says Ivanov.

"It will have a positive effect on their bilateral business and investment, including the likelihood of the cancellation of the notorious Jackson-Vanick amendment."

The amendment was introduced in 1974, on the pretext of opposing the restriction of the emigration of Soviet Jews to Israel. The amendment forbade the granting of the status of “most favoured trading partner” to the USSR. It resulted in the imposition of discriminatory tariff on goods import from the USSR to the U.S. But the Soviet Union ceased to exist 20 years ago and the world has since then witnessed radical changes. But the trade barrier erected some 40 years ago remains as strong as ever, paradoxically.

Russia has coordinated its position with older members of WTO, except Georgia. Tbilisi is trying to wrest unacceptable concessions from Russia over South Ossetia and Abkhazia-two republics which proclaimed independence in 2008 after the naked aggression unleashed in the Caucasus by Georgia. "Russia recognizes the two republics, but the regime of Mikhail Saakashvili refuses to accept a fait accompli," says Dmitry Suslov of the Center for European studies.

"Tbilisi views Russia’s WTO bid as an instrument of putting pressure on the country to force it to make  an about-turn on Ossetia and Abkhazia. Georgia is dressing a political problem in the garb of economy," Suslov said.

Tbilisi insists on the legalization of its customs checkpoints on the Abkhaz and Ossetian sectors of the border with Russia, a move opposed categorically by Russia since it has nothing to do with WTO membership.

What, more, there is no Abkhaz-Ossetian sector on the Russian-Georgian border, but there are independent states duly recognized by the international community and Georgia should settle bilateral ties with them.

April 7^th, 2011

Source: The Voice of Russia

 

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