Backed
by economic reforms along with high oil prices, Russia came a long way since its
economy's systemic collapse in 1998. In the recent past, the government's dismemberment
of Yukos, a Russian oil company, was a sign of its efforts towards the market
economy. It reached another milestone by entering the WTO, a significant boost
to Russia's hopes of joining the 149-nation body after 13 years of talks. Russia
and the US announced on November 11, 2006 an agreement "in principle"
on the terms for the Russian entry into the WTO and signed the final deal on November
18, 2006 at the Asia-Pacific Economic Cooperation Summit in Hanoi. The agreement
includes pledges by Russia to lift restrictions on imports of the US beef and
pork, and crack down on intellectual property violations. WTO negotiations between
the two nations had stalled for years over disagreements regarding Russia's import
terms for US' agricultural produces; its reluctance to open up its financial services
markets and its poor performance on fighting piracy and counterfeiting. The US
trade representative officials cautioned that Russia had not yet cleared all hurdles
on the way to the WTO entry, and they would continue to press the Russian authorities
for stronger commitments during the multi-lateral stage of the accession process.
Russia still has to reach a bilateral agreement with Costa Rica and confirm agreements
with Moldova and Georgia which could be complicated by its tense relations with
Tbilisi and complete multilateral talks. Furthermore, it is anticipated that the
Republicans' defeat in the 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.
Russia
started negotiating its terms of entry into the WTO in 1993 and since its President
Vladimir Putin came to power, he has pushed for membership in the world body as
a foreign policy tool. WTO membership would boost Russia's economy by increasing
trade opportunities with international partners. Russia already has a major role
in the international community with its veto-wielding permanent member status
on the UN Security Council. For the WTO, the Russian membership would boost the
relevance of the organization that has become bogged down in the Doha Round of
trade talks.
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