| The failure of the WTO conference played into Russia's hands The WTO conference in Cancun, Mexico ended inconclusively. This is the general assessment of both the participants of the concluded forum and the experts and journalists who closely followed it. Rich and less developed countries could not agree on a number of key issues related, for example, to the preservation of agricultural subsidies in the US and EU, measures to combat bureaucracy and corruption. The disappointing results of the forum were summed up by EU Commissioner for Foreign Trade Pascal Lamy. According to him, at the conference in Cancun, “everyone was a loser.” According to a number of analysts, contradictions within the WTO may even lead to the creation of regional trading blocs.
However, for Russia, which participated in the conference as an observer, there is a result, and a positive one. The fact is that the WTO in the current situation will be extremely difficult, almost impossible, to develop new conditions for membership in this organization within the previously stated time frame - before the beginning of 2005. This means that Russia should no longer rush to join the WTO under current rules by the end of 2004 - a deadline that has been repeatedly cited by Russian officials as a guideline.
This period, by the way, was determined, among other things, because of the threat of changing the “rules of the game.” For Russia, of course, it is much preferable to participate in the development of new conditions for participation in the WTO, rather than test them for itself upon accession.
The delay plays into Russia’s favor also because we have so far failed to defend positions that are fundamental to us in the negotiations. The European Union, for example, continues to insist on unifying energy prices. Also, discussions around the access of Western companies to the Russian market of telecommunications, financial, banking and insurance services, government support through duties and subsidies for the domestic auto and aviation industries, agriculture, and a number of other industries have not moved forward.
Moreover, during the negotiations, some countries are putting forward new demands in an attempt to secure additional benefits for themselves in trade with Russia. As a source close to the WTO negotiations told the Vremya Novostey newspaper, during the meetings in Cancun this is exactly how China behaved (the source, however, did not name specific Chinese initiatives). Now, apparently, this topic will become one of the main topics at Prime Minister Mikhail Kasyanov’s meetings in Beijing. He plans to leave for a visit to China next week.
The results of the conference in Cancun were commented on by the head of the RSPP working group on accession to the WTO, CEO of the Severstal Group holding, Alexey Mordashov, in the Vremya Novostey newspaper:
- Even before the start of the conference, observers assumed that it would be possible to reach an agreement, but by the end of the negotiations it became obvious that it would not be possible to reach an agreement. This means that negotiations on new WTO rules will not begin by the end of next year. However, despite this, I do not believe that today we can talk about an insurmountable crisis in the WTO. The crisis will be overcome one way or another, and Russia should have the opportunity to influence on the development of world trade rules on an equal basis.
I hope that during the negotiations on Russia's accession to the WTO, the European Union, in particular, will take a more constructive position on a fundamental issue for us - the equalization of Russian energy prices. Moreover, Europe is in a similar situation regarding agricultural subsidies - they need time to reform their agriculture. We argue our position in the energy sector in exactly the same way. Mikhail VOROBYEV |
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