cockfight

Russia received a response from the United States to the “chicken ultimatum”

The “chicken issue” could make it much more difficult for Russia to join the World Trade Organization than Economic Development Minister German Gref expected, threatening to cancel all preferences for meat supplies for Washington (see Vremya Novostey, August 18) . Now, in the “meat” scandal, Washington has seized the initiative, promising that limiting meat supplies will significantly complicate efforts to complete bilateral WTO negotiations.

Two weeks ago, German Gref sent a letter to US Trade Representative Susan Schwab in which he warned that Moscow is ready to cancel Washington's benefits for the import of American meat to Russia and remove all obligations on meat supplies if the protocol on Russia's accession to the WTO is not signed United States within three months. In addition, Mr. Gref allowed himself in this letter to criticize a geopolitical scale, recalling that the WTO is in a deep systemic crisis, which arose due to the breakdown of multilateral negotiations on agriculture. And the negotiations broke down due to the fault of the United States.

In response to the ultimatum, the US Trade Representative stated that if Russia decides not to comply with previously reached agreements, this will create serious problems in completing negotiations on Russia's accession to the WTO. Washington, for its part, does not believe that Russia provides meat preferences to the States, since supplies of American meat are part of agreements reached with many countries.

Both countries, having exchanged “meat” claims on such a high note, have something to lose with the further development of the conflict. If Russia really moves from intimidation to action, then American producers could lose about 40% of the poultry market, which was guaranteed to them by the agreement concluded last year between Russia and the United States “On Trade in Certain Types of Poultry, Beef, and Pork.” According to the agreement, the meat import quota was to increase every year, and by 2009 the United States would be able to supply 931 thousand tons of broilers instead of 743 thousand tons last year.

For Russia itself, additional complications in the WTO negotiations will not add points either. The decision on the timing of Russia's admission to the World Trade Organization depends only on the United States, which was once again confirmed by the July round of negotiations at the St. Petersburg G8 summit. Among countries that have not joined the WTO, Russia shares the bench with Ukraine and Belarus. Theoretically, a conflict with the United States is also dangerous because the United States may raise the question of Russia's membership in the G8. The United States will also have economic levers with which it can try to stand up for its meat producers. America can present counterclaims to Russia by imposing sanctions on the import of Russian rolled metal, as was the case several years ago, when, during the signing of a comprehensive steel agreement, Moscow also tried to blackmail the American side with chicken legs.

Finally, we should not forget that the ill-fated Jackson-Vanik amendment (which the United States promises to abolish in relation to Moscow after Russia joins the WTO) has not yet been canceled by America. There is only a moratorium on it, which is extended every year. If the moratorium is not extended, Russian exports to the United States will be significantly hampered.

Irina SKLYAROVA