Translated material
Checkpoints
Russia will join the WTO if Georgia does not stop
For Russia, the most important result ofthe Hanoi APEC summit was, without a doubt, the signing of a protocol with the United States on the end of negotiations on the World Trade Organization. Minister of Economic Development and Trade German Gref even took as a souvenir a silver pen with the inscription “American-Russian WTO Agreement” with which he signed the protocol. And the presidents of the two countries exchanged the kindest words. “A positive step has been taken both for our countries and for the world community in general,” said US President George W. Bush. “This would not have been possible without goodwill, professionalism and a highly business-like approach. This would not have been possible without the political will of the US President,” Russian President Vladimir Putin said in response.Experts tend to associate the end of the negotiations with the political aspect of relations between the two states. There is an opinion that George Bush exchanged his consent for Russian support in the fight against the nuclear programs of the countries of the “axis of evil” - Iran and North Korea. This theory was indirectly confirmed by the American president himself. “The dialogue that took place between us was very important. We also touched upon the problem of North Korea and Iran,” he noted after his meeting with Vladimir Putin. “I agree with you, George, that this document creates a favorable background for resolving all issues, including pressing global problems,” Mr. Putin also said. Meanwhile, answering a question from Vremya Novostei, Mr. Gref dismissed all suspicions that George Bush “gave up” due to the Republicans’ loss in the last elections. “All fundamental agreements were reached on November 6,” the minister said.
“We expect that by the next APEC summit in 2007, Russia will already be a full member of the WTO. This is a real forecast,” said First Deputy Foreign Minister Andrei Denisov. The head of the Ministry of Economic Development, German Gref, also expects that multilateral negotiations, and this is the last stage before joining the WTO, will be completed by July next year.
True, in the euphoria, all participants forgot that there are several more obstacles on the way to the long-awaited entry that could significantly delay this process. In addition to the president, the US Congress must also give its consent. And this agreement after the victory of the Democrats in the US elections is not so obvious. In addition to approving the protocol, Russia hopes that Congress will finally repeal the Jackson-Vanik Amendment. US Trade Representative Susan Schwab said: “Before Russia becomes a member of the WTO, the United States would like to enact legislation establishing the status of permanent normal trade relations,” which implies the repeal of this amendment.
In addition, the United States, although the most important, is not the only country with which negotiations have not been completed. There are also Russia's former neighbors in the USSR - Georgia and Moldova. And if official Chisinau has not yet commented on the fact of signing the protocol with America, then Tbilisi has already said its decisive “no”.
As Deputy State Minister of Georgia for Coordination of Reforms Vakhtang Lezhava told reporters yesterday, “information in the Russian media that Georgia will allegedly support the issue of Russia’s accession to the WTO is aimed at the local consumer.” According to him, Georgia will give its consent only if a specific condition is met, namely the resolution of the issue of illegal customs checkpoints in Abkhazia and the Tskhinvali region.
“Attempts to influence trade issues through political methods are not perceived very positively by us and our partners,” Mr. Gref commented on Georgian claims. True, he still expressed hope that “in the near future we will be able to reach resolutions and agreements with Georgia.” Moldova did not deserve this either. Negotiations with her will be conducted only within the framework of multilateral meetings.
In addition, there is a danger that if Ukraine manages to join the WTO before Russia, then it may also put forward its demands on Russia.
The agreement concluded with the United States covers as many as 100 sectors of the economy. Russia, in particular, will have to reduce the weighted average tariff rates on industrial goods and agricultural products by 3%. The Russian side allows the import of agricultural products with the right to inspect American enterprises. It is worth remembering that it was the issue of veterinary certificates for beef and pork that stalled the negotiations in July. In addition, we agreed on a fairly significant reduction in duties on medicines, medical equipment, electronics, and computer equipment. An agreement was reached on the terms of gradual liberalization of the automotive sector and a gradual reduction in duty rates on aviation equipment. The parties reached an agreement to liberalize access of American companies and banks to financial markets.
In addition to the protocol, six exchange letters were signed in the field of veterinary and phytosanitary regulations, protection of intellectual property rights and access to the Russian market for Western encryption equipment.