Russia on verge of WTO entry
Source: Agencies |
November 4, 2011, Friday
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RUSSIA is on the verge of ending its 18-year wait to join the World Trade Organization after accepting a trade deal with Georgia, the last big obstacle to membership of a club that will seal its integration into the global economy.
Russia's accession will be the biggest step in world trade liberalization since China joined a decade ago, making its US$1.9 trillion economy more attractive to investors.
After nearly two decades of tortuous negotiations with the 153-member club, Russia's last challenge was to reach a deal with Georgia to stop its entry being blocked by the former Soviet republic with which it fought a short war in 2008.
Russia's top negotiator said late on Wednesday that Moscow had accepted the terms of a compromise deal proposed by Tbilisi on monitoring mutual trade, and a Georgian negotiator yesterday said he expected the agreement to be signed within a week.
"We are happy that Georgia supported the draft agreement and that finally an agreement has been reached," Russia's WTO accession negotiator Maxim Medvedkov said.
Georgian Vice Foreign Minister Sergi Kapanadze, whose country does not have diplomatic relations with Russia, told Interfax news agency: "Everything should reach its conclusion ... by November 10."
This is the date for a meeting of a WTO working group which can then draw up a final document for approval by WTO trade ministers in Geneva on December 15.
Entry also needs the approval of the Russian parliament, which is likely before an election in March that is expected to return Prime Minister Vladimir Putin to the presidency.
Russia's entry will secure membership of the biggest economy still outside the WTO and send a signal to companies and investors that Russia is starting to move closer to a rule-based system of doing business.
The World Bank said WTO entry could increase the scale of the Russian gross domestic product by 3.3 percent in the medium term and 11 percent in the long term.
Chris Weafer of Troika Dialog investment bank said: "WTO membership will have no immediate impact on economic growth, the day-to-day operations of Russia's corporations or on the risk premium investors apply to investment in the country.
"However, membership does establish a powerful catalyst for a more serious approach to creating economic reform and industry efficiency."
Russia's accession will be the biggest step in world trade liberalization since China joined a decade ago, making its US$1.9 trillion economy more attractive to investors.
After nearly two decades of tortuous negotiations with the 153-member club, Russia's last challenge was to reach a deal with Georgia to stop its entry being blocked by the former Soviet republic with which it fought a short war in 2008.
Russia's top negotiator said late on Wednesday that Moscow had accepted the terms of a compromise deal proposed by Tbilisi on monitoring mutual trade, and a Georgian negotiator yesterday said he expected the agreement to be signed within a week.
"We are happy that Georgia supported the draft agreement and that finally an agreement has been reached," Russia's WTO accession negotiator Maxim Medvedkov said.
Georgian Vice Foreign Minister Sergi Kapanadze, whose country does not have diplomatic relations with Russia, told Interfax news agency: "Everything should reach its conclusion ... by November 10."
This is the date for a meeting of a WTO working group which can then draw up a final document for approval by WTO trade ministers in Geneva on December 15.
Entry also needs the approval of the Russian parliament, which is likely before an election in March that is expected to return Prime Minister Vladimir Putin to the presidency.
Russia's entry will secure membership of the biggest economy still outside the WTO and send a signal to companies and investors that Russia is starting to move closer to a rule-based system of doing business.
The World Bank said WTO entry could increase the scale of the Russian gross domestic product by 3.3 percent in the medium term and 11 percent in the long term.
Chris Weafer of Troika Dialog investment bank said: "WTO membership will have no immediate impact on economic growth, the day-to-day operations of Russia's corporations or on the risk premium investors apply to investment in the country.
"However, membership does establish a powerful catalyst for a more serious approach to creating economic reform and industry efficiency."
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