Russia clears
key WTO hurdle , November 10th, 2011
A World Trade
Organization panel has approved a package of proposed reforms for Russia,
clearing the way for the country to join the group after 18 years of
negotiations.
The WTO said
Thursday that Russia’s bid will now go before a meeting of all 153 members in
December, where it is expected to get final approval.
The reforms
include a cap on tariffs and a provision allowing foreign banks to establish
subsidiaries in Russia.
The approval
comes a day after Russia signed a key
agreement with Georgia, which includes independent monitoring of all trade between the two countries,
including Abkhazia and South Ossetia.
The issue had stalled an agreement because of Tbilisi’s insistence that Russia
provide access to trade information in the two breakaway regions.
Russia
supports the two separatist regions, and Russia and Georgia fought a
brief war over the dispute in 2008.
The White
House said U.S. Vice President Joe Biden congratulated Georgian President
Mikheil Saakashvili on the agreement, saying it is a historic step that could
help reduce tensions in the region.
Georgia had been the
only obstacle to Russia’s membership in the WTO. Under WTO rules,
any one of the members can block a new country by vetoing it. Georgia has been
under pressure from the United States and the European Union to allow Russia to
join.
Yawn…Russia’s 18 Year Quest for WTO membership is Almost Over
by Julian
Ku November 10th, 2011
Russia will
become the last of the “BRICs” to join the WTO (assuming the U.S.
Congress will play ball, which I assume it will since Russian imports threaten
no U.S. industries, and Russia has enjoyed low tariff status in the U.S. since
1992 anyway).
What is the
significance of this? Short term, it is not a very big deal.
Russia is not currently one of the world’s most dominant economic players, but
it obviously has a very important long-term role in the world economy. And
Russia is agreeing to subject itself to WTO rules for trade and
investment, which may revive foreign interest in doing business
there. A big moment for the WTO, though, that has received very little
attention as other big news (the euro crisis) has overshadowed.
