RUSSIA, US TO CONCLUDE WTO ACCESSION DEAL

Russia and the US are ready to sign a bilateral agreement on the former's accession to the WTO, trade officials from both countries indicated on 10 October. After 13 years of negotiations, they will formally sign the accord at the 18-19 November Asia-Pacific Economic Cooperation (APEC) summit in Hanoi. The agreement will remove one of the last major obstacles for Russia to complete its WTO accession bid.

Russia is the largest world economy still outside of the WTO. The US had been the last major WTO Member with which Russia needed to conclude a bilateral entry agreement. Moscow's talks with Costa Rica, Moldova and Georgia are still in the works, with the latter two subject to political tensions (see BRIDGES Weekly, 25 October 2006). After finalising all of its bilateral market access deals, Russia will still need to finish multilateral negotiations in the WTO working party on its membership in order to complete its package of accession agreements.

Negotiations had been stalled over Washington's dissatisfaction with Russia's market access for US meat exports, liberalisation of financial services, and commitment to combating counterfeiting and piracy. On 10 November, however, both US Trade Representative Susan Schwab and Russian Economic Development and Trade Minister German Gref said that the two nations had agreed "in principle" to all the terms of an agreement.

The US has already stated that it plans to coax further commitments from Russia during the multilateral accession process, especially in the field of intellectual property rights.

Even after Russia completes its accession negotiations, the US Congress will have to permanently normalise trade relations with the country in order for US producers to fully benefit from its new liberalisation commitments. Some analysts speculate that the newly Democratic Congress may be reluctant to rescind a 1975 law that subjects Russia's trading status to annual review.

"EU Welcomes Russia-US WTO Deal, but Urges Amendments," MOSNEWS, 13 November 2006; "Russia and US Reach Deal on WTO," THE FINANCIAL TIMES, 10 November 2006; "Russia and US 'Reach Deal on WTO'" REUTERS, 10 November 2006; "Russia, U.S. Could Sign WTO Deal in Vietnam Next Weekend," RIA NOVOSTI, 13 November 2006; "US and Russia Work to Finalize Bilateral Negotiations," USTR NEWS RELEASE, 10 November 2006.