AMID NEW TALKS, RUSSIA COULD COMPLETE WTO ACCESSION THIS YEAR

Hoping to complete WTO accession negotiations as soon as possible, Russian negotiators held a series of bilateral and multilateral talks in Geneva this week.

Russian officials met with representatives from Saudi Arabia, the United Arab Emirates, and Georgia to discuss bilateral trade relations. WTO accession procedures require applicant countries to sign bilateral agreements with any Member that wishes to do so, with the deepest concessions thus agreed extended to the rest of the WTO Membership. Russia signed a deal with Georgia in 2004, but Tbilisi threatened a veto after a border trade dispute.

The Russian government hopes to wrap the process up before Ukraine gains the status of a full Member, possibly by this summer. Relations between Kiev and Moscow are tepid at best, and as a full Member, Ukraine, whose accession package was accepted by WTO Members this month, would have the ability to request a bilateral deal of its own, prolonging Russia's accession talks. As with most WTO decisions, any single Member would be able to block Russia's accession.

A separate obstacle in Russia's accession process is its ongoing disagreement with the EU over timber duties - EU member state Finland has complained of rising prices of timber due to export duties. EU Trade Commissioner Peter Mandelson, speaking in Moscow last Friday after two days of meetings with Russian officials, announced that timber was the last major hurdle that the two parties must overcome, after signing a bilateral deal in 2004.

Mandelson insists that the EU will not allow its companies to be hurt by Russian export tariffs. The two countries plan to meet again next month to continue discussions.

Mandelson also expressed the belief that Russia could join the WTO this year, provided that no new countries make unreasonable demands. "We've got to makes sure that the requests being made to Russia are proportionate and reasonable," he said, reports Reuters.

The EU trade chief noted that WTO membership for Russia would benefit others. "Frankly, we want to see Russia in the WTO, it's the largest economy of its size and importance outside of the organisation, there are benefits, substantial benefits, both for Russia and its trading partners to see Russia in the WTO," he said.

The EU hopes to begin free trade agreement negotiations with Russia after it joins the WTO; it launched on a similar deal with Ukraine this week.

ICTSD reporting, "EU's Mandelson says backs new Russia WTO Bid Push," REUTERS, 15 February 2008. "Ukraine PM won't Hinder Russia's Bid to Join WTO," AGENCE PRESS FRANCE, 20 February 2008.

BRAZIL, EU IN SPAT OVER BEEF IMPORTS

Discussions between the EU and Brazil to resolve a spat over beef imports came to a halt last week, after Brussels rejected a second list of cattle farms that Brazil claimed met EU health standards.

The EU banned all Brazilian beef imports on 31 January, after declaring in December, following complaints from Irish farmers, that it would only accept imports from farms that met new EU guidelines.

Citing concerns with Brazil's current traceability systems and sanitation guidelines, Brussels imposed the ban after deeming a list of 2681 farms submitted by Brazil to lack clear data and farm audits.

Brazil admitted last week to having exported both inspected and un-inspected beef to Europe, including Beef that was still in transit after 1 February, when the new guidelines entered into force.

On 14 February, Brazil sent a revised list of 600 farms to Brussels. However, it was rejected the next day. There is speculation as to why the EU acted so quickly, but one generally accepted reason is that it has said that it will only allow up to 300 exceptions for Brazilian farms, after traceability and veterinary standards have been certified. Brazil argues that this number is arbitrary, and violates WTO rules on quantitative import restrictions.

The European Commission insists that the ban is only temporary, and it has agreed to send an EU Food and Veterinary Organization commission to Brazil on 25 February in order to assure that complete farm audits are taking place.

European farming organisations were pleased with the ban, and have asked that it continue until full audits of all Brazilian farms can be accomplished.

Meanwhile, European importers are concerned with rising prices and possible shortages, though EU agriculture spokesman Michael Mann says that the EU has plenty of domestic and foreign suppliers ready. Many agricultural analysts forecast a rise in prices, at least in the short term.

Brazil argues that the ban is purely commercially motivated, as EU farmers try to gain market share after European BSE and hoof-and-mouth disease scares. Brazilian beef costs about $1 per kilo, which is about half the cost in the US and a third the cost of European beef.

Earlier this month, Brazilian WTO Ambassador Clodoaldo Hugueney threatened to challenge the beef import ban at the WTO. Following Brussels' rejection of the second list, Celso Amorim, Brazil's foreign minister has suggested that he too would support taking the ban to the global trade arbiter.

ICTSD reporting; "Brazil Sold Beef That Wasn't Inspected to the EU, O Estado Says," BLOOMBERG, 14 February 2008; "Brazil admits exports of uninspected beef to EU," XINHUA, 14 February 2008; "Brazil offers EU new farm list in bid to get beef ban lifted," EUBUSINESS, 7 February 2008. "Stand Firm on Brazilian Beef Ban, EC urged". UK DAILY POST, 15 February 2008.