U.S. OKs Russia's Entrance To WTO
Moscow and Washington reached a bilateral accord Friday on Russia's entry into the World Trade Organization, a major step in Russia's 12-year bid to join the powerful 149-nation body that sets the world's international trade rules.

"We have an agreement in principle and are finalizing the details," said U.S. Trade Representative Susan Schwab, the chief U.S. negotiator in WTO talks with Russia. "This agreement will mark an important step in Russia attaining membership in the WTO."

Schwab said the agreement is slated to be signed next week at the Asia-Pacific Economic Cooperation Forum in Hanoi, a summit that both President Bush and Russian President Vladimir Putin are scheduled to attend.

Russia is the world's only major economy that does not belong to the WTO. Membership would shield its exports from arbitrary penalties imposed by other nations and ease the flow of American capital and expertise into its economy. American and European firms would enjoy greater access to Russian markets ranging from aircraft and agriculture to financial services.

Getting U.S. approval marked a crucial step in Russia's bid for membership. To join, Russia must gain the approval of each current WTO member through bilateral talks. The U.S. had been the only major member nation yet to agree to Russia's inclusion.

For years, WTO negotiations between the U.S. and Russia were slowed by Washington's concerns about Russia's poor track record in improving intellectual property rights, import terms for agricultural products and the Kremlin's reluctance to open up access to Russian financial services markets.

Russia had hoped that an agreement could be reached before Putin hosted the Group of Eight summit of leading industrialized nations in St. Petersburg in July. Those talks broke down, however, and afterward Russia decided it would keep major U.S. oil companies out of a multibillion-dollar natural gas development project in the Barents Sea, a move analysts linked to the WTO impasse.

The exact terms of the agreement were not released Friday. Schwab called the accord "a clear indication of Russia's efforts to participate fully in and benefit from the rules-based global trading system."

Even with U.S. approval, Russia still needs to hammer out bilateral agreements with Moldova and Georgia, both of which were hit hard by Russia's decision to ban wine exports from their countries earlier this year.

Georgia might prove the most difficult member nation yet to sign a bilateral agreement with Moscow. Russia's ban on Georgian wine was followed by a slew of economic sanctions against the tiny mountain nation's West-allied leadership, including severing all transport and postal links between the two countries. Authorities also began deporting hundreds of Georgians living and working in Russia, and shut down scores of Georgian-owned firms.

After Russia imposed the economic blockade on Georgia earlier this fall Georgian leaders withdrew their support of Russia's inclusion in the WTO.

If Russia is able to secure bilateral agreements with all current WTO members it still must undergo a separate round of multilateral talks with member states. Some experts say those talks could take as long as two years, though Russian Economic Development and Trade Minister German Gref said Friday that they likely would take about six months.

The Bush administration does not need congressional approval to seal the bilateral agreement. However, Bush still must ask Congress to grant Russia "permanent normal trade relations," a designation that allows U.S. farmers and businesses to benefit from Russia's WTO membership.

The newly elected Congress, which convenes in January, is now controlled by Democrats, who may be more critical of trade pacts with Russia.

Sen. Max Baucus (D-Mont.), who is in line to assume the chairmanship of the Senate Finance Committee, pointed to "unacceptable levels of piracy and counterfeiting" in Russia and said in a statement released Friday that the country "must take additional steps to earn a welcome into the WTO."