It seems Russia has finally managed to clear the last obstacle in its way to join the World Trade Organization (WTO). This follows US’s agreement in principle to approve Russia’s membership in the body after protracted bilateral negotiations and talks.
Both the countries now expect to sign the dotted lines on the WTO accession deal at the Asia-Pacific Economic Cooperation summit starting next week in Hanoi, Vietnam where both the presidents of both the countries George Bush and Vladimir Putin would be present.
Russian hopes to gain entry to the WTO were dashed after negotiators failed to come to an agreement at this years G8 summit in July. At that time, Susan Schwab, US Trade Representative said that though they came close to completing the talks, they needed some more time.
US reservations about Russia’s entry to the organization were based on Russia’s
• human rights record,
• state control over key energy resources,
• intellectual property rights,
• restrictions on the activity of foreign companies have all held up a deal, and
• Russia’s opposition to sanctions against Iran owing to Iran’s nuclear policy.
Russia’s entry to the WTO could have far-reaching ramifications in world trade. Russia is a major oil producing country and outside the OPEC. Besides, as the Russian economy is booming, it will open up many more avenues for foreign countries for both to and fro business. Plaguing issues of intellectual properties can also be addressed and Russia can also be held accountable for many of its ‘free-market’ policies as some major decisions are still dictated from the Kremlin. It might also pave the way for dissident voices in Russia to gain more freedom as trade and commerce is a big lever to maneuver politics.
News: BBCNews.com
