The Geneva-based World Trade Organization (WTO) has sealed the deal for Russia’s acceptance as a full-fledged member of the 153-member trade body when it comes up for a vote at the WTO ministerial meeting December 15-17.
A major hurdle was overcome in October, in a Swiss-brokered deal, when Georgia dropped its objection to Russian membership following the bloody confrontation between the two countries in 2008. In the following weeks an agreement was reached to allow international monitoring of trade through two Russian-controlled enclaves inside Georgia.
Following final approval by a WTO working group (November 10), Moscow’s chief negotiator, Maxim Medvedkov said “it is gratifying to see that after 18 years of sometimes uneasy negotiations the process of WTO accession is completed.”
WTO Director-General Pascal Lamy also referred to the long negotiations, saying in a statement, “It has been a long journey, but today Russia has taken a big step towards its destination of membership in the WTO…This win-win result will bring Russia more firmly into the global economy and make it a more attractive place to do business.”
Russian membership, when formally completed, will reduce the country's average maximum import tariff rates to 7.8% from 10%, the WTO said. Russia has also agreed to open up its banking system to 50% foreign ownership and to allow branches of foreign insurance companies to be set up nine years after its accession to WTO in 2012.
With the world’s largest reserves of oil and natural gas, Russia is the biggest economy in the G20 and according to the World Bank, joining the WTO could boost its $1.5 trillion economy by more than 3 percent in the medium term.
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