🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

Russia and allies edge to joint but separate bid

Published 10/15/2009, 09:08 AM
Updated 10/15/2009, 09:12 AM

* Russia, Kazakhstan, Belarus to clarify WTO bid plans

* Joint negotiations, separate accessions possible

By Jonathan Lynn

GENEVA, Oct 15 (Reuters) - Russia, Belarus and Kazakhstan's efforts to join the World Trade Organisation as a single customs union are likely to produce coordinated negotiations but could still see separate accessions, trade officials said on Thursday.

The three former Soviet states have called a meeting of WTO members for Thursday afternoon to discuss their plans, which may result in a face-saving climbdown.

"I don't see a problem with the three of them coordinating their work -- that's their call," Stefan Johannesson, the Icelandic diplomat chairing Russia's WTO accession negotiations, told Reuters.

But trade officials said it was by no means clear that the three states, which will form a customs union from Jan. 1, 2010, would enter the WTO simultaneously as they have pledged.

Whether or not that happens was likely to emerge from Thursday's and subsequent meetings.

Russia is by far the biggest economy still outside the 153-member WTO and has been trying to join for over 16 years.

Frustration at the drawn-out talks, which many in Moscow put down to political considerations, has often boiled over, with officials suggesting that Russia may not join at all, or that the WTO needs Russia more than Russia needs them.

PUTIN'S PROPOSAL

However, only days after EU and U.S. officials spoke of Russia finally getting in this year, Prime Minister Vladimir Putin threw the talks into turmoil by announcing on June 9 that Russia would only enter the WTO together with its two neighbours whose own accession negotiations are far behind Moscow's.

The move aimed to bolster the future customs union, part of Russia's strategy of strengthening ties with other former Soviet states, and may also have been an attempt by Putin to regain the initiative in the talks.

"It's a reflection of their domestic politics, I guess," said one senior trade official, acknowledging that the proposal has become a little clearer in the intervening months.

There is no precedent for a customs union to negotiate joint membership, and WTO members were perplexed by the legal implications.

Kazakhstan's chief WTO negotiator, Zhanar Aitzhanova, added some clarification last week when she said the three states could adopt a twin-track approach. [ID:nN07490571]

They could negotiate as a customs union on issues such as the common external tariff that the union would be responsible for, but on other questions such as services and sanitary rules continue to negotiate separately, she told Reuters on Oct. 7.

But Johannesson said on Wednesday that the joint approach could seriously delay Russia's accession. [ID:nBFA000961]

For instance Russia would have to wait while Belarus and Kazakhstan catch up in areas already agreed by Moscow.

And if the customs union -- which itself is still evolving -- takes a different line on such questions, Moscow would have to reopen them and start afresh.

The WTO accessions process requires candidates to negotiate both with individual members bilaterally, and with the WTO as a whole, represented by a working group of interested countries which any existing member can take part in.

That gives not only a decisive say to major trading powers like the United States and European Union, but an effective veto to every member.

So even when the details of the customs union are worked out, Russia and other WTO members will need to convince Georgia, with whom Russia fought a war last year, to let Russia in.

Georgia has blocked formal work on Russia's candidacy, arguing that Moscow's support for breakaway Georgian regions involves illegal interference with customs posts on its internationally recognised border, but is allowing negotiations to proceed informally.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.