April 18, 2024

W.T.O. Grants Russia Membership

GENEVA — Global trade ministers on Friday approved Russia’s bid to join the World Trade Organization, giving Prime Minister Vladimir V. Putin a victory on the international stage at a time of rising domestic opposition to his hold on power.

The Nigerian trade minister, Olusegun Olutoyin Aganga, struck a gavel to announce that the W.T.O. trade ministers’ meeting here had accepted the bid. Because the organization operates by consensus, Russia had to first reach bilateral agreements with 57 of its current 153 members to secure their support.

“This result of long and complex negotiation is favorable both for Russia and for all our future partners,” President Dmitri A. Medvedev said in a statement read to the conference by the first deputy prime minister, Igor I. Shuvalov. He called on world leaders to continue working for freer and fairer trade, adding: “Russia is ready to contribute as much as possible into this work.”

The W.T.O. sets the rules governing global commerce and provides a forum for resolving disputes. Membership ends the anomaly of having Russia, a leading oil and natural gas exporter as well as a permanent member of the United Nations Security Council, outside the world trade system. Russia, with a population of 140 million, is the last major world economy to join the organization. The W.T.O. says that with Russia’s accession, more than 97 percent of all world trade will take place among member countries. It had been about 95 percent.

Pascal Lamy, the W.T.O. director general, said that the agreement would “cement the integration of Russia into the world economy” and that it “affixes the W.T.O. quality label to the Russian Federation.” Likening Russia’s long journey to membership to a marathon, he also warned that “once you cross the finish line, attention immediately changes to the future, to implementation.”

Mr. Putin can point to joining the W.T.O. as a sign that Russia is taking a bigger role on the global stage, even as his government confronts signs of burgeoning political discontent in the country’s large cities. During an interview, Andrei A. Slepnev, the Russian official who oversaw the negotiations, credited Mr. Putin and Mr. Medvedev for getting the deal done, and noted that Mr. Putin had referred to it Thursday as “a victory for Russia.”

In seeking membership, Moscow has had to bring its laws into conformity with W.T.O. rules, but it stands to gain as much as one percentage point in annual economic growth, according to some estimates. Membership is also expected to shine light on the regulations and corruption that dog the Russian economy.

Other W.T.O. members will benefit from a near-term reduction in tariffs on their exports once the lower house of Parliament, the Duma, ratifies the deal.

But businesses in the United States will remain captive for now to the Jackson-Vanik amendment, a relic of Cold War politics, under which U.S. trade with what was then the Soviet Union was tied to the Kremlin’s willingness to allow Jewish emigration.

On Thursday, the administration of President Barack Obama filed a letter with the W.T.O. saying it could not offer so-called permanent normal trade relations with Russia; Moscow in turn said it would not extend such treatment to the United States. America has issued similar letters in the case of other nations, including Romania and Vietnam, only to have Congress give its approval to improved relations weeks later.

The Obama administration has called for the repeal of Jackson-Vanik, saying trade with Russia would have a positive effect on its human rights record. The law is in conflict with U.S. international obligations, as W.T.O. rules require that nations extend most-favored nation status to all members. Asked if he thought the amendment would prove a lasting impediment to U.S.-Russian trade relations, Ron Kirk, the U.S. trade representative, said, “We hope not.”

Mr. Slepnev said the Jackson-Vanik obstacle was “a technical question. We believe the American administration will work out an agreement with Congress in the next half-year.”

Article source: http://feeds.nytimes.com/click.phdo?i=93146e1d2ae8a4edd744bab40c4820b6