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Russia should meet all WTO standards

Russia should meet all WTO standards
April 5, 2007
Carlos GUTIERREZ, US Commerce Secretary

-- One of the most controversial recent incidents concerns the problems experienced by PricewaterhouseCoopers, which might lose its operating license in Russia. Have you discussed this matter with Russian officials? Is the US government attempting to influence the outcome in any way?

-- We expect that Russian laws will be applied consistently, regardless of what company is involved, where it's from, or who its clients are. Of late, there has been an impression that laws in Russia are applied selectively. But I wouldn't comment on this particular case in court.

-- The PricewaterhouseCoopers case is directly connected to the YUKOS case. Is the US government still keeping track of that story?

-- You know, Russia is a very important country for us. Whatever happens in Russia, we're watching it all. You have the world's tenth-largest economy, and 6% growth. President Putin has raised Russia's role in the international arena. Therefore, US attention to everything happening in your country will increase rather than fade. And this isn't about any particular case. It's a general approach.


-- The Jackson-Vanik Amendment is always discussed at Moscow-Washington talks. Is this a real obstacle in bilateral relations, or only a symbol of disagreements between Russia and the United States, old and new?

-- It's a symbol, of course. The amendment is primarily important for Russian government officials, so we have to take it seriously as well. It's good that in the process of Russia's WTO accession, our Congress should repeal it with regard to Russia. It cannot simply be repealed by the executive branch. We expect this
to happen soon, and I hope that in future, the Jackson-Vanik Amendment will no longer be among our topics of discussion.

-- And when might Congress vote on that? What's your prediction?

-- A specific date depends on Congress regulations. I admit, I don't have a calendar for its agenda. But since we would like Russia to join the WTO in the near future, I think it won't take very long.

-- In the near future - when would that be?

-- We still have to complete all the bilateral issues. Some clear progress is observed, although there are still a couple of things to sort out. We have yet to grant Russia Permanent Normal Trade Relations status. But the most important barrier that Russia needs to overcome is the completion of multilateral
negotiations.

--  Herman Gref has said that Russia should join the WTO by the end of this year.

-- That's a wonderful target! It's very good that Russia has such a target. It should work toward that, and we support Mr. Gref's aspirations.

-- Which issues might be the most problematic in the course of the multilateral negotiations?

-- In my view, the priority is to protect intellectual property rights. Other countries are very interested in agricultural issues. A number of questions may yet be raised by other countries - there are some things I might not know, since each case is different. But the multilateral negotiations will be the most important negotiations for Russia on its path to the WTO.

-- Are you satisfied with how Russia is acting on the bilateral agreement signed last year?

-- Some progress is evident. There are also some incomplete aspects that we are concerned about: protecting intellectual property rights, once again, and agricultural subsidies. But apart from these aspects, progress is evident.

-- So you're not satisified with what Russia is doing in these areas? For example, Prime Minister Fradkov signed another directive last week, regulating software sales. Do you find the Russian government's actions unsatisfactory so far?

-- We acknowledge that Russia is trying. That has to be acknowledged. But it needs to do still more. Work is under way, and it should be continued.

-- Can Russia be admitted into the WTO before it fulfills all obligations undertaken in the course of bilateral or multilateral negotiations? This has happened with many countries, after all: they promised to meet WTO standards in future, and they were granted membership.

-- Yes, there are a great many standards and requirements, they're different, and I won't list them all. It's important for a country to demonstrate that it is prepared to meet them. Russia is the world's tenth-largest economy, but 140 other countries are WTO members already! Russia should be part of the WTO
as well! I'd like it to be an important and active part! And it's very important to everyone that such a huge part of the global economy should meet all WTO standards.

-- So Russia is expected to be prepared to make concessions?

-- WTO membership offers some advantages and rights. Russia is a country with a powerful economy, and it will gain a great deal from joining the WTO and being given access to various markets. But Russia is also required to make some commitments. Moreover, when countries join the WTO, they have to
diversify their economies. Isn't that exactly what President Putin is striving to do?

-- According to your schedule, you were supposed to fly from Moscow to Kiev for a meeting with Prime Minister Viktor Yanukovych and Economy Minister Anatoly Kinakh. Have you cancelled that visit because of the crisis?

-- Yes, that's right. We have postponed that visit. I'm flying back to Washington, not to Kiev.

Editorial
As Russia and the United States prepare for their respective presidential elections, tensions between the countries are growing. The central point of contention is U.S. ballistic missile defense (BMD) plans. Russia has several levers, including its ability to cut off supply lines to the NATO-led war effort in Afghanistan, to use in the standoff over BMD, but the United States could retaliate by supporting the current protests in Russia. Moscow is willing to escalate tensions with Washington but will not push the crisis to the point where relations could formally break.
Keyur Patel
High quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the article. See our Ts&Cs and Copyright Policy for more detail. Russia released a preliminary estimate for 2011 GDP growth on Tuesday - and at 4.3 per cent, it looks pretty healthy. The figure crept ahead of analyst expectations, buoyed by a strong recovery in consumer demand over the year, while 2010 growth was revised upwards, also to 4.3 per cent. Renaissance Capital was cautiously bullish, calling the forecast 'reason for a (modest) celebration'.
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