Russia has chance to join WTO in 2006 -EU

source:
http://news.yahoo.com/s/nm/trade_europe_russia_dc

MOSCOW (Reuters) - Russia has a window of opportunity in the next few months to secure entry to the World Trade Organization (WTO), but must improve government coordination to do so, a senior     European Union official said on Monday.

EU Trade Commissioner Peter Mandelson told reporters on the eve of a Russia-EU summit in Moscow that the current pace of talks was "creating a possibility of final entry in early 2006."

"Russia needs to take advantage of a window between now and the summer to get the accession tied down," Mandelson said, adding that EU negotiators would be increasingly preoccupied by the Doha round of global trade talks later in the year.

Russia is the largest trading nation yet to join the Geneva-based WTO.

"If it is going to be achieved we are looking at a tight timetable, stepping up the pace of negotiation and intensifying in particular coordination among government departments," Mandelson added.

He said President     Vladimir Putin, who will attend Tuesday's summit, should step in to ensure Russia's position in the talks was effectively managed.

"The president should consider playing a bigger role," said Mandelson. "My sense is the negotiations are moving to a closing stage. It requires much stronger coordination in the Russian government to reach the closing stage."

Russia has to strike deals with all WTO members in order to be admitted to the trade club. Moscow has yet to reach agreement with the United States, with financial services and intellectual property rights the key stumbling blocks.

SIBERIAN OVERFLIGHT CHARGES

The EU struck an umbrella deal with Russia a year ago on entry into the WTO, but the two sides are still haggling over loose ends such as royalties levied on international airlines flying over Siberia.

Brussels is also pressing Moscow to get rid of rail charges it believes discriminate against Baltic states that have recently joined the 25-nation bloc.

Mandelson praised Economy Minister German Gref as an able counterpart in the trade negotiations but suggested that other government departments were dragging their feet.

"In every meeting I find him very focused on all the key elements and able to speak from the Russian point of view in a very articulate way," he said.

"Not all issues belong to that minister, they belong to other ministries," he added, but did not elaborate.

He said it was important for Moscow to "bring the combined Russian view together and to make sure the government as a whole moves forward at the same pace."

Mandelson said part of Russia's business community was worried that joining the WTO would unleash tough competition. "They are looking to the short term and to vested interests they would prefer to be protected," he added. Joining the WTO would help strengthen the investment climate in Russia, said Mandelson, although other measures are also needed to attract overseas finance. Business confidence has been badly shaken by a campaign by the Kremlin to break up YUKOS, formerly the country's largest private oil company, and return one of its largest businesses to state ownership.

"Foreign investor confidence needs certainty and predictability in relation to the legal system and enforcement of non-discriminatory legislation," Mandelson said.

Rumors in Washington--don't you love that phrase--say that the hardliners in the adminstration want to prevent Russia from getting into the WTO unless they bring back the liberties that Russian has been slowly lossing ever since Putin got into power.

At the same time, Bush loves Putin, and Putin can play Bush as a violin.

This is going to be fun to watch