October 25, 2006

Russia's WTO deal with US still possible in near term

A top Russian cabinet official said Tuesday (Oct 24) that a bilateral deal with the US on Russia's membership into the World Trade Organization could still be signed this month despite continuing differences, Russian news reports said.

Deputy Prime Minister Alexander Zhukov voiced hope that negotiators could reach a compromise on the last remaining stumbling block--the issue of US meat exports to Russia.

"I think a solution to this issue will be found," he said, adding that the talks still could be completed by the end of the month, the Interfax and RIA Novosti news agencies reported.

Russia had earlier hoped to sign a bilateral agreement with Washington as the centrepiece of the Group of Eight Summit, which it hosted in St Petersburg in July, but talks foundered over sanitary inspections for US beef and pork imports.

Russia had refused a US demand for an immediate increase in imports of American beef and pork before Russia completed a review of the US food-inspection system, due to be finished this month.

Russian officials said the question of Russia's record on enforcing intellectual property legislation, a key long-time obstacle to Russia's WTO bid, was no longer an impediment to signing the bilateral agreement.

Russia is the largest economy outside the 149-member WTO and has been negotiating for over a decade to join. Even in the event of a swift deal with the US, observers have suggested that multilateral talks are at least two years from completion.