EU, Moscow strike deal on Russia joining WTO

The European Union and Moscow have agreed terms for Russia to join the World Trade Organisation, leaving a bilateral agreement between Russia and Georgia as the only outstanding issue to resolve, the EU's trade chief said on Friday. A deal had been reached that would help to prevent EU jobs in the car industry from moving to Russia, EU Trade Commissioner Karel De Gucht said in a statement.
The agreement removes the last major trade area that had been hesitant about allowing Russian WTO membership. "We have struck a deal on the final outstanding bilateral issues, leaving the way open for Russia to join the WTO by the end of this year," De Gucht said. "This understanding will help to protect EU jobs in the car and car components industry."
Though Russia has been negotiating to join the WTO for 17 years, the 1.5 trillion-dollar economy is the largest still remaining outside the league of 153 trading nations. The case for Russian membership has been pushed by the perceived economic gains, as well as the wish to usher Russia in before elections next March, which are expected to return Prime Minister Vladimir Putin, a WTO-sceptic, to the presidency.
Still, agreement from neighbouring Georgia is required for Russia to join, and Tbilisi is demanding more trade transparency. Switzerland has been acting as a mediator in the past few months, but the EU said it was "disappointing that the talks have so far not led to a solution".
"There is now very little time left to reach a bilateral agreement between Georgia and Russia," De Gucht said. "I call on both parties to continue their efforts to find a solution in a spirit of compromise." Russian accession could help the WTO's image, as collapsed hopes for the Doha round of trade talks that began 10 years ago have cast doubt on its credibility.
The EU is Russia's biggest trading partner, with 244 billion euros in bilateral trade in 2010 - a 45.8 percent share of Russia's overall trade. Imports from Russia increased by 31.4 percent in 2010, and exports from the EU to Russia went up by 38.2 percent. The car industry had been the major sticking point in negotiations.