Eurasian Integration Yearbook 2012

Natalia Maqsimchook. “Chronicle of EurasianRegional Integration 2011”2011: Data and ReviewsDecember 16, 2011WTO trade ministers accepted Russia’s bid to join the WTO. The accessionprotocol was signed by Russian Economic Development Minister ElviraNabiullina and WTO Director General Pascal Lamy.Russian Deputy Prime Minister Igor Shuvalov, President of the SwissConfederation Micheline Calmy-Rey, and WTO ministers attended theaccession signing ceremony.Earlier the WTO ministerial conference had approved all documents relating toRussia’s accession to the organisation including commitments on market accessfor goods and services. Russia has been working towards joining the WTO since1993.Russia’s membership in the WTO marks an important milestone in its history,but there is hard work still to be done.First of all Russia will have to determine the rules of its international trade,including the trade regime with the US. The Jackson-Vanik amendment, whichlimits trade with Russia and which is an obstacle to the application of WTOrules between the two countries, would have to be revoked. Failure to do sowould allow Russia to deny the United States preferential access to its markets,and WTO rules will not apply to trade between Russia and the US before it isrepealed.Moreover, during the next six months the Russian government must decideterms of access to Russian markets for goods and services, which give thecountry room for manoeuvre. Russia needs to define its strategy in many areas,particularly in the services sector and with regard to systemic issues. Accordingto the Ministry of Economy, the government and the Central Bank must firstdecide whether or not to introduce a 50% quota for foreign bank control of theaggregate capital of Russian’s banking system.In addition, around one-third of tariff rates under the Russian Federation’s WTOcommitments are higher than those applied within the framework of the CU, soRussia, Kazakhstan and Belarus will have to decide what rates to apply.Meanwhile, Russian businessmen will have to explore a new instrument – theWTO dispute settlement system, a mediation mechanism aimed at reducingbarriers to trade which was unavailable to Russia before the official accession.Maxim Medvedkov, director of the Trade Negotiations at the Ministry forEconomic Development, who has led the negotiations on Russia’s WTOaccession for the last 11 years, believes that Russia should raise grievancesover at least 120 trade barriers imposed by its trade partners. He cites the EU’sreluctance to accept Russian energy prices, especially on gas, when estimatingthe cost of Russian products. Moreover, WTO membership gives Russia anEurasian Development Bank255