25 august 2008

The Government Presidium has agreed on the need to start talks to freeze some agreements Russia has been complying with as part of its WTO accession, First Deputy Prime Minister Igor Shuvalov told journalists on Monday

Participants:
“Because it is a negotiating position it would be better if the list is not revealed,” he said adding that it will not be a unilateral Russian decision and the withdrawal from the agreement will be preceded by negotiations.

"We have proposed to the Government Presidium and it has agreed that there is a need to start talks with the main trade partners and WTO partners so that the obligations that in our opinion put a brake on our economy should stop applying to Russia until it becomes a fully-fledged member of the WTO," Mr Shuvalov said.

The First Deputy Prime Minister noted that the list of agreements which can be suspended until Russia joins the WTO has already been prepared by the Ministry of Economic Development. "Because it is a negotiating position it would be better if the list is not revealed," he said adding that it will not be a unilateral Russian decision and the withdrawal from the agreement will be preceded by negotiations.

Mr Shuvalov explained that at present all the agreements Russia has concluded in the WTO framework fall into two groups. The first group includes agreements which the Russian Federation considers to be legally binding. As for the second group of agreements, they will become binding for Russia from the moment it joins the WTO. However, Russia already complies with these agreements, which does not meet the country's economic interests. These agreements are going to be put on hold.

The First Deputy Prime Minister has agreed that in a sense many of the agreements Russia had accepted were self-imposed. However, in the event the main incentive has been the country's wish to speed up its accession to the WTO.

"When we assumed these self-restrictive commitments we proceeded from the assumption that the process of WTO accession would be quick. As a result we have a situation when in some of the more sensitive sectors of the economy, notably agriculture, we have obligations which in the opinion of many experts restrict the development of these sectors while we have not as yet gained any advantages from joining the WTO," Mr Shuvalov said.

Moreover, the process of Russia's accession to the WTO has been dragging on too long and, as the First Deputy Prime Minister said, "we have to admit that we do not see Russia joining the WTO over the next few months or a year."

Mr Shuvalov stressed that the freezing of some agreements does not mean that the country has abandoned its course for joining the WTO. "What I have said does not indicate a change of economic course: WTO accession meets our strategic interests both in foreign economic policy and in pursuing internal economic development priorities," the First Deputy Prime Minister concluded.