News / Europe

Russia Faces Potential Obstacles to WTO Bid

Russia has been trying to join the World Trade Organization - or WTO - since 1993. But it's WTO bid faces two possible obstacles: the creation of a new customs union and Georgia's opposition.

Earlier this month, Russia, Belarus and Kazakhstan signed an agreement forming a customs union between the three countries. The ultimate goal is to create, sometime in the future, a single common market of about 170 million people.

Anders Aslund, with the Peterson Institute for International Economics, says it is unclear exactly what the three countries agreed to do. And he points out there have been numerous attempts to create such a trade zone before.

"First if you remember the union between Russia and Belarus in January 1994," he said.  "Then a customs union with Kazakhstan and Russia in 1995, with then Belarus and then added Kyrgyzstan and Tajikistan. And then it was renamed EURASEC [Eurasian Economic Community] in 2000 and it sort of all fell apart," said Aslund.

Aslund says that was followed in September 2003 by the Common Economic Space with Russia, Belarus, Kazakhstan and Ukraine. But he says that fell apart because of the "Orange Revolution" in Ukraine.

"And this [new] customs union is essentially based on the Common Economic Space that should have included Ukraine also but has not, rather than the customs union of 1995," said Aslund.  "Here we have lots of documents that have been signed over the years and they haven't meant really anything. So this is just a big conundrum [riddle] of bureaucracy and nobody seems to obey any laws, so why believe in it?" He asked.

Robert Legvold with Columbia University agrees:

"I don't think anybody who is looking at this believes that it is going to reach any kind of maturity or fruition anytime soon," he said.  "The Russians and Belarussians are feuding continually. There would be fundamental problems anyway, even if there were goodwill among all the parties to it - and that goodwill is simply not there right now," said Legvold.

Some analysts say Russia's participation in a customs union might hurt its chances of becoming a member of the World Trade Organization - the agency overseeing the rules of international trade.

Other experts - such as Legvold and Aslund - say it won't. Once again, Anders Aslund.

"When I've talked to senior Russian officials recently, they say nobody in Moscow takes the customs union seriously. Russian officials have been here extensively in Washington explaining that this will not be an impediment to their WTO accession," Aslund said.

Analysts say a much bigger obstacle than the customs union is the Georgian government's opposition to Russia's WTO membership. Under WTO rules, any member can block a new country from joining simply by vetoing it, because the WTO operates by consensus. Tbilisi has over the years threatened to use its vote against Moscow.

Georgia has been angered by Russia's economic embargo on that country. And Tbilisi strongly opposes Moscow's support for the breakaway regions of Abkhazia and South Ossetia.

Lawyer (with DLA Piper) and trade expert David Christy, who has helped governments in their WTO bids, looks at another contentious issue between Moscow and Tbilisi.

"During Russia's accession, there was a dispute with basically treatment of border posts in Abkhazia and South Ossetia, which caused Georgia to stop the formal working party process for Russia. The way that the members involved in the Russian accession dealt with that was to have in essence 'gray meetings' - informal meetings - to try to push the process along," said Christy.

But that process has gained little ground.

Christy says the Georgians are still opposed to Russia joining the WTO.

"I don't think that they are - put it this way - as formally opposed as they were, but I also don't think that they are on board," he said.  "They had concluded a bilateral [agreement] with Russia. In Russia's case, there are roughly 60 separate bilateral agreements with individual members of the WTO. The bilateral with Georgia had been concluded earlier but was undone by both parties in 2006 and has yet to be put back together. Putting these back together is not like putting Humpty Dumpty back together - but it will take a bit of work, that's for sure," Christy explained.

Christy says if Georgia is the only country opposed to Russia's WTO membership, the political pressure brought to bear on Tbilisi would eventually become intense and could overwhelm that country.

You May Like

At Khmer Rouge Court, Long-Awaited Verdict Approaches

First phase of trial, which is coming to an end, has focused on forced exodus of Phnom Penh in 1975 - and now many are hopeful justice will be served More

Video When Fighting Eases, Gazans Line Up at Bakeries

When there is a lull in the conflict, residents who have been hunkered down in their apartments rush out to stock up on food and other necessities More

Video Information War Rages Alongside Real One in Ukraine

Downing of Malaysian airliner, allegations of cross-border shelling move information war in war-torn country to a new level More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Information War Rages Alongside Real One in Ukrainei
X
Al Pessin
July 31, 2014 8:13 PM
The downing of the Malaysian airliner two weeks ago, and allegations that Russians are shelling Ukrainian troops across the border, have moved the information war swirling around the Ukrainian conflict to a new level. VOA's Al Pessin reports from Kyiv.
Video

Video Information War Rages Alongside Real One in Ukraine

The downing of the Malaysian airliner two weeks ago, and allegations that Russians are shelling Ukrainian troops across the border, have moved the information war swirling around the Ukrainian conflict to a new level. VOA's Al Pessin reports from Kyiv.
Video

Video When Fighting Eases, Gazans Line Up at Bakeries

When there is a lull in the conflict in Gaza, residents who have been hunkered down in their apartments rush out to stock up on food and other necessities. Probably the most important destination is the local bakery. VOA’s Scott Bobb reports from Gaza City.
Video

Video US-Funded Program Offers Honduran Children Alternative to Illegal Immigration

President Obama and Central American leaders recently agreed to come up with a plan to address poverty and crime in the region that is fueling the surge of young migrants trying to illegally enter the United States. VOA’s Brian Padden looks at one such program in Honduras - funded in part by the United States - which gives street kids not only food and safety but a chance for a better life without, crossing the border.
Video

Video 'Fab Lab' Igniting Revolution in Kenya

The University of Nairobi’s Science and Technology Park is banking on 3-D prototyping to spark a manufacturing revolution in the country. Lenny Ruvaga has more for from Nairobi's so-called “FabLab” for VOA.
Video

Video Gazans in Shelled School Sought Shelter

Israel's air and ground assault against Hamas-led fighters in Gaza has forced many Palestinians to flee their homes, seeking safety. But safe places are hard to find, as VOA’s Scott Bobb reports from Jabaliya.
Video

Video Rapid Spread of Ebola in West Africa Prompts Global Alert

Across West Africa, health officials are struggling to keep up with what the World Health Organization describes as the worst ebola outbreak on record. The virus has killed hundreds of people this year. U.S. President Barack Obama and other world leaders are watching the developments closely as they weigh what actions, if any, are needed to help contain the disease.
Video

Video Michelle Obama: Young Africans Need to Embrace Women's Rights

U.S. first lady Michelle Obama urged some of Africa's best and brightest to advocate for women's rights in their home countries. As VOA's Pam Dockins explains, Obama spoke to some 500 participants of the Young African Leaders Initiative, a six-week U.S.-based training and development program.
Video

Video Immigrant Influx on Texas Border Heats Up Political Debate

Immigrants from Central America continue to cross the U.S.-Mexico border in south Texas, seeking asylum in the United States, as officials grapple with ways to deal with the problem and provide shelter for thousands of minors among the illegal border crossers. As VOA's Greg Flakus reports from Houston, the issue is complicated by internal U.S. politics and U.S. relations with the troubled nations that immigrants are fleeing.
Video

Video Study: Latino Students Most Segregated in California

Even though legal school segregation ended in the United States 60 years ago, one study finds segregation still occurs in the U.S. based on income and race. The University of California Los Angeles Civil Rights Project finds that students in California are more segregated by race than ever before, especially Latinos. Elizabeth Lee reports for VOA from Los Angeles.

AppleAndroid