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

Taliban's New Leader Says Jihad Will Continue

Top US Afghan diplomat also meets with Pakistani, Afghan officials following news of Mullah Omar's death More

Video US Landmark Pushes Endangered Species

People gathered in streets, on rooftops in Manhattan to see image highlights that covered 33 floors of Empire State Building More

World’s Widest Suspension Bridge Being Built Over Bosphorus

Once built, Yavuz Sultan Selim Bridge will span 2 kilometers with about 1.5 kilometers over water, and will be longest suspension bridge in world carrying rail system 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.
Astronauts Train Underwater for Deep Space Missionsi
|| 0:00:00
...    
🔇
X
George Putic
July 30, 2015 8:59 PM
Manned deep space missions are still a long way off, but space agencies are already testing procedures, equipment and human stamina for operations in extreme environment conditions. Small groups of astronauts take turns in spending days in an underwater lab, off Florida’s southern coast, simulating future missions to some remote world. VOA’s George Putic reports.
Video

Video Astronauts Train Underwater for Deep Space Missions

Manned deep space missions are still a long way off, but space agencies are already testing procedures, equipment and human stamina for operations in extreme environment conditions. Small groups of astronauts take turns in spending days in an underwater lab, off Florida’s southern coast, simulating future missions to some remote world. VOA’s George Putic reports.
Video

Video Civil Rights Leaders Struggled to Achieve Voting Rights Act

Fifty years ago, lawmakers approved, and U.S. President Lyndon Johnson signed, the Voting Rights Act of 1965. The measure outlawed racial discrimination in voting, giving millions of blacks in many parts of the southern United States federal enforcement of the right to vote. Correspondent Chris Simkins introduces us to some civil rights leaders who were on the front lines in the struggle for voting rights.
Video

Video Booming London Property a ‘Haven for Dirty Money’

Billions of dollars of so-called ‘dirty money’ from the proceeds of crime - especially from Russia - are being laundered through the London property market, according to anti-corruption activists. As Henry Ridgwell reports from the British capital, the government has pledged to crack down on the practice.
Video

Video Hometown of Boy Scouts of America Founder Reacts to Gay Leader Decision

Ottawa, Illinois, is the hometown of W.D. Boyce, who founded the Boy Scouts of America in 1910. In Ottawa, where Scouting remains an important part of the legacy of the community, the end of the organization's ban on openly gay adult leaders was seen as inevitable. VOA's Kane Farabaugh reports.
Video

Video 'Metal Muscles' Flex a New Bionic Hand

Artificial limbs, including the most complex of them – the human hand – are getting more life-like and useful due to constant advances in tiny hydraulic, pneumatic and electric motors called actuators. But now, as VOA’s George Putic reports, scientists in Germany say the future of the prosthetic hand may lie not in motors but in wires that can ‘remember’ their shape.
Video

Video Russia Accused of Abusing Interpol to Pursue Opponents

A British pro-democracy group has accused Russia of abusing the global law enforcement agency Interpol by requesting the arrest and extradition of political opponents. A new report by the group notes such requests can mean the accused are unable to travel and are often unable to open bank accounts. VOA's Henry Ridgwell reports.
Video

Video 'Positive Atmosphere' Points Toward TPP Trade Deal in Hawaii

Talks on a major new trade agreement among 12 Pacific Rim nations are said to be nearing completion in Hawaii. Some trade experts say the "positive atmosphere" at the discussions could mean a deal is within reach, but there is still hard bargaining to be done over many issues and products, including U.S. drugs and Japanese rice. VOA's Jim Randle reports.
Video

Video Genome Initiative Urgently Moves to Freeze DNA Before Species Go Extinct

Earth is in the midst of its sixth mass extinction. The last such event was caused by an asteroid 66 million years ago. It killed off the dinosaurs and practically everything else. So scientists are in a race against time to classify the estimated 11 million species alive today. So far only 2 million are described by science, and researchers are worried many will disappear before they even have a name. VOA’s Rosanne Skirble reports.
Video

Video Scientists: One-Dose Malaria Cure is Possible

Scientists have long been trying to develop an effective protection and cure for malaria - one of the deadliest diseases that affects people in tropical areas, especially children. As the World Health Organization announces plans to begin clinical trials of a promising new vaccine, scientists in South Africa report that they too are at an important threshold. George Putic reports, they are testing a compound that could be a single-dose cure for malaria.
Video

Video 'New York' Magazine Features 35 Cosby Accusers

The latest issue of 'New York' magazine features 35 women who say they were drugged and raped by film and television celebrity Bill Cosby. The women are aged from 44 to 80 and come from different walks of life and races. The magazine interviewed each of them separately, but Zlatica Hoke reports their stories are similar.
Video

Video US Calls Fight Against Human Trafficking a Must Win

The United States is promising not to give up its fight against what Secretary of State John Kerry calls the “scourge” of modern slavery. Officials released the country’s annual human trafficking report Monday – a report that’s being met with some criticism. VOA’s National Security correspondent Jeff Seldin has more from the State Department.
Video

Video Washington DC Underground Streetcar Station to Become Arts Venue

Abandoned more than 50 years ago, the underground streetcar station in Washington D.C.’s historic DuPont Circle district is about to be reborn. The plan calls for turning the spacious underground platforms - once meant to be a transportation hub, - into a unique space for art exhibitions, presentations, concerts and even a film set. Roman Mamonov has more from beneath the streets of the U.S. capital. Joy Wagner narrates his report.
Video

Video Europe’s Twin Crises Collide in Greece as Migrant Numbers Soar

Greece has replaced Italy as the main gateway for migrants into Europe, with more than 100,000 arrivals in the first six months of 2015. Many want to move further into Europe and escape Greece’s economic crisis, but they face widespread dangers on the journey overland through the Balkans. VOA's Henry Ridgwell reports.
Video

Video Stink Intensifies as Lebanon’s Trash Crisis Continues

After the closure of a major rubbish dump a week ago, the streets of Beirut are filling up with trash. Having failed to draw up a plan B, politicians are struggling to deal with the problem. John Owens has more for VOA from Beirut.
Video

Video Paris Rolls Out Blueprint to Fight Climate Change

A U.N. climate conference in December aims to produce an ambitious agreement to fight heat-trapping greenhouse gases. But many local governments are not waiting, and have drafted their own climate action plans. That’s the case with Paris — which is getting special attention, since it’s hosting the climate summit. Lisa Bryant takes a look for VOA at the transformation of the French capital into an eco-city.

VOA Blogs