Threat to WTO membership angers Russia

BLOCKING Russia from joining the World Trade Organisation because of the conflict in Georgia would defy commonsense and break western promises, a Russian official said in response to US warnings.

A senior US official said that Russian integration into international institutions such as the WTO was in question because of Moscow’s military operations in Georgia. President George W Bush said on Wednesday the fighting was hurting Russia’s efforts to join global economic and security bodies.

“The statements that our accession should be delayed because of events in Georgia sound strange,” said the senior Russian official. “It contradicts basic logic, common sense and promises given by western governments to Russia.”

Russian Foreign Minister Sergei Lavrov said Russia was frustrated with delays in negotiations and was becoming convinced it will never be accepted anyway.

“Sorry, but every time they are just fooling us around,” Lavrov said.

The senior Russian official said Russia’s accession could nevertheless provide a fresh impetus to the trade body after the collapse of the Doha round of talks last month. Russia is the world’s 10th largest economy and by far the biggest country still outside the WTO.

“After the July crisis, Russia’s accession could have provided support for the organisation, which is experiencing serious systemic problems,” the source said.

The official also said Russia was unlikely to resume trade negotiations with Georgia, already a WTO member, which earlier blocked the accession talks because of Russian backing for its rebel regions.

Georgia and other ex-Soviet neighbour Ukraine are the only WTO members with whom Russia does not have a bilateral deal. Under WTO rules, a candidate country must reach agreement with all members.

Before fighting between Russian forces and Georgia broke out last week, Russia was completing a decade- long bid to join the WTO. The western-friendly camp in government saw membership as a way to strengthen ties with the west.

But US Democratic presidential candidate Barack Obama has called for a review of Russia’s WTO bid, and US Commerce Secretary Carlos Gutierrez said Russia still had work to do before it was ready to join.

Russia, which currently exports mostly energy and raw materials, seeks WTO membership to gain better access to global markets for the added-value goods it hopes to produce after it diversifies the economy away from natural resources.

The WTO sets the rules for global trade and provides a mechanism for the resolution of trade conflicts.