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WORLD / Europe

U.S. may sign Russian WTO deal before G8 summit
(Reuters)
Updated: 2006-07-11 18:51

The United States and Russia are poised to sign a deal on the eve of the Group of Eight summit paving the way for Russia to join the World Trade Organisation, officials, diplomats and media said on Tuesday.

The White House played up hopes that Russia's decade-old bid to join the WTO could clear the last major hurdle when presidents George W. Bush and Vladimir Putin meet on the eve of the G8 summit in St Petersburg, which opens on Saturday.

Russia's Itar-Tass news agency quoted Bush as telling foreign correspondents he had sent a letter to Putin setting out the U.S. position.

"There is no lack of clarity about what should happen on the market access issue, from both sides' point of view," Bush said.

"I hope that we'll sort it out. I'm an optimist on this." Bush added when asked about possible remaining hurdles.

A western diplomat said: "The technicians have done everything now on the deal. It is now fundamentally a political and strategic decision."

"I hope that we will manage to successfully conclude talks with the Americans before the start of the summit," Russia's Deputy Prime Minister Alexander Zhukov told reporters.

"I wouldn't want to comment on the talks now, but they are ongoing and I hope they will conclude successfully."

Other diplomatic sources in Moscow said a deal could also create momentum for a last-gasp attempt to save the Doha round of global free trade talks from collapse.

Russia's Economy and Trade Ministry, leading the WTO entry talks effort, had no immediate comment. But a government source said more negotiations could be held in Moscow later this week.

Russian business daily Kommersant said the WTO talks had reached a compromise, with the Americans withdrawing demands that foreign banks should be able to open branches in Russia and that Russia should counter intellectual property abuses immediately rather than gradually.

For its part, Russia would agree to open up its insurance market over seven years and agree to cut agricultural subsidies, which the paper said amounted to $9.2 billion annually.

A U.S. deal is the last major hurdle to Russian entry into the WTO. Russia, chairing the G8 for the first time, is the largest economy outside the 149-member free trade club.

The diplomatic sources said this might, if it came off, change the atmosphere and get Russia interested in allowing trade on to the G8 summit agenda.

This could move the Doha round forward, although there was no sign that a formal meeting of the so-called G6 trade forum - which comprises the United States, the European Union, Brazil, India, Japan and Australia -- would be held.

Representatives from all of the G6 countries, bar Australia, have been invited to the G8 summit.

Russia needs to do more to address U.S. trade concerns before the two countries can finalise a deal, the White House said on Monday.

"We think it's possible, but it's going to take a big effort and particularly it's going to take further movement on the Russian side," White House national security adviser Stephen Hadley told a pre-G8 briefing.

However, senior U.S. lawmakers and leading software, movie and music industry groups have urged the Bush administration not to sign a bilateral agreement until Moscow improves its enforcement of laws against copyright piracy.

The United States also wants Russia to ease food safety and animal and plant health rules that it says unfairly blocks U.S. farm exports and to open its financial sector to more U.S. banks and insurance firms.

Hadley said U.S. Trade Representative Susan Schwab would be going to Moscow in the next couple of days to "see if we can close the deal. We really don't know."

A spokesman for Schwab said the chief U.S. negotiator would only go to Moscow if major issues were resolved first.

 
 

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