In 2005, the United States and Russia could sign a trade agreement that would help Russia into the World Trade Organization, said Tom Donohue, President and Chief Executive Officer of the US Chamber of Commerce. According to Mr. Donohue, who has recently visited Moscow, the US Chamber of Commerce is ready to prove the necessity of the trade agreement with Russia in the US Congress, Reuters reported. Mr. Donohue said Russia’s large population, its natural resources and closeness to the United States made the Russian market quite attractive to

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Washington.

The signing of the US-Russian trade agreement is necessary for Russia’s entry into the WTO. It is the United States that stands in Russia’s way to the world trade family. To sign the agreement, Russia will have to allow US banks and insurance companies to open offices in Russia. In other words, Russia will have to open its financial market to foreigners. During his visit to Moscow, Mr. Donohue discussed the issue with Russian Prime Minister Mikhail Fradkov.

Earlier, the US said it had supported Russia’s bid to join the WTO, but it insisted that Moscow take a number of steps, including financial reforms. Meanwhile, Russia could be admitted into the WTO in 2005. Russia has already completed talks with such important partners as the European Union and China.

At a WTO meeting in mid-November, Russia plans to present the report of a working group on the systemic issues of Russia’s entry into the WTO. The meeting is scheduled for November 15-18, 2004.

The World Trade Organization unites 148 countries. To join the organization, Russia needs to sign protocols on the completion of talks with 67 countries-members of a working group on Russia’s WTO entry. After the WTO adopted new accession rules, the admission of a new member requires unilateral approval from all other members.

Russia is ready to lower average import tariffs on industrial goods from 16.5 percent to 7.6-7.8 percent, and tariffs on agricultural products - from 21 percent to 18 percent. It agrees to keep agricultural subsidies between $12bn and $14bn a year. In addition, Russia is ready to join all WTO agreements. But Russia is not going to make further concessions. In particular, Moscow is not ready to abolish import tariffs on planes and aviation equipment. This measure, which would finish off the country’s aviation industry, is unacceptable to Russia. Another unacceptable demand is full access to Russia’s raw material resources. Washington also insists that Russia take more effective measures against CD piracy.

Before the end of the year, Russia plans to complete WTO talks with more than 10 countries. Russia’s economy was ranked 70th (out of 104) in terms of competitiveness, according to the Global Competitiveness Report in 2004-2005 by the World Economic Forum in Geneva.

RBC