24 May 2004

EU pact boosts Russia WTO bid

The following article is excerpted from “The Journal of Commerce” edition of 21 May 2004.

The European Union and Russia signed an agreement Friday [21 May] that caps six years of bilateral discussions between the two parties as Russia moves forward to joining the World Trade Organization.

According to the agreement announced by the EU, the Russian Federation agreed to impose tariffs of no more than 7.6 percent for industrial goods, 11 percent for fish products and 13 percent for agricultural goods once it joins the WTO. It also agreed to cap tariff rate quotas for fresh and frozen meat and poultry at 600 million euros a year.

Russia applied for WTO membership in 1993. As part of its accession process, it is negotiating bilateral agreements with several WTO members, including the U.S., Japan, China, Canada and Australia. The EU is Russia's largest trading partner….

The EU-Russian agreement includes provisions governing numerous sectors, including telecommunications, transportation, financial services, constructions and energy. Under the agreement, Russian gas prices to industrial users … will gradually increase to help finance exploration and development of new fields.