Europe’s Kickback
// The EU might set new conditions for Russia’s accession to the WTO
The European Union might tie up supporting Russia’s entry into the WTO with normalizing relations with all European countries, judging by the EU’s interior documents prepared for the EU-Russia summit in Samara on May 17-18. Russia will face the united European stand on many issues, from railway tariffs to Moscow’s pressure on Estonia.
Belgium’s European Voice, which is part of The Economist group of companies, said on Friday that the European Commission had ratified a “strategic document” for the EU-Russia summit in Samara scheduled for May 17-18. Its author Andrew Bitti provided extracts of the document to Kommersant. It is in fact a note addressed to the so-called EU-three in the upcoming talks with Russia: EU foreign policy chief Javier Solana, EU External Affairs Commissioner Benita Ferrero-Waldner, and German Foreign Minister Frank-Walter Steinmeier. The note is dated April 18, and was ratified on April 25 at the session of the COREPER [the Committee of Permanent Representatives in the European Union, made up of ambassadors from the EU member states]. The document contains coordinated recommendations to the EU officials on conducting talks in Samara.
EU Trade Commissioner Peter Mandelson’s spokesmen confirmed the document’s authenticity on Friday, saying, however, that Europe’s mass media distorted its meaning: Europe’s stand on Russia’s accession to the WTO has not changed.
The main news contained in the document is that the EU, during the summit in Samara, might tie up supporting Russia’s entry into the WTO with solving other problems in the EU-Russia relations. Member of Russia’s delegation to the summit, State Duma deputy Alexei Likhachev said on Friday: “We are planning to end the coordination of the working group’s report with the EU by the summit in Samara. Only a couple of issues remains.” Judging by the EU’s stand, it will not happen before the summit, at least.
The EU gave preliminary support to Russia’s WTO entry back in autumn 2005, in the corresponding bilateral agreement. Russia has similar agreements with most WTO member states, including the United States. Yet, in order to join the WTO, it is necessary not only to round off all bilateral talks, but also to sign the multilateral agreement, -- the working group is preparing it now. However, the EU may revoke its signatures in the 2005 agreement at any moment. In this case, Russia will face new WTO talks with the EU. If it happens, Russia won’t even hope to join the WTO in 2007.
It is disadvantageous for Russia that the WTO issues will be raised by the EU at the summit. The EU already has enough questions to Russia concerning the implementation of the bilateral agreement. COREPER documents also mention the conflict around meat and agricultural product supplies from Poland to Russia. European Voice also mentions the issue of discriminatory railway tariffs in Russia. The EU has earlier protested against the contradictory (as it thinks) WTO rules on the anti-dumping investigations in Russia and limiting Russia’s import of rolled metal products. The document says “the EU is ready to support the earlier-achieved agreements with Russia on its entry into the WTO, but not at all costs”.
Thus, the threat of canceling the EU-Russia bilateral agreement on the WTO, or of refusing to support the multilateral agreement, might come true. The document says that Russia and the EU intended to develop principles established in the 2005 agreement into the future “complex agreement on trade freedom and economic integration”. It is impossible to sign it without concluding another framework EU-Russia cooperation agreement. Meanwhile, the ‘big’ agreement is delayed, and the upcoming summit will mostly concern this document. To remind, Poland blocked the ‘big’ agreement’s preparation on the EU’s side due to Russia’s ban on Poland’s meat import. The old EU-Russia agreement expires in 2007. Thus, the EU might directly demand that Russia solve the Poland’s meat issue, under the threat of creating WTO-entry obstacles.
The situation is aggravated by the political conflict between Russia and Estonia, which will become the summit’s political background. EuroCommissioner Peter Power officially said on Friday the Estonian issue is not being tied up with the WTO issue. However, it is obvious that Russia will not manage to detour the Estonian issue: the EU has openly sided with Estonia, toughly criticizing Russia’s actions. There have appeared speculations that the events near Estonia’s embassy might undermine the upcoming summit.
EuroCommission’s Moscow office did not give official comments on the COREPER’s note on Friday. The office said its “employees are allowed to stay at homes” [pro-Kremlin youth movements held another of their anti-Estonia rallies near the EuroCommission in Moscow].
Russian officials did not like the idea of tying up the WTO issue with other problems in the EU-Russia relations. A high-placed source close to the WTO talks said on Friday: “Eurobureaucracy generates a multitude of papers, not all of which reflect the EU’s position.” Deputy Likhachev said: “Theoretically, Russia might exclude the WTO issue from its strategic priorities, in response to the EU’s tough position.” Federation Council speaker Sergei Mironov said to “Vesti 24” TV channel: “If anyone thinks that Russia is desperate to enter WTO as soon as possible, they are deeply mistaken.”
Dmitry Butrin, Maxim Shishkin, Natalia Portyakova
All the Article in Russian as of May 05, 2007
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