Russia Changes Its WTO Strategy |
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June 10,2009
Russian Prime Minister Vladimir Putin said Moscow will pull its long-delayed application to join the World Trade Organization and reapply as part of a bloc with neighbors Kazakhstan and Belarus.
Russian Prime Minister Vladimir Putin said Moscow will pull its long-delayed application to join the World Trade Organization and reapply as part of a bloc with neighbors Kazakhstan and Belarus.
The move surprised U.S. and European officials, who had as recently as last weekend been in talks with their Russian counterparts on how to accelerate Russia's WTO bid.
Western officials and analysts said the abrupt shift appears to be a pressure tactic by the Kremlin, which has been frustrated by the slow WTO process, to force a quick deal.
"He's saying 'If you don't let us in, you'll have to deal with a customs union,' " says Nikolay Mizulin, a Russian trade lawyer with Hogan & Hartson LLP in Brussels. "That would complicate everything, they would have to redo all the agreements."
For years, Russia, Kazakhstan and Belarus have been planning to form a customs union, which opens trade among nations by harmonizing tariffs and rules.
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