Russia takes next step toward WTO membership

Russia's membership into the World Trade Organization took one more step toward completion on Friday. 

U.S. Trade Representative Ron Kirk said the Russian Federation's invitation from the Eighth WTO Ministerial Conference to join the trade organization "marks an important turning point in making the WTO truly a ‘world’ trade organization.” 

“For the United States, today represents an important milestone in our relationship with the Russian Federation, and advances President Obama's determination to expand the economic dimensions of a bilateral relationship traditionally dominated by political and security affairs," he said during remarks in Geneva.

Russia has made a commitment to opening its markets and is taking steps to better protect intellectual property rights and information technology "that will create a new and stronger basis for conducting trade relations between our countries," Kirk said. 

Russia has been trying for nearly two decades to secure an invitation into the WTO. 

The U.S. Chamber of Commerce's Christopher Wenk, who is attending the meetings in Geneva, wrote in a blog post that "without question, this is the most significant country accession since China joined the WTO 10 years ago."

"Just like China, Russia is taking on very significant commitments (several hundred pages' worth) as the price of admission to join the world trade body," he wrote.  

"Importantly, Russia is signing up to the same rules as every other WTO member. Russia will benefit tremendously from joining the WTO, and all WTO members will benefit tremendously from finally having Russia in the WTO."

Moscow is expected to act on the commitments it has outlined in early 2012, and then Russia will become members of the organization.  

Still, lawmakers on Capitol Hill will probably have to deal with waiving Jackson-Vanik — without that move, Russian and U.S. companies "will be at a disadvantage to our global competitors (think European and Asian) in the Russian market," Wenk wrote.  

Obama has said he wants to work with Congress to end the application of the Jackson-Vanik amendment to Russia — a 37-year-old provision crafted to put pressure on communist nations for human-rights abuses and emigration policies, which has been "a symbol of lingering tensions in the U.S.-Russia relationship," according to the Council on Foreign Relations. 

Most experts argue that the amendment isn't relevant anymore. 

"We know it will not be an easy fight on the Hill for many reasons, but we will make the case why it's the right thing to do," Wenk wrote. 

"It's important to keep in mind that this is a one-way deal for the United States. We didn't have to make any concessions to get this deal with Russia," he said. 

"Russia had to make all of the concessions and make all of the commitments. The question is whether U.S. companies will be able to enjoy all of those benefits."

The Chamber is expected to push hard for Congress to start the process in early 2012, including the start of hearings at the House Ways and Means and the Senate Finance committees.

Business organziations also back the move. 

“Business Roundtable supports Russia joining the WTO and becoming part of its multilateral, rules-based system,” said Jim McNerney, Business Roundtable chairman and Boeing chief executive. 

“This important milestone will further strengthen our trade and investment ties, promoting economic growth and job creation in both of our countries.”

The BRT also urged Congress to move quickly to approve legislation granting Permanent Normal Trade Relations (PNTR) status to Russia to expand trade relations while furthering U.S. competitive interests. 

"As Russia moves forward to complete its domestic process for joining the WTO, Business Roundtable is committed to working with the administration and Congress to quickly pass Permanent Normal Trade Relations legislation for Russia,” said Doug Oberhelman, chief executive of Caterpillar, who is the chairman of BRT’s International Engagement Committee. 

“The legislation is needed so that U.S. exporters and workers can enjoy all of the benefits of Russia’s accession to the WTO — the same opportunities available to all WTO member countries competing to sell their products and services to Russia.”