Brussels, 21/10/2011 (Agence Europe) - The European Commission and the Russian government settled, on Friday 21 October, the last outstanding bilateral issues, in particular that concerning the Russian investment regime in the car industry, thus opening the road to possible Russian WTO accession by the end of 2011. All that remains now is to lift the obstacle of a possible veto from Georgia.
“We have struck a deal on the final outstanding bilateral issues, leaving the way open for Russia to join the WTO by the end of this year. This understanding will help to protect EU jobs in the car and car components' industry from moving to Russia”, Trade Commissioner Karel De Gucht was pleased to announced on Friday. On the subject of the Russian investment regime for car production, “a balance has been found between the different concerns of European car companies that have already invested in Russia, European car and component companies that export to Russia, and Russia's desire, supported by the EU, to modernise its economy”, the Commission states in a press release. The result is an agreement on a compensation mechanism which will come in if exports of EU car parts to Russia fall as a result of the new investment regime.
Europe and Russia also agreed on other outstanding issues including on: clearer rules for exporting agricultural products and foodstuffs to Russia, and a reliable quota regime for wood exports. Also, the EU secured a guarantee from Russia that an agreement to amend the system of Siberian overflight payments, which is costly for EU airlines, will be implemented in coming weeks.
The EU-Russia agreement is a key phase in the process towards Russian membership of the WTO, but talks continue at multilateral level in Geneva to officialise Russian membership during the ministerial conference of the WTO in mid-December. The obstacle of the possible Georgian veto must also be overcome, if there is no solution to the question of legalisation of customs posts in Abkhazia and South Ossetia, two Georgian breakaway provinces that have been de facto independent since the Russia-Georgia armed conflict in August 2008, and recognised as independent by Moscow. The EU, which regrets failed mediation by Switzerland at the WTO, is ready to give its practical support so that a solution may be rapidly found, De Gucht states. (EH/transl.jl)