Brussels, 08/02/2002 (Agence Europe) - The Union's stance on the conditions for Russia's accession to the World Trade Organisation (WTO) is "reasonable", said a senior European official at the end of talks in Moscow on Thursday with the Deputy-Minister for the Economy, Maxim Medvedkov. The bilateral talks, which resumed at the beginning of the week at a more technical level, essentially ran up against the problem of opening up the financial services and telecommunications markets, as well as subsidies for agriculture. The rhythm must, however, pick up speed in the coming months, so as to enable Russia to join the "Club" in the spring of 2003, as it wants and as predicted by the institution's Director General.
"If the Russians maintain their current position, discussions are going to be very tough in the field of services", said Herve Jouanjean, Director in the European commission's DG Commerce, who led the Community delegation in Moscow. According to him, the Russian authorities have a "lack of ambition, both for opening up the financial services and telecommunications markets and in adjusting their economy to international standards". As we stand, foreign operators who want to enter the financial and banking market run up against limits to the control they have over companies that represent them in Russia and areas in which they may operate. Regarding agriculture, both sides have still a long way to go, said Mr. Joueanjan. In addition, he is sceptical as to the status of market economy claimed by Moscow. "When one sees, for example, the price of gas on the domestic market and on the side of exports, there are at least some question marks", he went on. At a more general level, the Commission objects to the demand for a "standard" treatment for Russia's candidature to the WTO. "That does not exist". "The conditions for membership for each new member are determined on a case by case basis", and in Russia's case, the Union is "less ambitious" than for China, for example, the aim being to secure an "improvement in the current situation for access for European products and services on the Russian market, while taking account of the stage reached by Russia in its transition towards a market economy", sources in Brussels stress. The Commission does, however, refer to "progress" on industrial tariffs and the adoption of new legislation covering intellectual property rights that seem to it encouraging. Each has "considerably advanced in their understanding of the other's position", the spokesperson summarised in a press release. A little before this visit, the Russian authorities had set out their demands and limits of what they could agree to. According to Interfax, Prime Minister Mikhail Kasyanov himself opened the series of statements in New York, in the context of the World Economic Summit, hoping that the Union would not prove to be an "obstruction" in the accession process. Russia must secure "non-discriminatory terms", and recognition, already granted by Washington, of its status as market economy. "You may argue that the Russian economy is not as open as those of other European countries, but it is difficult to deny that obvious progress has been made", he challenged. A little more explicit, the Deputy-Prime Minister and Minister of Agriculture singled out "an evident element of discrimination" in the attitude of the partners. "As example, Russia is told to reduce State support for farmers, (but), it has to have a commensurate right to pursue such a policy", said Mr. Gordeyev, referring to European aid by hectare, fifty times higher than in Russia, and to the tax levied on the import of agricultural products in the Union. According to a senior official of the ministry of Agriculture, Russia wants to be able to subsidise the sector to the tune of $16.2 billion a year, whereas its interlocutors insist on a ceiling of only $1 billion.