The EU must help bring Russia into the World Trade Organisation (WTO) this year and not allow minor rows to distract from the broader benefits, insisted the EU Trade Commissioner Peter Mandelson in Moscow yesterday.
Following a lengthy round of talks in the Kremlin, Mr Mandelson stated that other trade partners, not just Russia, were responsible for some of the ongoing delays in bringing it into the 150-member global trade body. At the moment, it is the only major world economy outside it, despite 14 years of talks.
Although Mr Mandelson admitted that attempts to inject new life into the Doha round of trade talks were frustrating, he was sympathetic towards Russian efforts to quickly join the WTO.
He avoided adding his own voice to recent criticism of Russia, following a succession of rows with neighbouring countries that have twice halted the flow of oil and gas to western Europe and placed security of supply fears on to the EU agenda. Instead, he sought to take a conciliatory position expressing an understanding at Russian impatience. "This has taken too long to navigate and Russia alone is not responsible for the protracted wait." He declined to name which countries he had in mind.
Mr Mandelson specifically criticised the soured atmosphere created by a spate of trade disputes, such as the current Russian ban on Polish meat imports, which has in turn triggered a Polish veto on the start of talks on a new partnership agreement with the EU.
Russia has refused to accept assurance on the quality of Polish imports after it was sold on imported Indian buffalo meat. Warsaw in turn criticised Moscow, accusing it of using trade as a political weapon.
"This is the kind of trade dispute we could do without, that needs to resolved speedily and put behind us," said Mr Mandelson.
He admitted there were other technical rows with Russia, but argued that none in isolation should prevent a broader deal. "In the sweep of history, none of these individually should be enough to block Russia's accession to the WTO," he said. "From where we are sitting today they all can and should be resolved."
He said he was available anywhere, anytime, to help complete the talks. "I'm going to give my personal time and energy to see it happen. We could and should finish this by the end of 2007," he said.
He argued that while Russia has made strong economic progress under President Putin, it remained economically vulnerable to swings in commodity and energy prices.
"Eighty-two per cent of Russia's exports are related to hydrocarbons and metals. Although no one is predicting a drop in oil and gas prices in the short-term, no one predicted the current hike either," he said.
