News and Media
16/11/2011
Russia May Be Invited To Join World Trade Organization
It now appears that Russia will be extended a formal invitation to join the World Trade Organization at the Dec. 15-17 WTO ministerial meeting in Geneva. For U.S. companies to take full advantage of the concessions Russia has made as part of its accession bid, Congress would have to repeal the so-called Jackson-Vanik Amendment, thus allowing the president to grant permanent most-favoured nation status to goods imported from Russia. If Russia ratifies the accession package, full-fledged membership is expected by July 2012.
The Jackson-Vanik Amendment denies most favored nation status to certain countries with non-market economies that restrict emigration, which is considered a human right. Permanent normal trade relations can be extended to a country subject to the law only if the President determines that it complies with the freedom of emigration requirements of the amendment.
American firms and American exporters will enjoy the same benefits of Russian WTO membership as their international competitors.”
Several issues of concern need to be sufficiently addressed, including protection of intellectual property rights, Russia’s commitment to join the Information Technology Agreement (which provides duty-free treatment to information technology products traded among member countries), market access restrictions for U.S. agricultural products, and the impact of Russia’s auto investment regime on U.S. automobile and auto parts companies.
Information on these and other recent developments can be obtained from our senior consultants.
