U.S. and Russia Sign Bilateral WTO Market Access Agreement
According to the Office of the U.S. Trade Representative (USTR), on November 19, 2006, the U.S. and Russia signed a bilateral market access agreement which the USTR states is an important element in Russia's accession to the World Trade Organization (WTO).
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Russia Must Finalize Market Access Agreements, Etc. to Complete WTO Accession Process
A USTR press release explains that Russia has been negotiating with the U.S. and other WTO members on the terms of its accession to the General Agreement on Tariff and Trade (GATT), and then to the WTO, since 1994. To complete its accession bid, Russia must finalize all its bilateral market access agreements and then complete multilateral negotiations on a comprehensive Working Party Report and Protocol of Accession.
The USTR notes that Congressional action is necessary to enable the U.S. to grant Permanent Normal Trade Relations (PNTR) to Russia. This will be necessary for U.S. businesses, farmers, ranchers, and others to enjoy the benefits of Russia's membership in the WTO, once it completes the final multilateral phase of its accession negotiations.
Highlights of U.S.-Russia Bilateral Agreement
The USTR states that the bilateral agreement creates new market access opportunities for U.S. providers of goods and services to the Russian market. In addition, the bilateral agreement addresses long-standing trade irritants between the U.S. and Russia. Highlights of the bilateral agreement's terms include:
Resolution of long-standing issues that had impeded U.S. agricultural exports of beef, pork, poultry, and products in biotechnology. The USTR states that these commitments take effect upon signature of the bilateral market access agreement.
Russia agreed to cut tariffs on manufactured goods to an average of 8%. Sectors that will benefit from substantial tariff cuts include civil aircraft and parts, medical and scientific equipment, agriculture, power generation, construction equipment, information technology, and chemicals.
Russia will establish a more transparent system for the import of electronic goods with encryption.
The U.S. and Russia agreed to a binding blueprint for actions to address piracy and counterfeiting and improve protection and enforcement of intellectual property rights (IPR) before Russia completes its accession to the WTO.
Russia has committed to fully implement the Trade Related Aspects of Intellectual Property Rights (TRIPS) Agreement and other IPR-related international agreements upon accession.
Russia agreed to provide improved market access for U.S. service suppliers in a broad range of important sectors, including audiovisual, construction, distribution, express delivery, engineering, environmental, financial, telecommunications, fixed satellite, and business services.
USTR Press release on signing of agreement (dated 11/19/06) available at http://www.ustr.gov/Document_Library/Press_Releases/2006/November/United_States,_Russia_Sign_Bilateral_WTO_Market_Access_Agreement_Negotiations_on_WTO_Membership_Now_Move_to_the_Multilateral_Pha.html.
USTR press release on finalization of negotiations (dated 11/10/06) available at http://www.ustr.gov/Document_Library/Press_Releases/2006/November/US_Russia_Work_to_Finalize_Bilateral_Negotiations.html
USTR fact sheet on agreement (dated 11/10/06) available athttp://www.ustr.gov/Document_Library/Fact_Sheets/2006/Factsheet_on_US_Russia_WTO_Bilateral_Market_Access_Agreement.html
USTR fact sheet on agreement on services (dated 11/19/06) available at http://www.ustr.gov/assets/Document_Library/Fact_Sheets/2006/asset_upload_file276_9976.pdf.
USTR fact sheet on agricultural goods market access (dated 11/19/06) available at http://www.ustr.gov/assets/Document_Library/Fact_Sheets/2006/asset_upload_file346_9977.pdf.
USTR fact sheet on non-tariff measures affecting U.S. agricultural trade (dated 11/19/06) available at http://www.ustr.gov/assets/Document_Library/Fact_Sheets/2006/asset_upload_file991_9978.pdf.
USTR fact sheet on non-agricultural goods market access (dated 11/19/06) available at http://www.ustr.gov/assets/Document_Library/Fact_Sheets/2006/asset_upload_file693_9979.pdf.
USTR fact sheet on action of critical IPR issues (dated 11/19/06) available at http://www.ustr.gov/assets/Document_Library/Fact_Sheets/2006/asset_upload_file151_9980.pdf.