Reuters - 11.15.2006

Bush, Putin agree to sign Russia WTO deal

By Michael Stott

MOSCOW (Reuters) — U.S. President George W. Bush and Russia's Vladimir Putin confirmed at an airport meeting on Wednesday they plan to sign a bilateral deal next week for Russia's accession to the World Trade Organisation (WTO).

Kremlin spokesman Dmitry Peskov said the presidents confirmed that they would sign a protocol paving the way for Russia to join the WTO on the sidelines of an Asian economic summit in Hanoi next Sunday.

Bush and Putin also discussed Iran and its nuclear programme during an "extraordinarily positive and friendly" meeting, Peskov added without giving further details.

Putin greeted Bush warmly as the U.S. leader stepped off Air Force One under chilly grey Moscow skies, and handed a bouquet of yellow and red flowers to U.S. First Lady Laura Bush.

The two leaders, accompanied by their wives, then walked into the VIP wing of the airport building, chatting and smiling.

Bush was making a refuelling stopover at Moscow's Vnukovo airport and Putin travelled out to meet him -- an unusual step given the poor state of U.S.-Russia relations and the fact that the two men will meet again at the end of the week.

Putin and his wife Ludmila treated the Bushes to a typical Russian meal of herring and beetroot, crab salad, tongue, pickled cabbage, and pancakes with caviare.

The Bushes gave the Putins a gift of a photograph showing the four of them riding in a motorised buggy at the July G8 summit in St. Petersburg, the last occasion the two men met.

The warmth shown by the two leaders in their personal relationship belied serious difficulties in diplomatic relations between Moscow and Washington.

DIFFERENCES OVER IRAN

Relations between the U.S. and Russia have been at their lowest ebb in years with Washington criticising Putin's record on human rights and Russia's opposition to the Iraq war and Moscow sniping at what it sees as an overly aggressive U.S. foreign policy.

The United States and its allies accuse Iran of pursuing nuclear weapons under the guise of a civilian energy programme and want tough United Nations sanctions.

But Russia, one of the U.N.'s five permanent Security Council members, dislikes a European draft resolution and wants less restrictive measures with the aim of coaxing Tehran back to the negotiating table.

Russian media and analysts have suggested that Washington may try to extract commitments from Moscow to tough sanctions against Iran in return for supporting Russia's WTO bid.

Negotiations over Russia's entry to the WTO have dragged on for years. Recent sticking points included access for U.S. meat to Russian markets and Russia's willingness to crack down on Internet piracy of films and music.

Russia's backing over Iran is key because Moscow is helping build a nuclear reactor at the Gulf port of Bushehr in Iran, which both sides insist will be used for peaceful purposes only.

Bush and Putin also discussed broader nuclear proliferation issues and the Middle East during their airport meeting which lasted an hour and a half, longer than originally scheduled.

(Additional reporting by Richard Balmforth and Steve Holland)

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Associated Press - 11.13.2006

Russia's trade chief says 'every chance' of WTO deal with U.S. at APEC summit

(AP) — A deal on Moscow's entry into the World Trade Organization will almost certainly be ready for signing when the Russian and U.S. leaders meet on the sidelines of a Pacific Rim summit in Vietnam over the weekend, Russia's trade chief said Monday.

Negotiators had agreed on the main points of a deal for Russia to join the WTO with their U.S. counterparts, and all that remained was to nail down the final details, Minister for Trade and Economic Development German Gref said.

"The task you set was to complete all negotiations in order to ensure the signing of the document in time for your meeting with President Bush in Hanoi," Gref said in televised remarks at a Cabinet meeting chaired by President Vladimir Putin.

He was referring to the Asia-Pacific Economic Cooperation summit, where Putin is slated to hold bilateral talks with U.S. President George W. Bush and other leaders. The two-day summit begins Saturday.

"We have every chance of issuing all the documents and completing all technical work by this time. We will do everything to ensure the signing at your meeting," Gref said.

Gref's ministry had announced that a deal had been struck Friday.

An agreement with Washington marks a key step forward for Russia, which has been in negotiations for 12 years to join the powerful body that sets rules for global trade.

About four months ago, U.S. and Russia had appeared on the verge of an agreement, but it failed to materialize — foundering on agricultural issues right before the summit of leaders of the Group of Eight in St. Petersburg, Russia. The collapse strained relations between Washington and Moscow.

Russia is the largest economy still outside the 149-nation WTO. Putin's government sees membership as a way to show that his country has regained financial muscle since its economic crisis in 1998.

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Financial Times - 10.30.2006

Financial Times

US and Russia miss deadline on trade

By Guy Dinmore in Washington

The US and Russia are close to a bilateral trade agreement that would remove a big hurdle to Russia’s entry into the World Trade Organisation, but Tuesday’s self-imposed deadline will not be met, US trade officials said on Monday.

“Both sides believe we are close, and we fully expect to continue our close co-operation to reach an agreement,” the US trade representative’s office said. However, Russian media reports did not indicate the two sides were on the threshold of an agreement. 

The two failed to complete the stalled trade accord in time for the Group of Eight summit in St Petersburg in July, and set an informal end-of-October deadline for their negotiating teams. 

With relations under strain on a number of fronts – notably over Georgia, energy and Iran – Presidents George W. Bush and Vladimir Putin would like to salvage something from a once-close relationship by the time of their next meeting, in mid-November during the Asia Pacific Economic Co-operation summit in Vietnam.

US trade officials would not say what issues remained unresolved following a week of talks in Washington with Maxim Medvedkov, Russia’s chief WTO negotiator.

Russia’s weak enforcement of existing intellectual property laws, access to its financial markets and imports of US beef and pork had been among issues under dispute.

US businesses are lobbying the Bush administration to complete a deal as soon as possible, concerned they are losing out to European competition. A dozen US companies wrote to both presidents last week urging them to complete the talks.

Moscow’s frustration over the delays is believed to have been a factor behind its decision this month to snub foreign partners and give its own Gazprom full control of the development of the Shtokman natural gas fields.

Even if the US and Russia do overcome the technical difficulties blocking a bilateral trade deal, the Bush administration has to persuade a sceptical Congress to exempt Russia from the Jackson-Vanik amendment for the trade deal to become law.

The amendment to the 1974 Trade Act denies normal trade relations to countries that do not have market economies or restrict emigration rights. 

Although Russia meets the required conditions, Nikolas Gvosdev, editor of the National Interest in Washington, doubts that a weakened US president has the political capital to win over Congress, where many representatives have reservations over Russia’s political direction.

“I see no effort by the administration to even begin prepping Congress to move forward on this,” Mr Gvosdev said. 

Additional reporting by Neil Buckley in Moscow