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SUMMARY
In 1993, Russia formally applied for accession to the General Agreement on Tariffs and Trade (GATT). In 1995, its application was taken up by the World Trade Organization (WTO), the successor organization of the GATT. Russia is the largest economy not in the WTO. However, after a number of fits and starts during the 18-year process, Russia's accession to the 153-member WTO will conclude when, as expected, the WTO members invite Russia to join the WTO during the December 15-17, 2011, Ministerial Conference.
The immediate policy issue for Congress will be whether to enact legislation authorizing the President to grant permanent normal trade relations (PNTR) status for Russia, a status that all WTO members are required to provide each other. Some Members of Congress have indicated that they view congressional consideration of PNTR legislation as the opportunity to ensure that the conditions on which Russia is invited to join the WTO address U.S. concerns.
In joining the WTO, Russia will have committed to bring its trade laws and practices into compliance with WTO rules and other market-opening measures. In doing so, it will take a major step in integrating its trading system with the rest of the world. Those commitments include:
* nondiscriminatory treatment of imports of goods and services;
* reducing tariffs and binding tariff levels;
* ensuring transparency when implementing trade measures;
* limiting agriculture subsidies; enforcing intellectual property rights (IPR) of foreign holders of such rights;
* forgoing the use of local content requirements and other investment measures that limit imports; and
* opening government procurement contract opportunities to foreign firms. In joining the WTO, Russia will also commit to accepting WTO dispute settlement procedures.
In return, Russia will have a voice in shaping and implementing the international trade regime. It will be able to hold its WTO partners accountable for adhering to WTO rules in conducting their trade relations with Russia, making those trade relations more predictable and stable. In addition, Russian economic reformers anticipate that WTO membership will make Russia a more attractive location for foreign producers and investors to do business by locking in trade-liberalizing reforms, which could increase Russia's economic growth.
Concerns among U.S. stakeholders regarding Russia's WTO accession are not so much over whether...