8:02 PM Jul 18, 1995

RUSSIA HOPES ACCESSION PROCESS WON'T BE TOO PROLONGED

Geneva 17 July (Chakravarthi Raghavan) -- Russian Deputy Prime Minister Oleg Davydov assured members of the World Trade Organization that Russia would be a "stable and predictable business partner" and the Russian leadership was committed to continuing the market reforms which were already irreversible.

Davydov, who was speaking at the WTO working party dealing with the Russian accession request, and his colleagues speaking to newsmen outside, expressed the hope that the Russian accession request and process would not become too prolonged.

That would not be a good legacy to leave to one's children, Davydov told the working party. The Russian economy minister Yevgeny Yasin told the media outside "We are realists, but we would like to see a decision as early as possible".

Though neither directly mentioned it, the two ministers and other aides were clearly aware of the long and protracted accession process of China -- which sought accession in 1986, and after nine years, seems to be no nearer membership. The Russian request, and opening speech, was warmly welcomed by sixty-odd delegations who spoke at the working party, but the statements of the majors particularly left little doubt that Russia has a long way to go before it can gain entry.

Japanese ambassador, Minoru Endo, according to participants at the meeting said, in welcoming the Russian accession request, "there were mountains and oceans to be crossed" before Russia gains entry.

The EU and United States also made clear that Russia would have to get rid of its domestic oligopolies and state subsidies and support before it can gain entry.

The Russians in their speech to the working party, and in comments of Russian officials outside, made clear that they were not seeking any special rights, for e.g. as a developing country (eligible for a longer time frame in some areas to comply with rules), in respect of its obligations in the WTO.

But whether all these would make much difference is not at all clear according to observers - even if the Russian application is not complicated by the political and other problems dogging China.

"But when China applied in 1986, and the working party got under way, not much of the political issues figured very much, but they came up or were brought up even as the 'demands' from the majors on the economic arena became larger and larger," one diplomat commented.

In his speech, Davidov stressed that the creation of a fully fledged market economy in Russia and its effective integration into the world economy would be unthinkable without participation in the multilateral trading system. The policies of the Russian government were directed towards achieving the goal of Russia being a "stable and predictable business partner".

Outlining economic reform measures already taken, and others under way, Davidov said these showed that Russia was generally ready to comply with multilateral disciplines worked out by the WTO members.

Accession to the WTO, Davidov said would provide Russia with an important incentive to consolidate the reform process in the country and speed up Russian economic development. Russia was ready hence to ensure consistency of its national legislation with Uruguay Round agreements.

Russia also wanted to become an equal trade partner in the world markets and create more favourable conditions for its exports. In seeking access, Russia was proceeding on the understanding that after it joins the WTO, number of problems it continued to face in relations with some trading partners, and dating back to a different historical era, would be settled.

They were also interested in the WTO system of disciplines in international trade, including the WTO dispute settlement mechanism.

Accession to the WTO would also put Russian trade and economic relations with other countries and regional groupings on an equal and stable legal and economic footing over the long-term.

Russian accession to the WTO would provide it with a better trade environment compared to now and it would also be an important development favourable to other trading partners: it will provide them with a huge market when Russia is effectively integrated into the international trading system.