WTO Talks Failed - Tbilisi Waits, Moscow Does Not Hurry
13 October, 2011
WTO Talks Failed - Tbilisi Waits, Moscow Does Not Hurry

Talks between Georgia and Russia over Russia’s entry in the World Trade Organization (WTO) failed again due to Russia’s stiff approach that makes Georgian side think that Russia does not hurry to join the global trade club.

The 17th and last round of negotiations held on October 7-8, 2011 in Geneva between Georgia and Russia over the Moscow’s WTO bid  led to no breakthrough  similarly to all  previous rounds because Russia refused to meet “even the minimum requests that is necessary

to enroll the WTO,” Nikoloz Vashakidze, First Deputy Minister of Foreign Affairs of Georgia, said during the traditional Monday briefing on October 10, 2011.

The minimum demand of Georgia suggests admitting international monitoring body at customs check-points of Georgia on Georgian-Russian border in the Georgian breakaway republics of Abkhazia and South Osetia that Moscow recognized as sovereign states after the five-day war in August of 2008.

To solve the problem Georgia initially demanded restoration of Georgian customs supervision on cross points. Then it proposed to control borders mutually together with Russian side. Now Tbilisi offers “a compromise solution” involving deployment of international monitors in the trade corridor of Abkhazia and South Osetia bordering with Russia.

Currently only Russian officials monitor the posts and Georgian side cannot control the turnover of goods that poses security and contraband risks, Georgian top officials say.

Moscow finds Georgian proposal unrealistic and blames Georgia in “politicizing” WTO talks. The US and EU been vitally interested in having Russia within the world trade club also hint Georgian government that it should not solve political problems in the WTO format. The point is that Russia is the single big global economy out of the WTO has been knocking at the WTO door for 18 years already. It cannot join the WTO [membership of which is based on full consensus of its member-states] since Georgia is the single country withholding its consent due to border transparency issue.

Georgian economic and political analysts find Georgian government’s approach completely relevant to be solved through the WTO format but they fear that official Tbilisi does not play diplomatic cards skillfully as it still cannot coax Russia to go on concessions.

“The key issue is a result and the result of the WTO talks is zero,” Levan Kalandadze, an economic analyst said. “I do understand that Russia is rigid but no result achieved as yet means that diplomacy fails, that not all tools are used, and the influence of Georgia’s western partners was not used as it should be.”

According to Soso Tsiskarishvili, a political and economic scientist, the WTO talks between Georgia and Russia are stymied as far as Russia lingers to enter the global trade club in the pre- presidential election period scheduled in March of 2012.

Vladimer Putin, the ex-president and incumbent prime minister of Russia nominated for the presidential office again, hates to deteriorate social and economic picture of the country [that definitely ensues the WTO entrance] on the threshold of his pre-election campaign.

“Whatever huge might be the profit of the WTO membership to Russia in a long-term prospect [and it is estimated in 11-13 trillions of dollars] its short-term aftermaths will be the drop in export and employment figures due to increased competition at internal market, and the share of the state protectionisms will be reduced to the minimum – all these is a no-no in the pre-election period and Putin is not supposed to rush in the WTO till the elections are through,” he said.

On the other hand, Russian social economy feels itself quite comfortable without the WTO rules and shuns opening up its doors to free and transparent market principles.

“Therefore if anybody has a critical attitude to Russian WTO bid it is Russia itself,” Tsiskarishvili suggests.

According to him, the single thing that can force Russia to accelerate its WTO bid is failure of euro facing serious crisis at the moment since the lion’s share of Russian income depends on this currency. And if some euro zone countries become insolvent Russia will have no way out but to enter the WTO and attract western investors eyeing Russian market anxiously.

As of much spoken “politicizing” talks by Georgia, Tsiskarishvili thinks that Tbilisi should extend even stronger demands and demand de-occupation of its territory from Russian military forces deployed within Georgian breakaway republics as it obviously hampers economic activity of the country and Tbilisi has full right to solve this problem through the WTO talks.

But Tbilisi sticks to its concessional suggestion and prefers to wait. As Sergi Kapanadze, Deputy Minister of Foreign Affairs of Georgia, who conducted talks with Russian side in Switzerland, told GJ, talks have a sense only if Moscow meets Tbilisi’s demand to admit international monitors so as to control cargo turnover in the trade corridor of Abkhazia and South Osetia.

“Georgia is open to dialogue even tomorrow and we still wait for the Swiss side information whether or not Russia is ready to resume talks this year…But Russia is not ready to meet our demand and we cannot agree till it becomes ready to this,” he said.

Print
Other Stories
Georgian citizens are granted the right to work in France
The French Embassy in Georgia made remarks on granting Georgian citizens the right to work in France
The New York Times: Bitcoin declines but Georgia still bet on it
The New York Times has recently published an article about reasons, challenges and causes of generating Bitcoin in the former Soviet country Georgia.
EU to allocate € 13 billion for Eastern Partnership countries, including Georgia
The European Union together with the World Bank plans to allocate investment worth € 13 billion for infrastructure projects in the Eastern Partnership countries.
Anaklia Port and its importance for Georgia
In 2016, Anaklia Development Consortium was authorized to launch the construction of Anaklia Port.
Cryptocurrency mining threatens electrical network in Abkhazia
In the breakaway region of Akbhazia rampant cryptocurrency mining is threatening the shaky electrical network, reports an article of the news portal EuroNet.
Caucasus Wine University to be opened in Gurjaani
In the Kakheti region a new viticulture campus of the Caucasus University is in the process of planning.
Photos describing life of the poorest in Georgia
Fight with poverty should be among top priorities of every government in every country.
Training farmers to rescue the organic hazelnut production in Georgia
Even drizzling rain and unpleasant gusts of wind can’t prevent the farmers from coming and participating in the agricultural training.
Bleak times for organic farmers in Georgia – but there is hope
Organic hazelnut production is a delicate plant in Georgia that has emerged just a couple of years ago. Various pests, among them the Asian stink bug Parosana, trouble hazelnut farmers and menace their livelihood – even before their businesses could really take off.
Hybrid car imports are going through the roof in Georgia
Thanks to their fuel economy, the popularity of hybrid cars is increasing in Georgia, where fuel affordability is low and prices for fuel are unstable.
The New Year offer from MAQRO Construction - Apartments with unbelievable discounts and the parking spaces for FREE!
Location, green yard, spaces for various needs, experience of the construction company and parking space are the main important criteria for potential buyers of apartments.
Interview with the co-founder of Kiwi Vegan Café – the first vegan place in Tbilisi
Behind the Kiwi Vegan Café stands a group of activists who wants to raise Georgian’s awareness for animal rights and welfare.
Biblusi opens first shop for tourists - Georgian
The largest book shop in Georgia Biblusi opens the first shop specially designated to the needs and interests of tourists and named it Georgian.
Georgia improves by five ranks in the Prosperity Index
In the overall Prosperity Index rankings, Georgia has climbed by 5 positions from 85 to 80 when compared to last year. As such, Georgia is the best performing country in the CIS zone.
The future is bright for electric cars in Georgia
The numerous hybrid cars in the streets of Tbilisi cannot be overlooked. Entrepreneur Sulkhan Gvalia calls them “pagers”, referring to the predecessor of mobile phones.
Georgia’s fight against the big tiny enemy – Asian Parosana
It’s a tiny creature, but the harm it did to the Georgian agriculture sector was and still is immense.
New cable route: from Kobi to Gudauri in 15 minutes
On the 15th of December, cable transport is scheduled to be opened connecting Kobi and Gudauri.
Tourist boom in Gudauri – majority of hotels are booked by foreigners
Gudauri is among the most popular winter resorts in Georgia.
Medical tourism increases in Georgia
In the last 9 months, Georgia was visited by 19 500 foreigners for medical and recovery purposes.
Doing business in Georgia has become easier than in America
According to the Doing Business 2019 report published by the World Bank, Georgia ranked 6th among 190 countries in terms of simplicity of doing business. This was an improvement over two ranks compared to last year.
Problems that foreigners frequently face in Georgia
The importance of Georgia as a tourism hub is growing year after year.
Tbilisi TV Broadcasting Tower – Better than the Eiffel Tower?
It is planned to renovate the Tbilisi TV Broadcasting Tower, one of the landmarks in the capital.
Georgian Fusion Menu by The Biltmore Hotel Tbilisi
5,895,914 international visitors have visited Georgia between January and August of 2018. Compared to the previous year the number has increased by 12.2 per cent.
Advertising of gambling and lucrative games may become banned in Georgia
Advertising of gambling and lucrative games may become banned in Georgia. Those who violate the new rule would be fined GEL 10 000.
Lebanese café-lounge Beirut opens in Tbilisi
What is necessary to organize an unforgettable event? – Fun, emotions, lots of surprises, good music and delicious menu.
PHOTO OF THE DAY
GEL Exchange Rate
Convertor
15.02.2019
16.02.2019
USD
1
USD
2.6420
2.6413
EUR
1
EUR
2.9778
2.9791
GBP
1
GBP
3.3915
3.3851
RUB
100
RUB
3.9577
3.9608
Other Stories
Recently Toyota rolled out Global Campaign under this slogan that reflects the Olympic and Paralympic Spirit of Encouragement,
A couple from Switzerland combines Swiss tradition and technology with Georgian products. Their cheese is made in the Georgian mountains and sold in local stores and hotels.
It has been more than five years since the residents of Lilo village, near Tbilisi, cannot open their windows.
63 000 GEL was received by the Georgian Agro Export Group which is just a small part of the European Neighbourhood Programme for Agricultural and Rural development.
Georgian entrepreneur Guka Tavberidze, who runs his own business in the UK and does it quite well, has been invited by BBC
The grand opening of 7-star The Biltmore Hotel Tbilisi took place in Georgia’s capital on July 31.
DUSHETI, Georgia – The Georgian government and the World Bank will allocate USD 5.6 million (12 million GEL) to fund
A new Georgian clothing brand named Person has emerged in Georgian market.
Georgia is in the midst of an economic maelstrom, Euronews reports.
Situation at Georgia’s mineral water market is interesting: over the last year, the volume of export has grown by 56 percent. According to “GeoStat”, over $114 million worth of mineral water was sold
GEL Exchange
USD
1
USD
2.6413
EUR
1
EUR
2.9791
GBP
1
GBP
3.3851
RUB
100
RUB
3.9608
February 2019
Mon Tue Wed Thu Fri Sat Sun
1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28