WTO, Russia and consensus
03 November, 2011
WTO, Russia and consensus

 

Russia will enter the World Trade Organization only through consensus and Georgia had better not hamper it, some Georgian experts think. Some presume Georgia has already made huge concession and Russia should agree if it really wants to join the global trade club. Yes or No – these two words are between Russia and the WTO at the moment; they will decide the 18 year-long WTO bid.

Georgia’s potential veto power, the last remaining obstacle to Russia’s accession to the WTO, is

removed actually as Georgia accepted concession suggested by the Swiss side on establishing international control instead of Georgian customs officers, and Russia should say “yes” as well if it really wants to join the WTO before the end of the year, a goal set by Moscow and Washington.

The talks had snagged on how to monitor trade that crosses from Russia into Georgia’s breakaway republics of Abkhazia and South Osetia. The question became acuter since the brief war the two countries fought in 2008 after that Russia formally recognized Abkhazia and South Ossetia as sovereign nations.

The WTO accepts members through a consensus system, meaning that Georgia, which joined in 2000, can block Russia if it does not accept the Swiss proposal made at the latest round of negotiations between Georgia and Russia in Geneva on October 25-26, 2011.

The Swiss compromise says private firms will place observers on both the Russian and Georgian sides of the border — though not inside the enclaves — to monitor cargo. The contractors will be hired by neutral third parties [tentatively Switzerland].

After a serious international pressure preceding the latest round, Georgia agreed on the Swiss proposal, calling it the final compromise.

“This is the last compromise we have made and if Russia does not accept it we will not go for more concessions, there is no time left for negotiations,” Sergi Kapanadze, Deputy Foreign Minister of Georgia, who leads Georgia’s delegation at the talks, told Georgian Journal.

However, Russia took a week-long time-out, thus pending its final say till November 9-10 when the last round of negotiations is scheduled. The uncertainty laid ground to speculations and surmises.

Soso Tsiskarishvili, a political-economic scientist presumes Russia will accept the Swiss proposal if it finds it apt in the pre-presidential-election period in 2012.

“WTO brings benefits in long-term prospects while an immediate aftermath is reduction of employment and deterioration of social picture. It is certain jeopardy before elections so they will weigh all pros and cons and if find unsuitable to join WTO at the moment Moscow will say ‘No’ and blame Georgia,” he said, adding that if Moscow turns down the deal, Georgia should not make any more compromise, because admitting of international monitors at the internationally acknowledged economic borders of Georgia instead of Georgian customs officers, is already a huge compromise.

The WTO could technically admit Russia through a vote of the majority; that type of accession has occurred only once in the early phase of the organization’s history. But Russia as a big global power wants to hold its international image high and join the trade club only through the way of consensus.

“The basic WTO principle is consensus, all countries but one exception went through this way and it is not prestigious for Russia with its international reputation and image to enter the WTO otherwise than consensus. Theoretically the WTO regulation makes possible that trade relationship between two certain countries [Georgia and Russia for example] would not be regulated by WTO rules but we do not want this. We want to follow the way of consensus,” Aleksey Portansky, Director of Information Bureau on Russia’s WTO Entry at High School of Economics, said on November 1, 2011 at the video-bridge dedicated to Georgian Russian WTO talks.

Demur Giorkhelidze, an economic analyst, believes Russia will  join the WTO only through  consensus and Georgia should not hamper this as Russia’s WTO entry is a part of big international political game.

“We should consider the deal pragmatically: if Russia joins the WTO the trade embargo will be automatically removed, all product quality suspects will be settled through the WTO dispute council and politicians can no longer block trade deals. On the other hand Georgia’s veto power is a mirage. Russia’s WTO entry comes in the interest of all big international players, they have already agreed on this as Russia is a decisive factor to control situation in Afghanistan and Middle Asia that is so important today. And Georgia has no power to block decisions made on such levels, and it should not block it for it will be placed in more complicated political situation,” Giorkhelidze told GJ.

He believes Russia is ready to join the WTO this year and if Georgia hampers its consensus-based integration Russia will undertake more severe policy toward Georgia as well as the US and EU since they guaranteed Moscow to get within the WTO this year.

“Situation is that if Russia says no to the Swiss proposal Georgia will be forced to make step back again, it is more prudent. Russia’s WTO membership can be a step forward to start regulation of other relationships between Georgia and Russia,” Giokhelidze said.

 

Print
Other Stories
The most wanted fruits from Georgia
The fruit exportation has decreased in Georgia. According to Geostat (National Statistics Office of Georgia), this year, up until May Georgia exported 25 939 300 USD worth of fruit – 6 771 300 USD less than in 2018.
Investment Plan for Europe – Additional EUR 800 million for SMEs as EIF and ProCredit double support for innovative companies
The European Investment Fund (EIF) and ProCredit Group are providing an additional EUR 800 million to innovative small and medium-sized companies (SMEs),
Everything of comfortable life in one space – Second part of construction of one of the largest apartment complexes finished in Tbilisi
Apartment in ecologically clean environment, thousands of square meters of green yard, swimming pools, places for various sports activities, treks for walking and running, commercial spaces – all these available in one space is not a fantasy.
Batumi awarded Europe's Leading Emerging Tourism Destination 2019
World Travel Awards Europe Gala Ceremony 2019 took place on the 8th of June in Madeira, Portugal.
Coca Cola to open new factory in Georgia, will hire female drivers
Coca Cola is opening new factory in Georgia in December.
World's best party supply company now on the Georgian market
The largest party supply store in Georgia - MyDay is launching as the official distributor of AMSCAN from 2019.
Live as a marketing tool and an unprecedented live stream launched by Livetag
Sharing information has become smoother and more versatile in today’s technological world. Recently, live streaming, an online streaming media has become especially popular.
Theme and program of Caspian Energy Forum Tbilisi – 2019 changed
“The 8th International Caspian Energy Forum Tbilisi – 2019, scheduled for June 21, will focus on the development of the Azerbaijan-Georgia relations in the field of economy and energy”,
Misunderstanding over Poti deep sea ports
There was misunderstanding around deep sea ports in Georgia – in Poti.
High demand for dollars or the investment decline – Why Georgian Lari depreciates
$1 equals GEL 2,7470 in the official rate set by the National Bank of Georgia (NBG).
PSP Group confirms negotiations regarding purchasing of GEO Hospitals
PSP Group confirms negotiations regarding purchasing of GEO Hospitals.
New life to be given to Dashbashi Canyon
Georgia’s Agency of Protected Areas is planning to give new life to Dashbashi Canyon in Tsalka (southeastern Georgia).
Who is constructing “Khadori 3” Hydropower Plant in Pankisi Gorge?
Clashes broke out in Pankisi Gorge, Georgia’s northeastern region between special forces and residents
Business Positive – Successful radio program from Radio Positive
Starting point of radio program Business Positive is to meet interesting people, communicate with them and deliver information that is interesting for the audience.
A factory of electric vehicles to be built in Kutaisi
Prime Minister Mamuka Bakhtadze stated that a factory of electric vehicles will be built in Kutaisi at the presentation of the Aigroup business group.
Qvevri-shaped hotel complex to be built in Telavi
A Qvevri-shaped hotel complex is scheduled to be built in the village of Shalauri in Telavi, Kakheti (east part of Georgia).
Georgian designers presented at Fashion World Tokyo 2019
The products of 11 Georgian designers are showcased at Fashion World Tokyo 2019,
Silknet raises $200 million in Eurobond issue
27 March 2019 - JSC Silknet (“Silknet”), one of Georgia’s leading telecommunications operators, has successfully priced a debut $200 million 5-year 11% senior unsecured bonds issue (the “Notes”).
Pistachio trees will be planted in Georgia
Dozens of hectares of Pistachio are planned to be planted in Georgia this year.
Toyota Safety Sense and Hybrid Technology
Toyota Caucasus, has presented two new models the 5th generation RAV4 and the 12th generation Corolla at Rustavi International Motorpark, several days ago.
Bidzina Ivanishvili “became number one oppressor of businesses in Georgia” - ICC Georgia chairman Fady Asly
Mr. Ivanishvili promised the business community to protect them from harassment and pressure, unfortunately his words died with the sunset of that day
The best brands of Belarus will be exhibited on a large-scale exposition in Tbilisi
"The Belarusians like to come to Georgia to relax near the sea in Batumi as well as to stay in sunny Kakhetia."
Don’t treat business like a hooker! - Georgian businessman Vasil Soprpmadze addresses politicians
Businessman Vasil Sopromadze, founder of the company "Fresco", addresses politicians
RAV4 No Compromise and Corolla Set to Impress – Two New Cars Presented by Toyota
Toyota Caucasus, the company constantly aspiring to greatness, has presented two new models the 5th generation RAV4 and the 12th generation Corolla.
Mamuka Khazaradze quits TBC bank, does not sell the TBC Bank share
I made a decision to leave TBC bank where I spent 27 years of my life
PHOTO OF THE DAY
GEL Exchange Rate
Convertor
22.07.2019
23.07.2019
USD
1
USD
2.8845
2.8845
EUR
1
EUR
3.2410
3.2410
GBP
1
GBP
3.6177
3.6177
RUB
100
RUB
4.5787
4.5787
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
2.8845
EUR
1
EUR
3.2410
GBP
1
GBP
3.6177
RUB
100
RUB
4.5787
July 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
29 30 31