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RUSSIA HOPES TO COMPLETE WTO TALKS THIS YEAR

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MOSCOW, May 17 (RIA Novosti economic commentator Nina Kulikova) - It is principally important for Russia to wind up the talks on accession to the World Trade Organization this year, Russian chief negotiating delegate Maxim Medvedkov has said on Tuesday. However, several things still lacking compromise remain.

"We are at an advanced stage in every direction of negotiations," Medvedkov said. On the majority of systemic questions the positions of Russia and its negotiating partners coincide. But still, there are themes where no agreement in principle has yet been reached, he said.

It is, first of all, formation of gas prices. According to Medvedkov, some WTO members demand leveling out external and internal prices on gas in Russia. However, in the process of joining the WTO, Russia cannot assume obligations in sectors where reform is still under way, Mevedkov said. In addition, all of the world trade relies on export prices being above internal, he added.

Second, the role of the state in the economy. Medvedkov said that some partners want Russia to assume broad commitments on the state-run economic sector upon the completion of privatization. But, this is outside the framework of the WTO rules, he said.

Also, partners of Russia would like the volume of state support for agriculture to be fixed at the same level as during the last four years, or not more than $3.5 billion annually. Meanwhile, back in the early 1990s Russian agrarians got an average of about ten billion dollars annually. Russian agriculture is today underfinanced in comparison with the United States and the European Union by 10 to 15 times, Medvedkov said. "Russia does not ask for the volume of support provided in the European Union: we are not ready to compete with the EU in agricultural budgets. However, for normal competition our farming producers should have comparable opportunities for access to resources," he said.

Russia is often criticized for a tough policy in veterinary control. In the context of permanent epidemic outbursts, it is important to preserve measures guaranteeing the quality of food in the risk zone (it is, above all, poultry meat). "We cannot always rely on the certificates presented by our partners because they are not always issued after due checks," Medvedkov said.

The fourth problem still unsettled with many members of the WTO is intellectual property. Here, Russian legislation is closely approximating the world standards. But, Russia has problems with the law-enforcement practice. "Settling them takes time," Medvedkov said.

Another matter of principle is consultations with Australia, which is willing to get access to Russia's minerals, Medvedkov said. No other country comes up with such demands. And no member of the WTO assumes such obligations. "It may be by mistake," Medvedkov said. "While the telegram was traveling from Canberra to Geneva something was mixed up. But such things do not help the negotiating process."

The representative of the Economic Development and Trade Ministry recalled that by now Russia has wound up talks with 30 members of the WTO, accounting for over 85% of the foreign trade of the Russian Federation. "It now remains to finalize talks with 25 countries. Among them are such big partners as the United States, Canada, Australia, Brazil, Argentina, Mexico and Norway," Medvedkov said. A regular round of talks with the United States and Norway on Russia's entry into the World Trade Organization is due in June.

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