Finance

Finance

Russia, Georgia Sign WTO Compromise

18 November 2011 13:52 (UTC +04:00)

Baku - APA-Economics. The Swiss government has welcomed the signing of a bilateral agreement between Russia and Georgia in Geneva that sets the legal framework governing customs administration and the supervision of commercial goods between the two countries, a deal which paves the way for Russia’s accession to the World Trade Organisation (WTO), Tax-news reported.

The Swiss government noted that after the five-day war in the summer of 2008, Russia and Georgia broke off diplomatic relations. Since then Switzerland has held a protective mandate, which means that it represents Georgia’s interests in Russia and Russia’s interests in Georgia. In December 2010, at the request of the two countries, Switzerland agreed to mediate in connection with Russia’s negotiations to join the WTO. In negotiations lasting several months, Switzerland mediated the agreement which has now been finalized by the two countries.

President of the Swiss Confederation Micheline Calmy-Rey, head of the Federal Department of Foreign Affairs, travelled to Russia and Georgia at the end of October 2011 to hold direct talks with Russian President Dimitry Medvedev and Georgian President Mikheil Saakashvili in order to clear up the final differences of opinion and to bring the agreement to a successful conclusion.

The agreement signed in Geneva on November 9, 2011, establishes a mechanism agreed to by the two countries to regulate customs administration and the supervision of commercial goods traffic. As previously anticipated, the agreement envisages the deployment of a private company to conduct monitoring activities. In addition a neutral third party will be responsible for mediating in the event of difficulties and will therefore be a member of the joint committee to which the two parties also belong. At the request of Russia and Georgia, Switzerland will assume the role of this neutral third party.

Welcoming the conclusion of negotiations, the Swiss government said: â€œWith this agreement, the parties have paved the way for Russia to join the WTO in the near future. Switzerland is convinced that this measure will lead to improved economic development for Russia and for Georgia.â€

A decision on Russia’s membership bid will be taken at the WTO Conference of Ministers from December 15-17, 2011, in Geneva.

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