WORLD TRADE WT/MIN(98)/ST/59
18May1998
ORGANIZATION(98-2042)
Original: English MINISTERIAL CONFERENCE
Second Session
Geneva, 18and20May1998
RUSSIAN FEDERATION
Statement Circulated byMr.Vladimir Karastin,
Deputy Minister forExternal Economic Relations andTrade
(AsAnObserver)
Onbehalf oftheGovernment oftheRussian Federation andourdelegation letmewelcome
alltheparticipants ofthisConference andexpress gratitude toitsorganizers forthepossibility to
participate insuchanauthoritative international forum.
Thepresent Conference isanoutstanding event inthelifeoftheWorld Trade Organization.
Inmany aspects itwillindicate theguidelines forthefurther development oftheinternational trading
system fortheperiod tilltheendofthismillennium andintothe21stcentury. Having made adefinite
choice infavour ofafullmembership intheWTO, theRussian Federation hasanobjective interest
instrengthening theOrganization, making itmoreuniversal, further improving theinternational trading
rules against thebackground oftherapid changes intheworld economy.
Thestrategic course ofRussia istheevery possible increase inforeign economic relations,
progressive change ofthestructure ofitsexports, integration intotheworld economy. Toagreat
extent thiswould befacilitated bythetransformation ofourcountry inanintegral partofthemultilateral
trading system. Weconsider theaccession totheWTO asanadditional factor ofdeepening themarket
reforms andsecuring thesustainable economic development.
Asaresult ofmarket reforms, theeconomic results oftheyear1997 laidtheground for
macroeconomic stabilization andrenewal ofeconomic growth inourcountry.
Wehave adopted anumber ofdecisions, including legislative ones, inthefinancial and
institutional area,aimed, inparticular, atthereduction inGovernment expenditures, thestrengthening
oftheGovernment control overtheactivities ofnatural monopolies, introduction ofabidding system
ofgovernment procurement.
Thecharacteristic feature ofthelastyearwasthebeginning oflarge-scale reforms inthesocial
sector andhousing andutilities. Monetary income ofthepopulation increased by2.5percentinreal
terms.Therateofunemploymentdecreased(from3.4to2.8percentofeconomicallyactivepopulation).
Theannual rateofinflation wasabout 11percent, which istwice lessthanin1996.
Nevertheless theeconomic situation inourcountry isnotaneasyone. There arewell-known
budgetary problems, which areprimarily duetothepoortaxcollection. TothisImustaddthatthe
financial system ofourcountry hasexperienced unfavourable consequences ofthecrisis inthestock
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markets ofsome South-East Asian countries. ForthefirsttimeRussia really felttherealinterlinkages
between itsmarket andtheworld finances.
Thisyearisofparticular importance forusinrespect ofthenegotiating process ontheaccession
totheWTO. Atpresent themultilateral, "information" component oftheaccession process isinthe
advanced stage, bilateral tariff negotiations onthebasis oftheRussian offerhavebeenlaunched and
arecontinuing successfully. Inthenearfuture wewillsubmit ourinitial offer onservices.
Iwould liketotakethisopportunity toextend ourgratitude toMember countries fora
constructive stance inourWorking Party andgeneral support ofouraccession totheWTO.
Wehaveapragmatic taskbefore us,bearing inmind thatthetrade regime forRussia should
improve aftertheaccession totheWTO. Inexchange, ourpartners would getstable andpredictable
conditions ofaccess totheRussian market.
Weunderstand thatthese issues should beresolved inthecourse ofthenegotiations andwe
areready topursue them withalltheinterested Member countries. What wehaveatpresent atthe
"negotiating table" areourinitial proposals, andthatishowwewould likeournegotiating partners
toconsider them.
Atthesame timewewould liketoexpress thehope that,aswehavementioned onseveral
occasions, ournegotiating partners would refrain from requesting theacceding countries, including
Russia, overly excessive andunjustified commitments, ascompared totheobligations oftheexisting
WTO membership.
Iamconfident thatwewillbeabletofindappropriate solutions within theWTO which isa
pragmatic organization.
TheConference should examine issues ofimportance totheWTO system andoutline the
perspectives ofliberalization oftheworld trade fortheperiod aftertheyear2000. Allthese issues
areofgreat interest toRussia andwewould notonlyliketobeobservers totherealization ofthese
perspectives.
Iwisheverybody successful work.
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