New Delhi cannot sign FTA with Moscow until Russia joins WTO

New Delhi, Apr 29 (PTI) India and Russia, two of the four
most important emerging economies in the world, will not be
able to enter into a free trade agreement for expanding their
trade ties unless Moscow becomes a member of the World Trade
Organisation (WTO).

"The agreement is on the table... but we can sign it only
after Russia gets WTO membership," a Commerce Ministry
official told PTI.

A feasibility study on the proposed Free Trade Agreement
(FTA), officially known as the Comprehensive Economic
Cooperation Agreement (CECA), has long been finalised but
cannot be acted upon in the absence of Russia joining the WTO.

Russia's territorial dispute with Georgia is cited as one
of the reasons for the delay in its (Russia's) joining the
Geneva-based multilateral trade body.

"The process has been delayed as Georgia (has) a
territorial dispute with Russia," the official said.

Bilateral FTAs or Regional Trade Agreements are signed to
give market access to partners, but they come under the
overall discipline of the WTO.

"Currently, Russia is not interested in (negotiating on)
tariff issues with us, as it cannot unilaterally bring down
the tariffs," the official said.

India and Russia are part of the BRIC (Brazil,
Russia,India and China) nations, considered as the fastest
growing economies of the world by Goldman Sachs.

However, the Commerce Ministry is confident that the
target of USD 10 billion bilateral trade by 2010 would be
achieved.

Bilateral trade between India and Russia touched USD 7
billion in calendar year 2008.

India's exports to Russia, which mainly comprise tobacco,
tea, coffee and medicines were USD 940 million in 2007-08,
while imports from Russia including fertilisers and electrical
machinery were USD 2,277 million. PTI RK
SAK
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