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ECONOMIC MINISTRY: RUSSIA SHOULDN'T GIVE IN TO WTO

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MOSCOW, May 25 (RIA Novosti) - Russia should not concede to unfavorable requests from the WTO during accession talks, said Maxim Medvedkov, head of the Russian delegation to the WTO and director of the department of trade talks at the Economic Ministry Maxim Medvedkov, Kommersant-Vlast, a weekly, reported.

"We have intensified the pace of negotiations to the critical limit. It is very important for us to achieve a positive result by December of this year because we cannot drag the negotiation process out forever," he said.

The key issues, including agriculture, still remain unsolved. Part of the debate is over veterinary and phyto-sanitary control. The EU and the United States say some of the control measures Russia uses are not scientifically sound.

Two sides are also trying to hammer out an agreement on the state support of agriculture after Russia's accession.

"So far, it has been a slow process. It's a very complicated issue," Medvedkov said.

WTO officials say state support of agriculture in Russia should remain at the current $3-billion annual allotment, although in the EU the volume of subsidies for agriculture constitutes more than $90 billion per year (50% of the price of any agricultural product in the EU represents state subsidies), more than $59 billion in Japan and more than $48 billion in the United States.

"Therefore, we insist on returning to the level of state support recorded in the mid-1990s, about $10 billion annually," Medvedkov said.

But Russia cannot afford to hold off on joining the WTO much longer, he said.

"The current round of talks on liberalization of global trade is going to end soon. By the time it is over, the 'rich North' is supposed to come to an agreement with the 'poor South' about agricultural subsidies," Medvedkov said.

"After that, Russia will have to negotiate with trade partners on the basis of new WTO rules," he said. "That is why it is in our interests to join the organization earlier than that, preferably by the end of 2005, in order to participate in that round at least during its final stages."

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