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Georgia removes all barriers but one on Russia WTO bid - ministry -1

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Georgia has withdrawn all its objections but one on Russia's entry to the World Trade Organization, a Russian economics ministry spokesman said Thursday.
(Adds Russian economics minister's reaction in paragraphs 15-17)

MOSCOW, January 25 (RIA Novosti) - Georgia has withdrawn all its objections but one on Russia's entry to the World Trade Organization, a Russian economics ministry spokesman said Thursday.

The South Caucasus state, which had already signed a bilateral WTO deal with Russia, moved to renegotiate its terms and threatened to block the country's 13-year bid after Moscow banned key Georgian exports last March.

The talks, which stalled last summer, resumed at WTO headquarters in Geneva Wednesday.

"The consultations have resulted in Georgia withdrawing all its claims but one," the spokesman said. "The issue of customs checkpoints on the Russian border with Abkhazia and South Ossetia has yet to be resolved."

The countries have long been at odds over the two regions, which broke away from Georgian central government control following a bloody war in the 1990s. Tbilisi has repeatedly accused Moscow of backing separatists there, while Moscow has responded by saying that Tbilisi's policies are a recipe for further bloodshed.

Tbilisi has demanded the closure of what it calls illegal customs checkpoints on the Russian border with the self-proclaimed republics, saying Russia must stop trading with the breakaway regions, and that all goods must pass through checkpoints run by the central government.

Georgia, a WTO member since 2000, has also demanded that Russia lift its ban on Georgian mineral water, wine and other agricultural exports, which were imposed over alleged quality concerns.

The move, which Tbilisi maintains was punishment for its pro-Western course, dealt a heavy blow to the ex-Soviet state's fragile economy.

Georgia's Economic Development Ministry said Wednesday that the Geneva talks would also focus on the use by Russian fishing boats of Abkhazia's territorial waters, which are closed under Georgian law to international navigation, except for vessels with humanitarian cargoes.

The Georgian Coast Guard seized a Russian fishing vessel in the area with an allegedly illegal catch at the start of the year, further fueling the ongoing political and economic standoff between the former Soviet neighbors.

Relations with Georgia plunged to a new low last fall, when Russia cut off travel and mail links with the small nation following the brief arrest there of four Russian officers on spying charges, although Moscow has moved to mend ties this year by returning its ambassador to Tbilisi and re-establishing postal links.

Russia signed a WTO deal with Moldova, another Western-leaning ex-Soviet nation that is already a member of the global trade body, late last year after lifting a similar ban on Moldovan wine and meat exports.

In November, Russia secured a much-sought bilateral agreement with the United States, removing the last major obstacle to its goal of joining the world's largest trade body.

Russia signed protocols on the completion of bilateral talks over its WTO accession with El Salvador and Costa Rica Wednesday, but has yet to sign a protocol with Guatemala.

Russia's economics minister, who is currently in Switzerland for an annual session of the World Economic Forum, said he believed Russia would join the WTO by the end of 2007, and that he would address the issue at bilateral meetings on the sidelines of the forum.

"We plan to join the WTO in November-December, although there are no guarantees of that," German Gref said. "I will hold several meetings on the issue in Davos."

"We will be making arrangements with Georgia," the Economic Development and Trade Minister said.

The ministry expects to complete multilateral talks on the country's admission to the global trade body by the middle of 2007.

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