Russia a step closer to WTO

Russia's Constitutional Court on Monday ruled that a domestically controversial deal to join the World Trade Organization (WTO) was in line with the basic law. WTO entry will oblige the country to cut current protectionist import duties and open key sectors of the economy to foreign investment.

"The protocol was signed and approved in accordance with a procedure that does not contradict the state's constitutional order," the court ruling said.

The unanimous ruling by the Saint Petersburg judges cleared the way for a final parliamentary vote on Tuesday to ratify the accession treaty. Duma legislators are expected to rubber-stamp the deal.

Russia, whose economy is the largest outside the WTO, would become a full member 30 days after ratification.

The court's ruling quashed a case brought to the highest court by the opposition Communist and Just Russia parties, which had argued that the ratification procedure and parts of the accession deal were unconstitutional.

Favorable growth prospects

The World Bank said Russia could expect 3.3-percent growth over the medium term and 11 percent in the long run from joining the 155-member trade rules club.

But it would have to gradually lower average import tariffs to 7.8 percent from 10.0 percent at present and open up investment in the fields of telecommunications and manufacturing.

However, Russia managed to protect its heavy subsidies to promote its domestic car industry and negotiated a long transitional period for reducing substantial state aid for its farmers.

hg/tj (Reuters, AFP)