Russia Signs Key Trade Deal With U.S.

Russian President Vladimir Putin, left, and owner of Russia's OAO Rusal, metals mogul Oleg Deripaska attend a meeting of members of the APEC business consultative council in Hanoi, Saturday, Nov. 18, 2006. (AP Photo/ITAR-TASS, Dmitry Astakhov, Presidential Press Service) (Dmitry Astakhov - AP)

HANOI, Vietnam -- Russia and the United States signed a key trade agreement Sunday, removing the last major obstacle in Moscow's 13-year journey to join the World Trade Organization.

The deal, inked on the sidelines of a gathering of Pacific Rim economies, is a powerful vote of confidence in Russia _ the largest economy still outside the 149-member WTO _ and signals its integration into the global trading system.

It also marks a bright spot in the two countries' relations that have been marred by disagreements over Iran's controversial nuclear program and Washington's fears of a roll back of democratic freedoms under Russian President Vladimir Putin.

"I am very pleased to be here today to have the opportunity to celebrate this very important milestone as Russia moves one important step closer to becoming a member of the WTO," said U.S. Trade Representative Susan Schwab.

"Russia belongs as a full-fledged member of the WTO," she said. "We look forward to continuing these efforts to improve the economic and commercial ties between our two nations."

Russia's Trade and Economic Development Minister German Gref called the deal a "historic step _ the last step _ that signifies the return of Russia to the market principles of the world economy."

As part of the deal, Gref said that Russia had pledged to cut import tariffs on a range of goods _ including aircraft, computer technology, agriculture and machinery.

Speaking after the signing ceremony Gref defended those concessions. "I think we found the necessary balance. On all positions that were sensitive for us we found a compromise."

The two countries also managed to overcome the high-profile question of Russia's shaky record on protecting intellectual property rights. Pirated films, music and software in Russia cost U.S. companies nearly $1.8 billion in 2005.

Schwab said that while talks with Russia on the piracy question would continue at the stage of multilateral negotiations, she expressed satisfaction with Russia's progress: "We believe that the bilateral agreement is very good."

Before it can join the WTO, Russia must consolidate the bilateral agreements it has forged with 57 countries. Gref said he expected that process to be completed by the middle of next year.

After that, the WTO needs to vote to approve its membership. But some questions remain.