RI commodities to get wider access to Russia

The Jakarta Post Jakarta

Several groups of commodities from Indonesia will have a better chance of entering into Russian market following the latter's commitment to give wider access after Indonesia supported its bid to join the World Trade Organization, an official said.

Herry Soetanto, director general for international trade cooperation at the Ministry of Trade, said the commodities that would benefit from wider access include crude palm oil, tobacco, natural rubber, wood products, plaited materials and footwear,

Russia's commitment to liberalize the commodity sector was given in exchange for Indonesia's support for Russia's bid to become member of the multilateral trading organization.

Indonesia and Russia signed last week a WTO accession protocol, which the latter needs in order to join the multilateral organization.

The protocol, signed on the sidelines of an APEC trade ministers' meeting in Jeju, South Korea, was a result of three years of bilateral talks, which started in March 2003.

Through the protocol, Indonesia managed to ensure several groups of key commodities will be liberalized after Russia's accession, Herry said on Tuesday.

He continued that aside from ensuring the liberalization of the key commodities, Indonesia also managed to win Initiating Negotiation Rights (INR) on 23 specific commodities.

Such rights oblige Russia to consult with Indonesia, whenever it wants to raise the tariff of the 23 commodities.

Herry did not specify the 23 commodities, but said they were included in the six groups of key commodities.

While a number of former Soviet countries such as Armenia and Kyrgyztan and Kazakhstan are already members of WTO, Russia remains outside the multilateral trading system.

Russia currently has observer status at the WTO. Under WTO rules, observers must start accession negotiations within five years of becoming observers.

Negotiations especially with major trading partners could drag on for years as what had happened with China, which became a full member only in December 2001.