eans of creating a Free Trade Zone. Talks on the possibility of free trade with Russia have already begun. Formation of the FTZ between Russia and the EU could be a decisive step toward Russia’s integration into the European economic network. This alternative is advantageous to both parties: Europe would obtain a vast Russian market of 150 million people that could become an important impetus for European growth in the next century. Russia’s vast reserves of raw materials (oil, natural gas, iron ore, precious metals) would be sold without trade barriers.Quotas on Russian imports would be removed. European markets would be open to Russian goods. At the same time negotiations with Russia on the creation of the FTZ are possible only after Russia has joined the World Trade Organization (WTO). Successful WTO accession depends, first of all, on Russia’s liberalization of rules on foreign investment, and general harmonization of Russian law with Council of Europe regulations. A new round of global trade talks has started in Seattle without Russia. Furthermore, the Chechen conflict has caused talks on WTO membership to be postponed. Nevertheless, the Commission is providing technical assistance to facilitate Russia’s accession to the WTO. The European Commission considers Russia’s accession to the WTO to be a vital objective aiding the Russian reform process and providing mutual market access. The Accession would resolve a number of essential bilateral problems between Russia and the EU, notably with regard to standards and certification, and concerning intellectual property rights as provided through the TACIS program . The Free Trade Zone between Russia and the EU could be a decisive step on the way to Russian integration into the European economic network. Obviously varying conditions in particular branches of the Russian economy and their r...
