USA Has Endowed Russia with the Market Economy Status

Don Evans Minister of Commerce of USA said, “Considering the dramatic economical growth during the last decade, Russia is entitled as a market economy.”

The Kremlin announced, “Prior to the announcement, president George W. Bush had called Putin, the president of Russia to send the news in advance,”

When president Bush visited Russia last month, Putin had requested the status, but Bush had answered that USA would only follow their rules.

The Russian journalism has reported that Russia would be treated equally with other trading opponent when there is a trading complications.”

Russian Minister of Economy and Trading, German Grev told the RTR broadcast, “So far USA has not recognized the market economy status of Russia, and it has caused difficulties in metal, nuclear material, fertilizer and titanium industry, resulting in a trading loss of 1.5 billion dollars, but there will be no discrimination from now on.”

He said, “This conduct is symbolic recognition of the reformation that has been progressed in Russia, and it will affect favorably to the investment of foreign capitals on Russian economy.” and welcomed the news.

On 29th of May, Romano Frody, the chairman of the EU executive committee has announced that Russia’s economy will be recognized as so during the Russia-EU summit talk.

Therefore Russia’s joining WTO will speed up. Mike Moore, WTO’s secretary general has announced that Russia’s joining will be possible next year, which is sooner than the expectation.

Also foreign enterprises’ investments are about to increase. Already, Pepsi Cola, GM and Ford have planned on new investments, and Wal-Mart and other enterprises are investigating the possibility.

Ki-Hyun Kim kimkihy@donga.com