Georgia forced to comply with WTO rules

Even the USA couldn't but protect their own economy in spite of fanatic love for liberalization. In September Barack Obama adopted penal taxation of China-made car tires promising to introduce 100% duties on steel pipes from the Heavenly Empire.

China filed a complaint to the WTO. But who will this organization support? Beijing - that has covered the whole world with its consumer goods or Washington that presents unconfirmed suspicions of subsidization of Chinese manufacturers to justify its acts?

By the way not only China but Canada too criticizes the US. Canadians are particularly discontent over the US requirement on mandatory country of origin labelling for foodstuffs and provision of confirming documents to the customers. As a result the US meatware companies and trade chains decided not to fuss over the papers and switched over to US-produced meat.

Canada also applied to the WTO. However it will hardly gain anything. At all events big countries won't be ousted from the world trade system regardless of protectionist measures they introduce. And Georgia will have to comply with the rules of the WTO that is vividly losing its power during the crisis.

Georgia can't afford losing its membership in the organization. First of all it is the "trump card" in its relations with powerful Russia. The northern state is not allowed in the WTO mainly because of differences with Georgia that linked this issue with resolution of regional conflicts and that now has broken off negotiations completely.

However there aren't many supporters of Russia's accession into this organization in Russia. It is too dangerous for agriculture and some other spheres unable to compete with foreign manufacturers for geographical or other reasons not connected with modernization.

Basically it's big metal exporters that lobby Russia's accession into the WTO hoping to be incentivized on the US market. But the experience of China shows these hopes are empty - at least during the crisis.

The second reason why Georgia clings to the WTO is that even after the departure of Kakha Bedukidze there are quite a number of liberals in the Georgian parliament that see the good side even of costs.

It will be remembered that Georgia was one of the post-Soviet pioneers acceding the WTO. As the experts remark, Georgia was made to understand this was the only way it could attract large investments.

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