US embassy cable - 05MINSK1393

UNCLAS MINSK 001393 
 
SIPDIS 
 
SIPDIS 
 
PASS USTR FOR ALLGEIER AND DWOSKIN 
EB/OT FOR CRAFT 
USDOC FOR ITA/JACOBS 
 
E.O. 12958: N/A 
TAGS: ETRD, WTRO, PGOV, USTR, BO 
SUBJECT: Minsk Obstinate on WTO 
 
Refs: (A) Minsk 1159, (B) Geneva 2599 
 
1. At a November 11 press conference, Belarus' MFA lashed out at 
the European Union, United States and Australia for "politicizing" 
Belarus' WTO membership.  Deputy Foreign Minister Mikhnevich, who 
led the Belarusian delegation at the October 24 informal 
consultations in Geneva (ref B), told the press the GOB had 
provided clear and comprehensive answers to all the questions it 
had been given.  However, he claimed the U.S. and EU were 
purposefully "stonewalling" Belarus' WTO negotiations for political 
reasons.  He offered to provide more information on any topic, 
including the Golden Share and customs confiscations, but he "does 
not have confidence that tomorrow the EU and U.S. would not present 
new questions."  Expressing surprise that those countries most 
against Belarus joining the WTO, namely the U.S. and Australia, 
have little trade with Belarus, Mikhnevich complained, "Why should 
four or five countries in a 148-country organization decide who 
should be a WTO member?"  [Note: Post understands from ref B that 
Australia was not even present at the October 24 meeting.] 
 
 
Looking for Compliant Friends 
----------------------------- 
 
2. Despite these obstacles, Mikhnevich claimed Minsk is determined 
to "fast-track" Belarusian membership.  To do so Belarus will send 
representatives to the December WTO Ministerial in Hong Kong to 
sign bilateral agreements with friendly states.  Mikhnevich also 
explained Belarus would accelerate negotiations with "safe" 
countries, those who have high levels of trade with Belarus or who 
are unlikely to block Belarus' WTO membership.  He specifically 
named Armenia, Brazil, India, China, Cuba, Japan, Kyrgystan, 
Taiwan, and Turkey as such countries.  MFA Deputy Director of the 
Directorate of Foreign Trade Anton Kudasov explained, "We will aim 
to sign as many agreements as possible to prove that the minority 
[U.S., EU] opinion is false."  Mikhnevich also announced that 
Belarus and Russia were working on an agreement that WTO accession 
of one state would not make it harder for the other to join. 
 
 
What, We have to Change our Legislation to Join? 
--------------------------------------------- --- 
 
3. At the same press conference Mikhnevich and Kudasov maintained 
Minsk would not allow foreign banks to open branches in Belarus, 
even though this is a WTO requirement.  As Kudasov explained, 
"Belarusian legislation does not treat bank subsidiaries as 
independent legal entities capable of bearing liabilities.  They 
are viewed as part of the parent bank.  To make the national 
legislation uniform with that of other WTO member states, we would 
have to amend the national Civil Code." 
 
4. Comment: Lukashenko likely ordered his government to gain WTO 
membership for Belarus, while at the same time not letting them 
make any of the reforms needed for membership.  Kudasov's 
explanation that Minsk is unwilling to amend its legislation to 
meet WTO requirements speaks volumes about Belarus' true 
willingness to do what must be done to join the WTO.  Rather than 
making any changes that would improve their economy, Minsk is busy 
trying to sign agreements with states unlikely to raise much fuss 
about the Belarusian economy, with the goal of outvoting the EU and 
U.S. in the WTO (which also demonstrates their lack of 
understanding in how the WTO works).  The domestic angle also 
cannot be discounted, that Lukashenko wants WTO membership simply 
to show his is a "normal" government.  In this light the GOB and 
its state controlled press can be expected to keep casting the U.S. 
and EU as the villains blocking Minsk's WTO aspirations. 
 
KROL