Russia has moved one step closer to accession to the World Trade Organization after it agreed rules of car assembly with the US.

"Together with the US administration, we have done a lot to make possible Russia's accession to the WTO before the end of this year,” said Russia’s first deputy prime minister Igor Shuvalov.

US officials express the hope that Russia will join the WTO by the ministerial conference in December 2011. The US is promising to do its best to ensure that the workgroup’s decision is favorable as “the sides have done everything to remove their disagreements.” Russia’s accession to WTO, they believe, meets the interests not only of Moscow, but also of many US companies.

The support comes after both countries reached a consensus on Russia’s new car assembly rules for foreign manufacturers that have long been one of the thorniest issues between diplomats.

The rules, adopted back in early 2011, stipulated that no less than 60 per cent of cars must be assembled in Russia, while the minimum amount of investment in the local economy was raised to $500 million and the minimum output production level to 300,000 vehicles.

As a result of the new rules, Russia – US negotiations on the WTO were at risk of breaking down. The countries, however, agreed on a transition period that will allow the countries to get back to the negotiating table. Analysts predict that starting from 2013 Russia will agree to gradually reduce import duties by five per cent annually.

While negotiating the agreement, Russia stressed that the US should also alter some of its legislation, which is highly unfavorable for trade between the two countries.

“We hope that the only remnant of the Cold War, the Jackson-Vanik Amendment, would be cancelled with the assistance of the American business community," Shuvalov said.

The Jackson-Vanik Amendment was aimed at protecting the rights of Jews attempting to emigrate from the former Soviet Union in the 1970s. It barred normal trade ties between the US and "non-market economy" countries unless they permitted free emigration of their citizens. Although the Soviet Union and the Jewish emigration problems no longer exist, the US has been in no hurry to abolish the amendment. It is largely believed that the Jackson-Vanik amendment might hamper Russia’s entry into the WTO.

Thus far, Russia has remained the only large world economy outside the WTO. The country first applied for membership in the WTO in December 1994. The number of its negotiating partners has kept growing through the years, and the latest working group had 58 members, making it the largest working group in the entire history of the WTO.