Obama must reset relations with Russia along economic lines

When Vladimir Putin arrives in Camp David for the G8 summit in May, President Obama must be ready to lay out the framework for a new reset. With Russian membership in the WTO, the US and Europe could create incentives for greater rule of law in the economy and elsewhere in Russia.

As Vladimir Putin prepares for his May inauguration and return to the Russian presidency, the United States must design a new relationship with this often difficult leader and his country.

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The ?Russian Reset? of President Obama?s first term sought to overcome the strain in relations of recent years in order to achieve some specific foreign policy goals. It brought a new arms control treaty, Russian cooperation in transiting military material to Afghanistan, and help in pressuring Iran. But simply continuing the reset along the same lines is a dead end.

There is little likelihood of any significant progress in nuclear arms control because any new accord would require more meaningful reductions in weapons. The US and NATO engagement in Afghanistan is winding down. And Russia seems unwilling to pursue further sanctions against the Iranian threat of proliferation.

When Mr.? Putin arrives in Camp David for the G8 summit in May, President Obama must be ready to lay out the framework for a new reset.

Foreign policy cooperation, including on Iran, will still be important. But this reset must have a more comprehensive goal: to integrate Russia more fully into the international economy and community. By giving Russia ? and Putin ? a greater stake in strong relations with the West, the reset can also create incentives for better behavior, both domestically and internationally, at the Kremlin.??

This new approach should have three components: an economic one that uses Russia?s anticipated entry into the World Trade Organization (WTO) to boost support for rule-of-law and build stronger commercial ties; a diplomatic one that involves? much closer coordination with European allies to present a united front to the Russians; and more firm and clear promotion of human rights and media freedom in Russia.

First, the economics.

In December, Russia reached agreement with the WTO and its members ? including the United States and European governments ? on the terms of its accession. All that remains is for the Duma, or parliament, to ratify the accord. While Putin has been somewhat skeptical of WTO accession, there is no other choice for Russia if the new government wishes to modernize an economy that?s overly dependent on oil and gas exports.

The US and Europe should push Russia to complete its entry into the WTO and then begin close monitoring of its implementation of trade rules. As with China, the process of adopting and enforcing those rules is likely to be slow. Just as the US and European Union pushed together for Chinese adherence to WTO rules on protection of intellectual property, so they must cooperate closely to gain Russian adherence to those rules and others.

WTO membership presents a valuable opportunity to strengthen rule-of-law in that country ? including laws on contracts, property ownership, and investment protection. The US European Union should also support Russian organizations, including business associations, that seek to make WTO membership an effective and practical reality.

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