posted July 16, 2006 12:04 PM              

Bush Blocks Russia's Bid to Join WTO
By TERENCE HUNT, AP

ST. PETERSBURG, Russia (July 15) - In a chilly prelude to the G-8 summit, U.S. President George W. Bush blocked Russia's entry into the World Trade Organization and Russian President Vladimir Putin mockingly said Moscow doesn't want the kind of violence-plagued democracy the United States has fostered in Iraq.

Patrick Kovarik, AFP / Getty Images
[img]Bush Blocks Russia's Bid to Join WTO[/img]

U.S. President George W. Bush, right, and Russian President Vladimir Putin meet before the opening of the annual G8 summit. There was reportedly a quick handshake but little warmth between the two.

Watch Video: Bush and Putin Spar at G-8 Summit

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Alternately joking and baiting each other at a news conference on Saturday, the two also showed differences on the explosion of violence in the Middle East.

Bush did not blame Israel for its punishing attacks in Lebanon and said it was up to the militant group Hezbollah to lay down its arms. Putin, referring to Hezbollah, said abductions and the use of force were unacceptable. But he was also critical of Israel's use of force.

The two leaders met for two hours before the opening of the annual summit of eight world powers, which was expected to focus on nuclear problems with Iran and North Korea and the escalating fighting between Israel and the Islamic guerrilla group Hezbollah.

There was a quick handshake but little warmth between Bush and Putin during a photo opportunity opening their talks.

Despite the sparring, there was none of the tension and anger that crackled in Bratislava, Slovakia, 17 months ago when Bush challenged Putin over Russia's crackdown on dissent and retreat from democracy and the Russian president snapped back.

After that jarring meeting, Bush concluded that lecturing Putin in public was unproductive. Still, Bush said he offered Putin some suggestions.

"I talked about my desire to promote institutional change in parts of the world like Iraq where there's a free press and free religion," Bush said at the news conference, "and I told him that a lot of people in our country would hope that Russia would do the same thing."

Putin, in a barbed reply, said: "We certainly would not want to have the same kind of democracy as they have in Iraq, I will tell you quite honestly." Bush's face reddened as he tried to laugh off the remark. "Just wait," Bush replied about Iraq.

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Putin also said Russia would not take part "in any crusades, in any holy alliances." Bush's national security adviser, Stephen Hadley, said he was perplexed by the comment.

Hosting the Group of Eight summit for the first time, Putin had hoped to win approval for Russia's admission to the World Trade Organization, the 149-nation group that sets the rules for world trade.

The U.S. is the only country that has not signed off on Russia's membership in the WTO, and Bush dashed Putin's hopes for getting in now.

"We're tough negotiators," Bush said, adding that any agreement would have to be acceptable to the U.S. Congress.

U.S. Trade Representative Susan Schwab said "significant progress" had been made in narrowing differences over the protection of U.S. copyrights and patents and boosting the sale of American manufactured goods. She said negotiators were unable to resolve a dispute over Russian barriers to the sale of American beef and pork, but the hope was that an agreement would be reached "in the next couple of months."

The Middle East violence threatened to overtake the summit's carefully planned agenda and highlight divisions among leaders. Bush has been outspoken in defending Israel and accusing Hezbollah - backed by Syria and Iran - of igniting the crisis with a cross-border raid into Israel and the capture of two Israeli soldiers.

"The best way to stop the violence is for Hezbollah to lay down its arms and to stop attacking. And therefore I call upon Syria to exert influence over Hezbollah," Bush said.

Putin agreed it was unacceptable to pursue goals using force.

"At the same time," he said, "we work under the assumption that the use of force should be balanced." European countries - France in particular - have condemned Israel's attacks as excessive, putting Bush at odds with other world leaders.

The U.S. pressed for a summit statement identifying Hezbollah as the main culprit and emphasizing the importance of maintaining a democratic Lebanon. The statement also would criticize Syria, Iran, and the Palestinian group Hamas for "all acting in a way that frustrates democracy in the area and frustrates peace," said Hadley. It would assert the importance of maintaining democracy in Lebanon and salute efforts of the United Nations to restore peace.

Russian Defense Minister Sergei Ivanov called the conflict "basically, a war that has begun" and warned that other nations in the region could be drawn into the fight.

Bush said he and Putin agreed on the need for the U.N. Security Council to take action against Iran for refusing to halt uranium enrichment and against North Korea for testing a long-range missile and refusing to rejoin six-nation disarmament talks.

"There is common agreement that we need to get something done at the U.N." on Iran, Bush said. He said there was common ground on North Korea, as well, and "now we're working on language."

Russia and China have been reluctant to impose penalties on North Korea or Iran. Bush declined to say whether he asked Putin to back U.N. sanctions against Iran.

Lacking a centerpiece agreement on trade, the United States and Russia announced several other agreements.

They agreed to increase cooperation against nuclear terrorism, which they described as one of the world's most dangerous security challenges. The accord envisions other nations in the campaign.

They also agreed to discuss a civilian nuclear agreement clearing the way for a profitable arrangement for Russia to use its vast territory as a storehouse for the world's used reactor fuel.

07/15/06 20:14 EDT