(Corrects Ducker's name in 13th paragraph.)

Nov. 10 (Bloomberg) -- Russia and the U.S. will sign terms for the former Soviet state to join the World Trade Organization next week, clearing one of the last hurdles for an agreement that may add $10 billion a year to the Russian economy.

``We have an agreement in principle and are finalizing the details,'' U.S. Trade Representative Susan Schwab said in a statement. Schwab and her Russian counterpart, German Gref, plan to sign the agreement when they meet in Asia next week.

Russia, the last major economy not be a member of the WTO, has sought for more than a decade to join the Geneva-based trade body, which sets international trade and investment rules. Membership stands to boost the Russian economy through increased trade and foreign investment.

The two countries resolved long-festering disputes over trade in meat and rules for financial investment, according to details sent out by the U.S. trade office. Lobbyists say they remain at odds over Russia's intellectual property protections, and will negotiate that in the next round of talks between Russia and all 149 WTO members.

Two other obstacles remain: Russia must overcome Georgia's opposition to its entry to the world trade arbiter, and the U.S. Congress must vote to grant Russia permanent, normal trade relations if the two countries are to enjoy all the benefits of the trade opening.

The U.S. had been the last WTO member to sign off on Russia's entry. Then, last month Georgia said it was withdrawing its support after Russia blockaded its borders.

All Must Agree

Every WTO member must agree before a new country can join the trade organization, so Georgia's opposition will still keep Russia out of the WTO. Even after negotiating the individual agreements, Russia must undertake general talks with the WTO members as a whole.

``Both parties have it as their goal to complete the process of Russia's accession to the WTO and intend to take more energetic efforts to that end,'' the Russian trade ministry said in a statement on its Web site.

With the Bush administration's approval, the debate will shift to Capitol Hill. U.S. lawmakers must vote on a measure to repeal a Cold War-era law that requires an annual review of Russia's trade status. If the Congress fails to approve that measure, the U.S. would have to petition the WTO to be exempt from the tariff cuts and other measures Russia has pledged.

Lawmakers have raised objections to Russia's WTO bid for a variety of reasons, including the country's weak intellectual property protections, its support of Iran's nuclear program and its pricing of natural gas exports.

Lower Tariff

Business groups expressed support for the agreement today.

Russia ``is simply too big to leave it outside'' the WTO, said Frank Vargo, vice president of the National Association of Manufacturers. The agreement, which calls for Russia to lower its industrial tariff to an average of 8 percent, meets the major demands of the manufacturing group, he said.

Large banks, insurance companies and other service companies had been skeptical of the Russian talks, because the Putin administration had insisted on a cap in foreign investment. The announcement today got their support ``on balance,'' said Michael Ducker, chairman of the Coalition of Service Industries.

``We believe that this agreement in principle is much better than the positions that Russia started with on insurance branching,'' said David Snyder, vice president of the American Insurance Association. ``Years of difficult negotiations have produced much progress.''

Area of Contention

Still, intellectual property rights are likely to remain an area of contention. Schwab had said that before it can join the WTO Russia must shut down allofmp3.com, which the U.S. says illegally sells copyrighted music around the world. That Web site remained in operation today.

Russia is also proceeding with a rewriting of its copyright and patent law, and that has drawn criticism from U.S. manufacturers, drug companies and recording companies. The U.S. trade office said those issues remain unsolved.

The agreement sets the stage for further progress with Russia on intellectual property rights issues through the next phase of international WTO negotiations, the trade office said.

``From here on, Russia's deeds -- rather than its words -- are the only thing that matters,'' said Mitch Bainwol, chairman of the Recording Industry Association of America.

To contact the reporters on this story: Mark Drajem in Washington at mdrajem@bloomberg.net; Sebastian Alison in Moscow at Salison1@bloomberg.net.

Last Updated: November 10, 2006 18:33 EST