The World Trade Organization has successfully concluded negotiations on China’s terms of membership of the WTO, paving the way for the text of the agreement to be adopted formally at the WTO Ministerial Conference in Qatar in November.

China’s entry into the WTO was one of the mostly eagerly anticipated events scheduled for last week. Although it was disrupted by Tuesday’s terrorist attack in New York, and although it now appears set to go ahead the market hardly seems interested.

“International economic cooperation has brought about this defining moment in the history of the multilateral trading system,” said Mike Moore, WTO director-general. “With China’s membership, the WTO will take a major step towards becoming a truly world organization. The near-universal acceptance of its rules-based system will serve a pivotal role in underpinning global economic cooperation.” Thirty days after China notifies its acceptance of the agreement, China legally becomes a member of the WTO.

Upon accession to the WTO, foreign financial institutions will be permitted to provide services in China without client restrictions for foreign currency business. For local currency business, within two years of accession, foreign financial institutions will be permitted to provide services to Chinese enterprises. Within five years of accession, foreign financial institutions will be permitted to provide services to all Chinese clients.

Foreign non-life insurers will be permitted to establish as a branch or as a joint venture with 51% foreign ownership. Foreign life insurers will be permitted 50% foreign ownership in a joint venture with the partner of their choice.

For large scale commercial risks, reinsurance and international marine, aviation and transport insurance and reinsurance, upon accession, joint ventures with foreign equity of no more than 50% will be permitted. Within three years of China’s accession, foreign equity share shall be increased to 51%. And within five years of China’s accession, wholly foreign-owned subsidiaries will be permitted. Within two years of China’s accession, foreign non-life insurers will be permitted to establish as a wholly-owned subsidiary.

New York Life Insurance Co. welcomed the announcement. Its chairman, president & CEO, Sy Sternberg, said, “It has been New York Life’s long-standing position that China’s WTO membership is essential to the future of the world’s economy.”