Faculty of World Economy and International Affaires
Master of International Business
“Russian Federation in WTO: Advantages and disadvantages”
Written by student
Alexandra S. Gudimova
Russian Federation in WTO: advantages4
Russian Federation in WTO: disadvantages6
Market access for goods — tariff and quota commitments8
Russian Federation - an integral part of the global community. Defining the individual path of economic and political development, of our country however cannot remain aloof from the processes taking place around. The modern world is dictating its terms, and any State has the right to decide whether to accept them or not. And if State takes, it has to be unconditionally or amended at the features of the development.
Russia's accession to the WTO, to which country was going neither more nor less than 18 years, is just such a step - considering the basic situation of world economic processes, Russia could not take them entirely due to a number of national characteristics. In addition, Russian Federation on its way to join the World Trade Organization faced many obstacles - both political and economic, and also social issues. There was even an attempt to hold a referendum against the entry of Russia into the WTO; however, this attempt has not succeeded.
So, August 22, 2012 can be considered the starting point of a new stage of development of the Russian Federation - it became an official member of the WTO - one hundred and fifty sixth member of the WTO (156-th). It accessed on favorable terms. Among the "Big Twenty" Russian Federation entered the WTO the last. However, nowadays the controversy on that subject does not cease. In this essay I try to understand what kind of benefits our country will gain as a result of this move and will clarify if there are any minuses of Russia's accession to the World Trade Organization.
The World Trade Organization was established in 1994 and is the successor to the General Agreement on Tariffs and Trade (GATT), which, in turn, has existed since 1947. Nowadays the organization controls about 97% of world trade. The main objectives of the WTO are the liberalization of international trade, contribution to the economic growth in member countries and hence the increase of welfare of their citizens. In order to make decisions of such serious problems documents have been developed within the structure and, of course, their implementation should be mandatory by all members of WTO.
Undoubtedly, Russia's accession to the WTO is not synonymous with its bright economic future, because every process has both positive and negative sides.
Russian Federation in WTO: advantages
1) Improving the image of the country as an equal participant in world trade. Reducing barriers to international trade market. Free access to established international dispute resolution schemes in the field of trade (there is special Commission for the settlement of disputes in WTO). More opportunities for Russian investors to participate in the economies of the countries - members of the WTO.
2) Increase in competition in the financial sector as a result it could be the reduction of loan rates for households and for small and medium-sized businesses.
3) The modernization of the national economy in accordance with the requirements of the nowadays stage of development of trade and economic relations. Many Russian producers will be forced to pay special attention to the quality of their products in order to provide it with high competitiveness otherwise it will be impossible to enter the world market.
4) Reduction of fees. As a result - the number of imported goods will become cheaper (for instance: medicines, foods, clothes, IT-products, etc.). Definitely from this...