Russia & Wto: Pros and Cons of Accession

Topics: World Trade Organization, International trade, Free trade Pages: 6 (1294 words) Published: October 27, 2012
УДК 339.5:811.111
Санникова М. В.
Научный руководитель – старший преподаватель Корниенко В.В. Сибирский федеральный университет Introduction
Recently, subjects of the World Trade Organization (WTO) and the accession of Russia became dominant in public discourse in our country. In the discussion involved officials, politicians, parliamentarians, businessmen.

Defenders of the WTO membership declare that without the participation of the World Trade Organization, Russia is unable to continue economic reforms, to participate equally in international trade and receiving the associated benefits of participation. Their opponents believe that WTO accession will result in irreparable damage to whole branches of industry, would deprive the Government of the possibility of adopting the right economic decisions, and the most radical ones think that membership in the WTO "would kill millions of Russians."

This article contents an effort to understand what benefits the World Trade Organization provides its members and what responsibilities must be performed by members, how participation in the WTO impact on the development of international trade. 1. What would be prohibited to Russia after WTO accession?

Basic "guides" arising from WTO membership, can be summarized in a following way:

To raise import tariffs independently above the level adopted by WTO members.
At the same time, Russia will save the right to use other measures of the internal market protection (special protective, antidumping and countervailing measures), installed on top of import duties.

• Apply quantitative restrictions, excepting special protective measures. • Apply a maximum or minimum required price (for energy goods). • Restrict access to transit and transit networks.
• Tie import (of goods, capital and services) with the obligation to export (in energy sector).
• Use export subsidies in all forms (requirement of EU).
• Implement measures of trade restricting without their early publication. • Provide benefits to state enterprises or monopolies involved in the trade (energy commodities).
• License or otherwise restrict the activities of the service providers. • Discriminate products and services and their suppliers for some countries than in goods and services and suppliers of other ones.

• Discriminate service providers or service compared to internal suppliers or service. Thus, the overwhelming number of restrictions have to be applied in Russia because of commitments under an international treaty on the basis of existing law or de facto. 2. Advantages of accession for Russia

The fact that none of the more than 150 countries, including developing and least developed countries, went out of the WTO, and non-participating in the activity of

organization countries seek to join it, shows that the WTO membership doesn’t preclude the realisation of their national interests, and vice versa, contributes to their achievement. Table 1 gives an assessment of some obvious arguments for the merger. Table 1 - Arguments for the merger

Current situation
Conditions of access of Russian goods and
services to major markets have permanently
deteriorated. Market access is a problem of
economic security of the country.
Russia is isolated from participation in the
development of new international trade rules.
In the result there may be make decisions that
threat the strategic interests of the country,
such as environmental dumping, social
dumping, trade in energy.
Russian legislation is characterized by
unpredictable changes. It greatly hinders to
the normal development of economic activity,
investment attraction.
Lobbying for the interests of individual
companies and groups can become a serious
problem for the government and lawmakers.
The customs policy of Russia, as the policy
of governing access to the market, is
confusing and contradictory.

The situation after the accession
Russia will be able...
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