Russia joined the WTO. This was an urgent need for the country to enter the world market with its goods and to modernize the economy. Membership in this world organization will allow the Russian Federation to get off the raw material needle and develop industry.
Russia's accession to the WTO has many advantages and the country's citizens are well aware of them. Membership in the organization will add confidence to wealthy foreign investors, as it ensures that the country complies with the rules of international trade. Foreign employers who have long wanted to create production facilities in the country will come to the Russian Federation.
Multinational companies usually pay a lot more than Russian employers. They strictly adhere to the norms of the Labor Code and monitor production safety. To retain qualified employees, Russian enterprises will also have to increase their wages.
The main plus for Russians from joining the WTO is a reduction in duties on the import of goods, this, of course, will lead to a decrease in prices for the necessary products imported from abroad. The duties on medicines will be reduced by 5-15%, on computers within 3 years the mark-up will be completely removed.
This creates competition in Russia between foreign and domestic producers, since prices will be approximately equal. Previously, consumers often chose Russian products because of their lower cost. If domestic companies want to remain on the market, they will have to thoroughly improve the quality and presentation of their products without increasing the price.
WTO accession will also help serious agricultural producers in Russia, since seeds, machinery, fertilizers purchased abroad will become cheaper due to lower duties. Also, rural industry enterprises will enter a new sales market, because there are companies in the Russian Federation that are ready to export their products and compete with foreign firms.
Modern technological, scientific, construction, measuring and computer equipment from abroad will be cheaper for domestic enterprises. Therefore, they will develop faster. Modernization and innovation will help Russian factories improve their products. They will also receive new sales markets.
The most favorable prospects are opening up for the Russian petrochemical and metallurgical industries, since joining the WTO will secure a firm position for the country in world production.
Russia gets a rather long period for the transition to a new level in world trade. A number of industries will go to this for eight years to avoid shock and negative consequences.
