The WTO or World Trade Organization has existed since 1947. The organization develops trade agreements and monitors compliance with them. Accession to the WTO will have a different impact on different sectors of the Russian economy.
Instructions
Step 1
Negotiations on Russia's accession to the WTO have been going on since 1995. In 2012, the State Duma ratified the Protocol on the Accession of the Russian Federation to the Marrakesh Agreement Establishing the World Trade Organization. Thus, Russia became officially the 156th WTO member state. Accession to the WTO is associated with certain advantages for Russia.
Step 2
Firstly, participation in such a world trade club is at least prestigious, which will lead to raising the status of the Russian Federation in the international arena. With the entry into the WTO, Russia will have the opportunity to influence its foreign partners with the help of various mechanisms that are envisaged in the WTO. One such mechanism is the WTO court. In the event of any trade disputes, Russia will have the right to apply to the WTO court. Also, Russian foreign economic legislation will be brought in line with international standards and practices. Russia will gain new sales markets.
Step 3
Secondly, joining the WTO will have a positive impact on such industries as metallurgy, chemical and coal industries, telecommunications, transport and the financial sector. This is primarily due to the opening of new markets for goods and services for these industries, especially for the metallurgical industry. Also, enterprises will be able to carry out supplies on more favorable terms, since some trade and non-trade barriers will be eliminated. In the service sector, it is expected to accelerate the development of infrastructure and increase the competitiveness of domestic enterprises. Russian consumers will also benefit from WTO accession. This is due to the fact that the choice of goods and services will expand, while their prices will decrease.
Step 4
On the other hand, there are also negative consequences of Russia's accession to the WTO. If Russian enterprises cannot compete with foreign ones and go bankrupt, the employees of such enterprises may lose their jobs. Restrictions can also affect economic policy, including the possibility of using various subsidies and methods of economic exchange. Also, Russia will be limited in ways to protect the domestic market. A negative impact on the following sectors is expected: automotive and mechanical engineering, agriculture, food production and light industry.
