Today we are talking about Russia in a global economic context.
Eighteen years of winged pros and cons and overcoming obstacles before Russia has made it clear, it will join the WTO. The benefits range from boosting Russia’s expert potential, to attracting more FDI. Energy and metal sectors are likely to get the most out of the WTO accession, agricultural and other industries are predicted to lose their ground as foreign company’s production will be more competitive. So far these sectors have been able to survive due to protective measures taken by the Russian government.
But the WTO membership doesn’t mean the companies will instantly have to play by the organization’s rules. The entrance implies a transition period that would allow companies to smoothly adjust to the WTO’s previsions. Opening up means industries will face fierce competition from international companies and if they are able to succeed, the WTO would offer them new lucrative markets and foreign "know how". A more competitive environment could contribute to the government’s plans to modernize and diversify the economy. In addition to that Russian business will operate within a new legal framework.
Andrey Goltsblat: "If they accuse, for instance, of dumping prices by the European commission, by the WTO commission accession will allow the Russian businesses to use, to fully use the international means of defending them globally on the trade disputes".
Not only could Russia stand to benefit from the entrance but other WTO members too could expend their expert capacity as they gain access to one of the largest markets in the world.
Russian consumers will enjoy a better choice of products, cheaper prices. At the same time this may hit some Russian producers who will find themselves unprepared as a flow of high - quality and well-priced goods flood into Russia. In the long run, however, global competition will force Russia to upgrade its industries to the international level and become a knowledge-based economy.
For all issues related to publications, news and press releases, please contact:
If you would like to receive our legal alerts and updates highlighting current legal issues relevant to your areas of interest and providing expert commentary by our lawyers, please click on "Sign Up" and fill out the form.