Russia joined the WTO: the pros and cons. When did Russia join the WTO (date, year)?

The WTO is an international institution that acts as the successor to the General Agreement on Tariffs and Trade (GATT). The last was signed in 1947. It was assumed that it was temporary and would soon be replaced by a full-fledged organization. However, the GATT was the main agreement regulating foreign trade for almost 50 years. The USSR wanted to join it, but it was not given to it, so the domestic history of interaction with this structure begins only when Russia joined the WTO. Today's article is devoted to this issue. Also, it will analyze the consequences of the fact that Russia joined the WTO, the pros and cons of this decision. We will consider the process, conditions and objectives of joining the World Trade Organization, complex issues for the Russian Federation.

Has Russia entered the WTO?

The Russian Federation is the legal successor of the USSR. If we are talking about when Russia joined the WTO, it is important to understand that this institution began to function only in 1995. The new organization began to control a much wider range of issues. The USSR filed an official application for observer status during the Uruguay Round in 1986 with the aim of further joining the General Agreement on Tariffs and Trade. However, the US rejected it. The reason was the planned economy of the USSR, which was not compatible with the concept of free trade. The Soviet Union received observer status in 1990. After gaining independence, Russia immediately applied for accession to the GATT. Soon the General Agreement was transformed into a full-fledged organization. However, Russia's direct accession to the GATT / WTO system took almost 20 years. Too many questions required reconciliation.

Process of accession to the WTO

Russia joined the World Trade Organization in 1993 as an independent state. Since that time, the comparison of the country's trade and political regime with the standards of the WTO began. Then bilateral negotiations started when Russia introduced its initial proposals on the level of support for agriculture and market access. These two issues formed the basis of the negotiations until the ratification of the agreements in 2012. In 2006, within the framework of the Asia-Pacific Forum, Russia and the US signed the protocol of Russia's accession to the WTO. However, the world financial crisis began, and negotiations on the implementation of further stages of getting membership in the organization were postponed. The conflict with Georgia over Abkhazia and South Ossetia also played its role. The treaty with this country was the last step on the way to Russia's accession to the WTO. It was signed in 2011 in Switzerland.

Customs Union

Considering the question when Russia joined the WTO, it is important to understand that from January 2010 the RF wanted to participate in the process of joining the Customs Union. About this Vladimir Putin made a statement at a meeting of the EurAsEC Council in June 2009. The customs union includes, except Russia, Belarus and Kazakhstan. It was formed in October 2007. WTO members can be not only countries, but also integration associations. However, the leadership of the World Trade Organization has warned the Russian authorities that such a requirement will significantly delay the process of obtaining membership. Already in October 2009, Russia made a statement on the expediency of resuming bilateral negotiations. Kazakhstan joined the World Trade Organization in 2015, and Belarus is still not a member of this international institution.

When Russia joined the WTO: date, year

The resumption of bilateral negotiations significantly simplified the process of accession to the World Trade Organization for the Russian Federation. By December 2010, all the problematic issues had been resolved. A relevant memorandum was signed at the Brussels summit. August 22, 2012 is the date when Russia joined the WTO. The date was marked by the ratification of the Protocol of Accession of the Russian Federation, signed on December 16, 2011, and the entry into force of the relevant regulatory and legal act.

Terms of entry

The procedure for accession to the WTO is rather complicated. It consists of several stages and takes at least 5-7 years. First, the state applies for membership. After this, the country's trade and political regime is considered at the level of special working groups. At the second stage, negotiations and consultations are held on the conditions of the applicant's membership in the WTO. Any interested country can join them. First of all, the negotiations concern access to the state markets and the timing of the introduction of changes. The terms of accession are documented in the following documents:

• Report of the working group. It sets out the entire list of rights and obligations that have been assumed by the country.
• List of tariff concessions in the field of goods and the permitted opportunities for subsidizing the agrarian sector.
• List of specific obligations in the service sector.
• List of exceptions from the most favored nation treatment.
• Legal arrangements at the bilateral and multilateral level.
• Protocol of accession.

At the last stage, the package of documents is ratified, which was agreed within the framework of ad hoc working groups. After that, it becomes part of the national legislation of the applicant state, and the candidate country becomes a member of the World Trade Organization.

Goals and objectives

When Russia joined the WTO in 2012, it did so as part of its economic development strategy. To date, the state can not build an effective national economy, not being a member of this organization. Russia pursued the following goals in its accession to the WTO:

• Getting more access to foreign markets for domestic products through the use of the most favored nation treatment, which is declared by this organization.
• Creating a favorable investment climate by bringing national legislation in line with international standards.
• Increasing the competitiveness of domestic goods.
• Expansion of opportunities for Russian entrepreneurs and investors abroad.
• Obtaining the possibility of influencing the formation of international legislation in the sphere of trade taking into account their own national interests.
• Improving the image of the country in the eyes of the world community.

Such lengthy accession negotiations are evidence of a desire to achieve the most favorable membership conditions for Russia.

Tariff changes

One of the main obstacles to Russia's membership in the WTO was the harmonization of the policy of access to its market of foreign goods. The weighted average import tariff was reduced. On the contrary, the quota of foreign participation in the insurance sphere was increased. After passing the transition period, import duties on household appliances, medicines and medical equipment will be reduced. Within the framework of accession to the WTO, 57 bilateral agreements on access to the domestic goods market and 30 on the service sector were concluded.

Agricultural issues

In addition to discussing tariff concessions, the defense of Russia's agrarian sector took an important place in the negotiations. The RF sought to reduce the number of subsidies subject to reduction. Customs duties on agricultural products were 11.275% instead of 15.178%. For individual commodity groups, there was a sharp decline of 10-15%. After Russia joined the WTO in the year when the global financial crisis began to subside, the domestic agricultural sector faced much more competition in the domestic and foreign markets.

Consequences for the Russian Federation

To date, there are many monographs and articles on the assessment of Russia's accession to the World Trade Organization. Most experts note the positive impact of this process on the economy of the country. So in what year did Russia join the WTO? In the 2012th. What changed? Joining took 18 years of hard work. This process took much longer than expected. Therefore, a positive effect can only appear in the distant future. As predicted by most experts, in the short term there is much more loss in connection with WTO membership than real achievements. However, strategic advantages are worth some tactical defeats. Thus, accession to the WTO is certainly a positive step, without which further development of the country would be impossible.

Advantages and disadvantages of membership

After Russia joined the WTO in 2012, law scholars and economists are not tired of publishing new articles with an analysis of the prospects and problems associated with this event. There are three possible opinions:

1. Neutral . For example, Professor Alexander Portansky believes that accession to the WTO does not bring any benefit or damage.
2. Critical . Analyst Alexei Kozlov notes that accession to the WTO does not give Russia any obvious advantages in the short term. However, this event is beneficial for other members of the organization. Kozlov does not consider long-term prospects for Russia.
3. Negative . Chief economist of the Russian branch of Deutsche Bank Yaroslav Lisovik believes that accession to the WTO can adversely affect the country's economy, especially in the manufacturing industry, due to the reduction of import duties.

However, most experts agree that all the advantages for Russia from membership in the World Trade Organization will be shown only on the basis of competent domestic and foreign policy in the long term.