The WTO is an international institution that succeeds the General Agreement on Tariffs and Trade (GATT). The latter was signed back in 1947. It was assumed that it is temporary and will soon be replaced by a full-fledged organization. However, the GATT was the main agreement governing foreign trade for nearly 50 years. The USSR wanted to join it, but they did not give it to him, so the domestic history of interaction with this structure begins only from the moment Russia entered the WTO. This article is devoted to today's article. It will also analyze the consequences of Russia joining the WTO, the pros and cons of this decision. We will consider the process, conditions and goals of joining the World Trade Organization, difficult issues for the Russian Federation.
Has Russia joined the WTO?
The Russian Federation is the 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 a view to further joining the General Agreement on Tariffs and Trade. However, the United States 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 entry into the GATT / WTO system took almost 20 years. Too many questions needed coordination.
WTO accession process
Russia, as an independent state, began joining the World Trade Organization in 1993. Since that time, a comparison has begun of the country's trade and political regime with WTO standards. Then, bilateral negotiations began 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, as part of the Asia-Pacific Forum, Russia and the United States signed a protocol on Russia's accession to the WTO. However, the global financial crisis began, and negotiations on the implementation of further stages of obtaining membership in the organization were postponed. The conflict with Georgia over Abkhazia and South Ossetia also played a role. The agreement with this country was the last step on the path to Russia's accession to the WTO. It was signed in 2011 in Switzerland.
Customs Union
When considering the issue of when Russia entered the WTO, it is important to understand that since January 2010, the Russian Federation wanted to participate in the accession process as part of the Customs Union. Vladimir Putin made a statement about this at a meeting of the EurAsEC Council in June 2009. The customs union includes, in addition to Russia, Belarus and Kazakhstan. It was formed back in October 2007. Members of the WTO can be not only countries, but also integration associations. However, the leadership of the World Trade Organization strassu warned the Russian authorities that such a requirement would significantly delay the process of obtaining membership. Already in October 2009, Russia made a statement on the advisability of resuming bilateral negotiations. Kazakhstan joined the World Trade Organization in 2015, and Belarus is still not a member of this international institution.
When did Russia join the WTO: date, year
The resumption of bilateral negotiations has greatly simplified the process of joining the World Trade Organization for the Russian Federation. By December 2010, all problematic issues had been resolved. An appropriate memorandum was signed at the Brussels Summit. August 22, 2012 is the date Russia entered the WTO. The date was marked by the ratification of the Protocol on the Accession of the Russian Federation, signed on December 16, 2011, and the entry into force of the relevant regulatory legal act.
Entry conditions
The procedure for joining the WTO is quite complicated. It consists of several stages and takes at least 5-7 years. First, the state submits an application for membership. After this, the country's trade and political regime is examined at the level of special working groups. At the second stage, negotiations and consultations are held on the conditions for the applicant's membership in the WTO. Any interested country can join them. First of all, negotiations concern access to state markets and the timing of changes. Joining conditions are made out by the following documents:
- Working Group Report. It sets out the entire list of rights and obligations that have been assumed by the country.
- The list of tariff concessions in the commodity area and the permitted possibilities for subsidizing the agricultural sector.
- The list of specific obligations in the service sector.
- List of exemptions from most favored nation treatment.
- Legal arrangements at the bilateral and multilateral levels.
- Protocol of accession.
At the last stage, the package of documents is ratified, which was agreed within the framework of special working groups. After that, he 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. Today, the state cannot build an effective national economy without being a member of this organization. Russia pursued the following goals in its accession to the WTO:
- Obtaining greater access to foreign markets for domestic products through the use of the most favored nation treatment declared by this organization.
- Creating a favorable investment climate by bringing national legislation in line with international standards.
- Improving the competitiveness of domestic goods.
- Expanding opportunities for Russian entrepreneurs and investors abroad.
- Getting the opportunity to influence the formation of international legislation in the field of trade, taking into account their own national interests.
- Improving the country's image 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 coordination of a policy of access to its market for foreign goods. The weighted average import tariff has been reduced. On the contrary, the quota of foreign participation in the insurance sector was increased. After the transition period, import duties on household appliances, medicines and medical equipment will be reduced. As part of the WTO accession, 57 bilateral agreements were concluded on access to the domestic market for goods and 30 on services.
Agricultural issues
In addition to discussing tariff concessions, in the framework of the negotiations, an important place was occupied by the defense of the agricultural sector of Russia. The Russian Federation sought to reduce the number of subsidies to be reduced. Customs duties on agricultural products became 11.275% instead of 15.178%. For certain product groups there was a sharp decrease of 10-15%. After Russia joined the WTO in the year when the global financial crisis began to subside, the domestic agricultural sector was faced with much greater competition in the domestic and foreign markets.
Implications for the Russian Federation
To date, there are many monographs and articles on assessing the entry of the Russian Federation into the World Trade Organization. Most experts note the positive impact of this process on the country's economy. So in what year did Russia join the WTO? In 2012 What changed? Joining took 18 years of hard work. This process took much longer than anticipated. Therefore, a positive effect can occur only in the distant future. As most experts predicted, in the short term there will be much more losses due to WTO membership than real achievements. However, strategic advantages are worth some tactical defeats. Thus, joining the WTO is, of course, a positive step, without which further development of the country would be impossible.
