Russia is not in a vacuum; it is surrounded by other states. Some of them, even if they are significantly removed, cooperate with our country on many economic issues. Accession to the WTO is another step towards the openness of the Russian economy to world cooperation, but it has both pros and cons. The question of how this will turn out for Russia is still open. The consequences of this decision largely depend on the actions of Russian officials, which will be undertaken in the course of cooperation with other countries.
Instructions
Step 1
Russia went to join the WTO for a long 18 years - this is how much time has passed in anticipation of a positive decision on the country's admission to the ranks of the World Trade Organization. The global economy in the modern world is such that the countries that are members of the WTO receive many advantages. Even the residents of these countries get advantages, since they have access to the best goods in the world at the best prices. Russia could not join the WTO for quite a long time for various reasons, among which were both political and economic. But in the summer of 2012, the Russian Federation became an official member of the WTO.
Step 2
To understand what the pros and cons of being in the WTO are, it is useful to understand what it is all about. The World Trade Organization currently controls approximately 97% of world trade. The tasks of the organization are as follows: simplify world trade, improve the economies of the participating countries and increase the well-being of all their inhabitants. The solution of these tasks is provided by some instructions, which are the same for all states. For WTO membership to improve the economy, these guidelines must be followed.
Step 3
Among the advantages of Russia's accession to the WTO, one can first of all name the fact that Russia is becoming a full-fledged participant in world trade. By the way, the Russian Federation entered the trade union as the last of the countries of the so-called "big twenty", with a noticeable delay. The WTO is the markets of the whole world, open for Russian goods, as well as open access for foreign investors wishing to influence the Russian economy.
Step 4
Also, the WTO is an increase in competition in any area. For example, unjustifiably high rates on domestic credit products are partly due to the complete lack of competition from Russian banks. And many food products produced in other countries are cheaper than those that can be bought in Russia. Accession to the WTO forces the country's economy to take the path of modernization, which means that all domestic goods will have to meet international quality standards. That is why joining the WTO is especially beneficial for ordinary people.
Step 5
Besides improving the quality of goods, there are other benefits. Various imported goods, which are quite expensive today, will be cheaper for the buyer, since the import duties will be significantly reduced. Similarly, Russian manufacturers will be able to enter the world market, since the export of goods from Russia will no longer cost huge amounts, making the final price of products unprofitable for sale abroad. Among other things, participation in the WTO improves Russia's image in the world, which affects all types of relations between our country and others.
Step 6
But the decision to join the WTO has its drawbacks. First of all, everyone is frightened by the fact that Russian enterprises and products will turn out to be completely uncompetitive, which will lead to their ruin. The absence of duties on imported goods can lead to the fact that the price of foreign goods in the domestic markets of Russia will fall, and local production will simply become unprofitable. The agricultural sector and the auto industry may be particularly affected. The country's budget may decrease from the fact that import and export duties will be abolished.
Step 7
To summarize, we can say that the WTO, like a litmus test, will show Russians how good products they actually produce and use. It may turn out that analogues from other countries are much cheaper and of better quality. If Russian enterprises fail to bring their products to an acceptable level, they run the risk of not withstanding the competition and going broke. Nevertheless, accession to the WTO, subject to state support for domestic business, promises an economic recovery and improved welfare for ordinary citizens. In any case, the results will become noticeable no earlier than in 5-8 years.
