At the end of August 2012, Russia became the 156th member of the World Trade Organization (WTO). The long period of negotiations and agreements that preceded this event is over. Economic experts expect this event to improve the economic climate in connection with the expected arrival of foreign investors on the Russian market. But there is still no unanimous assessment of how WTO accession will affect Russian producers and, in particular, those of them working in the agricultural sector.
Instructions
Step 1
Support for the Russian agro-industrial complex was one of the controversial issues hampering its entry into the WTO. Currently, the state is allocating additional funds for these purposes, but such protectionist measures are not welcomed by this organization. Back in 2012, the level of government subsidies to rural producers will be $ 9 billion, but from 2013 to 2017 this figure will be reduced to $ 4.4 billion.
Step 2
Experts believe that now it will become much more difficult for Russian agricultural producers to sell their products. The Russian market will be flooded with cheaper products from Europe, where agriculture is traditionally more developed, which naturally affects the cost price.
Step 3
Accession to the WTO will make it possible to reduce government direct subsidies to producers, but to increase indirect financing of the agro-industrial sector of the Russian economy through investment lending to production facilities. These funds will be used to build vegetable stores, packaging and processing lines, which will allow storing, packing and processing more vegetables and fruits. In addition, within the framework of the WTO, the village can receive assistance from the state in the form of modernization of equipment, subsidizing interest on loans, financing of agricultural universities.
Step 4
Membership in the WTO will allow domestic producers to supply products to the markets of other member countries of this organization. Today Russia is ready to supply grain, export poultry and pork. Export of milk and dairy products is possible in the future. The expansion of potential sales markets is generally beneficial to Russian agricultural producers. Moreover, when joining the WTO, a transitional period is envisaged, which provides for the adoption of measures to increase the labor productivity of Russian farmers and the competitiveness of their products.
