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Russia in WTO

Russia in WTO. Will it be good for WTO? How will it benefit Russia itself?

Russian bear with the WTO girl on the Titanic  |  Drawing from the Russian cartoon film Titanic  |  Click for image.

Russian bear with the WTO girl on the Titanic | Drawing from the Russian cartoon film Titanic | Click for image.

The Way of the Bear
The Russian parliament has till June 15 by when it will have to approve the deal on Russia WTO membership.

Russia is the largest economy in the world that has yet to join the WTO. Doing so after 18 years of negotiations will require Moscow to further open its market, safeguard intellectual property and investments, and strengthen the rule of law.

While Russian authorities anticipate accession, local businesses weigh in the probable losses and benefits they’ll see on getting membership. Adding to worries is the time of the entry, as Europe and the US may be close to another recession amid their debt problems.

Analysts generally estimate joining the WTO as positive. “Competition is expected to grow, though prices will go down, but customers shouldn’t expect quick changes in prices. The transitional period in the WTO will last until 2020,” says Ivan Nikolayev from Aton investment group. (via ‘Russia’s been 10 years late to WTO’ — RT).

As can be expected, there is an anti-WTO lobby, which wants to safeguard Russia high-technology industry from predatory Western commercial practices.

Communist leader Gennady Zyuganov has sent an official letter to the Russian government demanding to prevent the country from joining the WTO.

­“WTO accession will create a real threat to national sovereignty and state security,” Zyuganov wrote.

In financial terms, it would also mean that the 2013 Russian budget will be short of 310 billion roubles (around $9.5 billion), he added, quoting estimates by Finance Minister Anton Siluanov. Thus, the WTO would cost Russia its three-year budget in losses, Zyuganov stressed.

In his view, the country is joining the WTO on “absolutely disadvantageous conditions”. Its main industries are unable to compete with Western partners, the Communist leader notes. Aircraft construction, small and average businesses will find themselves in the most vulnerable situation, he says.

“The government is giving up support of Russian producers just at the moment when the battle for markets, financial flows and access to natural resources is intensifying,” he went on to say.

Apart from purely economic disadvantages, Zyuganov says, joining the WTO would turn Russia into a “territory ruled from the outside”, as the organization is a “tool for the destruction of the state” and “assertion of world corporate power,” he insists. (via ‘WTO a threat to Russian state’ – Communist leader — RT).

The Russian Communists have changed.

The Indian Left are still a lumbering, cold-blooded sauropod – waiting for the sun to come up. Their bodies, blood and brains will wake up after someone shines sunlight on them.

  1. June 15, 2012 at 2:26 pm

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