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The following article was published in our article directory on December 14, 2010.
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Russia Accession to the WTO Temptations and Compromise

Article Category: Advice

Author Name: xia zihui

This year in October, the United States has just expressed support for Russia's accession to the WTO. Now, as Russia's most important trading partners, the EU's support for Russia's WTO membership eventually removed a major obstacle. European Commission President Jose Manuel Barroso said Russian accession to the WTO in 2011 is "realistic prospect."

And compromise the temptation to join the WTO

Russia is currently excluded from the largest economy outside the WTO individuals to join the WTO for Russia is significant. The World Bank estimates, medium term, Russia's accession to the WTO can promote the growth of gross domestic product by 3.3%, 11% will promote the long-term growth. Former Russian Deputy Prime Minister Anatoly Chubais also said that the EU is Russia's largest trading partner and main investor, and Russia is the EU's third largest trading partner and main energy supplier countries. Russian accession to the WTO, bilateral trade volume with Europe will increase by 65 billion U.S. dollars in 2015 is expected to reach 3,000 billion dollars. Barroso pointed out that Russia's accession to the WTO will strengthen Russia's implementation of the guidelines on trade and attract more investment, Russian enterprises and ordinary people will benefit.

Sufficient to explain such a temptation to 17 years of dedication. However, an inevitable piece of the pie to really eat and ultimately, the Russian compromise. Russia's accession to the WTO negotiations, the EU and Russia to resolve one of the obstacles is that the two sides in terms of differences in wood export tariffs, the result is a Russian commitment to a substantial increase in export tariffs on logs to abandon plans to gradually reduce tariffs, while tariffs will be based on different discriminate between types of wood.

Russian Economic Development Minister said that Russia had prepared a substantial increase in tariffs to stimulate investment in forestry. The current rate of 25% of customs prices, but not less than 15 euros per cubic meter. In 2006, when President Vladimir Putin asked the Government to develop measures to encourage timber processing in Russia, rather than exporting logs. Starting in 2010, the Government plans to raise tariffs on log exports to 50 euros per cubic meter. But in 2009, because of the economic crisis has led to reduced demand for Russian timber, the Government suspended the policy.

Restrictive tariffs on timber exports was not about to give Russia the only measures to support domestic producers. Participate in negotiations on Russia's accession to the WTO Government officials said that 7 years after accession to the WTO, Russia will gradually reduce import duties on new cars: the first 4 years to 25%, after 3 years to 15%. Russia will gradually reduce import tariffs on used cars.

Accession to the WTO negotiations, the most successful year

Russia formally applied to join the WTO in 1993, the predecessor of the General Agreement on Tariffs and Trade 1995, officially began accession negotiations, accession to the WTO is not the last major economy. Russian President Dmitry Medvedev said that Russia has ended this year with the United States and the European Union on Russia's accession to the WTO negotiations, in Russia's accession to the WTO negotiations on a long history, this year is the "most successful year." European Commission President Jose Manuel Barroso also said the EU and Russia on Russian entry into the WTO a major breakthrough in a "landmark."

Russia's accession to the WTO negotiations this year's success and Russia's recent intensive diplomatic activities are not unrelated. 2008 officially inaugurated Russian President Dmitry Medvedev. In the past two years, the past to show a different image of the emerging powers, Medvedev began intensive diplomatic activities. December 7 at the EU - Russia Summit, European Council President Dmitry Medvedev spoke highly of Van Rompuy committed to the efforts of Russia's modernization process. He also said that the EU and Russia towards the common goal of visa-free.

Moreover, Medvedev December 6 visit to Poland, becoming the first 9 years of the country's official visit to Russia summit. This line is called "ice-breaking trip." Medvedev said that to closer relations with NATO and the European Union, Russia and Poland to be closer together. Analysts pointed out that Mei's remark is very right, indeed the past Poland in these relationships often become obstacles.

The United States is undoubtedly the key to Russia's accession negotiations to another country. Medvedev in June of this year's U.S. tour with the "Hamburg diplomacy" to show the world the Russian-US relations warmed up. A joint statement after the U.S. said it would strive to help Russia join the WTO as soon as possible. Russian government officials in October announced that Russia has completed accession negotiations with the United States. Being formed in Russia, Belarus and Kazakhstan, the customs union will no longer be an obstacle to Russia's accession to the WTO.

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