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. Joining 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 what this will turn out for Russia for the time being remains open. The consequences of the decision largely depend on the actions of Russian officials, which will be taken in the course of cooperation with other countries.
Instruction manual
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Russia went to join the WTO for 18 long years - that’s how much time has passed in anticipation of a positive decision to accept the country into the ranks of the World Trade Organization. The global economy in the modern world is such that the countries entering the WTO receive many advantages. Even the benefits are gained by the inhabitants of these countries, as they gain access to the best goods in the world at the best prices. Russia could not join the WTO for quite some 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.
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To understand what are the pros and cons of staying in the WTO, it is useful to understand what it is all about. The World Trade Organization currently controls approximately 97% of global trade. The objectives of the organization are as follows: simplifying world trade, improving the economies of participating countries and improving the welfare of all their inhabitants. The solution to these problems is provided by some instructions that are the same for all states. For WTO membership to improve the economy, these instructions must be followed.
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Among the advantages of Russia's entry into the WTO, one can primarily name the fact that Russia is becoming a full participant in world trade. By the way, the Russian Federation entered the trade union of the last of the countries of the so-called "Big Twenty", with a noticeable delay. The WTO is markets around the world that are open to Russian goods, as well as open access for foreign investors who want to make influence in the Russian economy.
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Also, the WTO is about increasing competition in any field. For example, unreasonably high rates on domestic credit products are partly due to the complete lack of competition among 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 embark on the path of modernization, which means that all domestic goods will be forced to meet international quality standards. That is why joining the WTO is especially beneficial for ordinary people.
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In addition to improving the quality of goods, there are other advantages. Various imported goods, which are quite expensive today, will cost the buyer less, since duties on their import 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 the image of Russia in the world, which affects all types of relations between our country and others.
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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 be completely uncompetitive, which will lead to their ruin. The absence of duties on imported goods may lead to the fact that the price of foreign goods in the domestic markets of Russia will fall, and local production will become simply unprofitable. The agricultural sector and the auto industry may be particularly affected. The country's budget may decrease due to the fact that duties on import and export of goods will be canceled.
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To summarize, we can say that the WTO, like a litmus test, will show the Russians how good products they actually produce and consume. It may turn out that analogues from other countries are much cheaper and better. If Russian enterprises are not able to bring their products to an acceptable level, they risk not sustaining the competition and go broke. Nevertheless, accession to the WTO, subject to state support for domestic business, promises a healthy economy and better welfare for ordinary citizens. In any case, the results will become noticeable no earlier than after 5-8 years.
