At the end of August 2012, Russia became the 156th member of the World Trade Organization (WTO). The long period of negotiations and approvals preceding this event ended. Experts-economists expect this event to improve the economic climate in connection with the expected arrival of foreign investors in the Russian market. But there is still no unanimous assessment of how accession to the WTO will affect Russian producers, and, in particular, those that work in the agricultural sector.
Instruction manual
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Support for Russia's agribusiness was one of the contentious issues hindering its entry into the WTO. Currently, the state allocates 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.
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Experts believe that now it will become much more difficult for Russian agricultural producers to sell their products. Cheaper products from Europe are pouring into the Russian market, where agriculture is traditionally more developed, which, of course, affects production costs.
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Joining the WTO will reduce state direct subsidies to producers, but increase indirect financing of the agro-industrial sector of the Russian economy through investment lending to production facilities. At the expense of these funds, vegetable stores, packaging and processing lines will be built to store, pack and process more vegetables and fruits. In addition, within the framework of the WTO, the village can receive assistance from the state in the form of equipment modernization, subsidizing interest on loans, financing agricultural universities.
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Membership in the WTO will allow domestic producers to supply products to the markets of other countries - members of this organization. Today, Russia is ready to supply grain, export poultry and pork. In the future, export of milk and dairy products is possible. The expansion of potential sales markets, in general, is beneficial to Russian agricultural producers. Moreover, upon entry into the WTO, a transitional period is provided in which measures are taken to increase the labor productivity of Russian farmers and the competitiveness of their products.
