The Russian Federation ratified the Protocol of accession to the WTO

27.07.2012 On the 21th July, 2012 the President of the Russian Federation V.V.Putin approved the Protocol of accession to the Marrakesh Agreement establishing the WTO of 15th April, 1994 thereby finishing the internal stages of ratification. If the state bodies wouldn’t have managed until the 23rd July, it would have led to renewal of negotiations on terms of accession to the WTO that is, according to the chairman of the Russian delegation Maxim Medvedkov, could have inflicted worse conditions of accession for the RF. Consequently, on the 22th August, 2012 the RF will officially become the member of the WTO (after 30 days from approval by the President). The membership implies introducing of crucial changes to the trade regime with the countries joining the WTO. Among the liabilities of the RF, on the basis of the Protocol, liberalization of accession to goods and services markets, reduction of tariffs, support of special economic zones can be named. The experts of the Economic Development Ministry of the RF note the further important changes: 1) reduction of import fees (for example, from 25% to 15% for new passenger cars); 2) increase of total quota for foreign capital participation (for example, in the sphere of insurance from 25% to 50%); 3) alignment of legislation in the spheres of IP, sanitary and technical regulation with the requirements of the WTO; 4) changes in the pricing policy for the energy resources.

Expert’s opinion

It is widely known, that nowadays in the Russian reality there are polar opinions on the RF’s joining the WTO. The proponents of joining insist on improving of the investment climate on account of liberalization of lots of goods and services markets and possibility of flexible application of tariffs within the agreed limits. The opponents appeal to the low level of competitiveness of the Russian business which won’t withstand the assault of foreign import that, as a result, will lead to massive bankruptcies and layoffs.
Nevertheless, we should notice that the leitmotif of accession to the WTO is direction on globalization processes, id est on creation of favorable conditions for investors, on international cooperation in such profitable spheres, as banking and insurance, which will inflict the capital inflow, increase of competitiveness in spheres subject to stagnation (for example, the Russian production of passenger cars).
In addition, soon the cancellation of Jackson-Vanik amendment by the USA is expected that indicates reluctance of the American business to surrender to the European competitors by the moment of the RF’s joining the WTO.
Moreover, the membership in the WTO will allow the Government to use the petrodollars effectively to invest abroad to ensure the functioning of excess of money supply from the petroleum export.

On the basis: http://asozd2.duma.gov.ru/main.nsf/(SpravkaNew)?OpenAgent&RN=89689-6&02

Julia Akhmetova ( Paralegal of Moscow office of Honest & Bright Ltd)