Russia and WTO The cost of joining expected

Russia and WTO: ”The cost of joining, expected accession prospects and first results” Prepared by students Stolyarov Egor and Max Charevich from group 1303

few words about WTO • The WTO was born in 1 st January 1995 out of negotiations • The main aim of WTO is to liberalize international trade and to regulate trade and political relations between the Member States of WTO • Nowadays 159 countries, including Russia, are members of WTO

Plan of Presentation We have divided our presentation on 6 parts: A. WTO History B. Potential benefits C. Potential threats and obvious shortcomings D. The arguments of Russia's WTO accession E. Ways to solve the problem of " Russia -in- the WTO" F. Conclusion

A. WTO History The World Trade Organization (WTO) was officially commenced on 1 January 1995 under the Marrakech Agreement, replacing the General Agreement on Tariffs and Trade (GATT), which commenced in 1948

B. Potential benefits q improving the competitiveness of Russian enterprises q more affordable entry into foreign markets q reason for Russian entrepreneurs to comply with legal standards in the conduct of business qargument when joining the OECD

C. Potential threats v threat to the inability of many domestic manufacturers to restructure and achieve competitiveness due Transition v the majority of countries before joining the WTO held economic modernization and have products which can enter the world market v countries embarking on the path of the first free trade , before it took a long, lasting several centuries , the period of protection

D. The arguments of Russia's WTO accession § Lack of alternatives: the Russian economy has become part of the global economy § Inability to further delay the entry into WTO : Russia went to this 18 years § Over the 18 years of work achieved considerable success : the regulation of access to natural resources and their development will be determined by the Russian government and Russian legislation § Opportunities for Economic Growth in Russia § The WTO does not prohibit protectionism as such - only limited methods that must be adapted to the rules of the organization

25% Reduction of duties after WTO accession 20% 15% before 10% after 5% 0% milk production corns chemical production cars electrical machinery and equipment

E. Ways to solve the problem of "Russia -in- the WTO" Ø The first step is to restore agriculture Ø Undertake a full analysis of the major Russian industries to determine their potential and current status Ø Important decision in the way of the Russian economy to its "bright future " will be to develop a legal framework that would really stimulate economic growth Ø Due to recent world events , it is necessary to strengthen economic cooperation with the countries of Asia and the Asia-Pacific region Ø create a favorable investment climate

F. Conclusion • Russia after WTO accession will have, as the negative effects (temporary downturn in the economy) and positive effects: • GDP growth • increase the competitiveness of enterprises • cancellation of a number of U. S. economic sanctions since "Cold War

Thanks for attention!!!