Russian Industries May Rile WTO by Undermining Trade Pledges

For nearly 20 years, Russia has worked on its bid for membership in the World Trade Organization. If approved by trade ministers in December, its entry will be the biggest step in global trade liberalization since China’s admission, according to the World Bank. Russia’s economy grew by more than 4 percent in 2010 and WTO membership could expand that to 11 percent by 2020. Oil and gas account for more than half of Russian exports and those industries would no longer be subject to export tariffs. However, some manufacturing and agricultural companies seek an adjustment period before adhering to WTO rules, reports Bloomberg Businessweek. Foreign competition could eliminate the remnants of inefficient Soviet-style manufacturing firms still operating in Russia, and farmers worry about WTO caps on state aid. The US, Europe and even Georgia, which clashed with Russia in 2008, approve of the pending membership. Russians, like consumers everywhere, will have mixed feelings about an anticipated deluge of low-cost imports. – YaleGlobal