After 18 years of negotiations, Russia became the 156th member of the World Trade Organisation (WTO). The reactions of international players are optimist and reveal a pragmatic approach.
Russia’s accession to WTO is a signi-ficant step towards Russia’s deep integration into the world economy. This will facilitate investments and trade, will help accelerate the modernisation of Russia’s economy and will offer many business opportunities both to Russian and European companies”, declared EU’s Commissioner for Trade, Karel De Gucht.
“Russia’s accession creates many opportunities so that American companies could sell their products and services in Russia”, declared the American representative for foreign trade, Ron Kirk.
According to a review of the World Bank, starting with March 2012 Russia will get a yearly 11% of the GDP (USD 162 Billion) after trade growth. For Vladimir Putin Russia’s accession to the WTO is an important point on his personal agenda which includes bringing Russia among the first five world economies with an annual average growth of 6%.
Russia is the third trading partner of the EU and the EU the first trading partner of Russia. The EU is the largest foreign investor in Russia, with investments worth around EUR 120 Billion in 2010. Russian investments in the EU amounted to EUR 42 Billion in 2010.
EU exports to Russia in 2011amounted to EUR 108.4 Billion, EU imports from Russia in 2011 to EUR 199.5 Billion, while total trade in goods in 2011 stood at EUR 308 Billion. The main changes related to the WTO accession of Russia concern market access improvements for goods and ser-vices. The import duties for goods will decrease from a current average of 10% to an average 7.8%. It is estimated that the global reduction of tariffs will offer EU exporters savings of EUR 2.5 Billion per year plus import charges.
The accession will have a positive effect on the trade and investment conditions between Russia and the European Union. Russia’s geographic position and the importance of its market as regards volumes and growth potential make it a very important EU trade partner. As a consequence of its accession, Russia will reduce import charges, among others; it will also limit export charges, grant a broader market access to EU services suppliers and facilitate the implementation of rules and procedures in several areas of the bilateral economic relationships. Regulations on customs procedures and the development of railway freight transport between Russia and EU member states will have special importance in the future.
Moreover, Russia’s accession to the World Trade Organisation also attracts the opportunity of opening accession paths for Belarus and Kazakhstan, these countries being part of the Customs Union, next to Russia.
The European Parliament has used a report to suggest to the Commission to support Russia’s efforts to the Organisation for Economic Co-operation and Development (OECD).
Russia’s accession to the World Trade Organization will have a positive effect on transit cargo volumes and Latvian Ports can count on a 5-10% increase, even though the insufficient capacity of railway infrastructure could prove hampering, Latvian Association of Ports CEO Karlis Leiskalns declared.
If the world’s ninth largest economy becomes part of the organization, it is clear that trade volumes will grow, which will have a positive effect on the development of Latvian ports, said Leiskalns.
He also pointed out that Russia subsidizes and influences its ports, since its transport sector is based on political decisions. “If Russia does not artificially affect cargo handling and sets its tariffs in accordance with WTO procedures, the country’s accession to the WTO will benefit us,” explained Leiskalns.
Referring to the development of railway infrastructure, he said that it was necessary to ensure a performing infrastructure for the safe and fast traffic of trains.
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