Russia Clears Last Hurdle for W.T.O. Membership

[pampango]

Source: New York Times

Russia on Thursday cleared the last major obstacle in its 18-year effort to join the World Trade Organization in what the head of the institution called a milestone for global trade. ... Russia had “broken the Chinese record of 15 years” needed to join the organization because Moscow was not originally convinced of the advantages of membership.

Russia’s trade negotiator, Maxim Medvedkov, said during a news conference that China’s economic performance since it joined in 2001 had helped to convince Moscow of the importance of getting a deal. “China’s accession really boosted trade and investment, and it was one of the factors that was taken into account in our decision making when we decided to join and to complete these negotiations,” he was quoted by Reuters as saying.

Joining the W.T.O. crowns a long period of transformation for Russia, which first applied for membership in June 1993 under the late President Boris N. Yeltsin, and marks its arrival as an up-and-coming “BRIC” country, referring to Brazil, Russia, India and China. To win W.T.O. entry, Moscow has had to overhaul its national laws to bring them into conformity with the global trade regime as well as work out bilateral market-opening deals with all the members of the body.

Another 26 countries are currently negotiating to join the W.T.O., but Russia — a permanent member of the United Nations Security Council and a member of the Group of 8 leading countries — was by far the most important still outside the global trade regime, which seeks to reduce barriers to international commerce and provides a forum for resolving disputes.

Read more: http://www.nytimes.com/2011/11/11/business/global/russia-clears-last-hurdle-for-wto-membership.html

[madrchsod]

1. great another cheap labor country joining the wto

[freshwest]

2. IDK why they want this, really.

[pampango]

3. "Moscow was not originally convinced of the advantages of membership", but "China's accession really

boosted trade and investment, and it was one of the factors that was taken into account in our decision making when we decided to join and to complete these negotiations,” he (Russia’s trade negotiator, Maxim Medvedkov) was quoted by Reuters as saying.'

Can the W.T.O. Change Russia? (NYT Op Ed)

http://www.nytimes.com/2011/11/10/opinion/can-the-wto-change-russia.html

"The current political elite is little inclined toward economic liberalism. The coercion of foreign investors in favor of national economic champions, protectionism during the 2009 economic crisis and Russia’s willingness to engage in trade wars with neighboring states have demonstrated this. They have long seen W.T.O. accession as a political rather than technical process: For them, tariff reductions are concessions to trade partners, rather than a means to stimulate trade and competition.

Industrial and agricultural lobbies have opposed entry, claiming that Russian companies require more time before facing global competition. However, little has been done to make Russian industry more efficient in the last 18 years, even without unfettered competition.

The challenges of membership are not limited to economic policy; they also undermine the political model that has come to define Russia since 2000. Under Putin, Russian citizens accepted reduced political freedoms in exchange for stability and economic growth. Within the W.T.O., Moscow will have fewer means to support inefficient industries against competition from abroad.

As a major oil exporter, over 50 percent of its foreign trade is already tariff free. However, the metallurgy and chemicals industries stand to gain from increased market access and protection from antidumping measures.

[freshwest]

4. Hope they won't do more environmental damage than already. I know people over there who are very...

Nationalistic, well-educated, and because of centuries of family traditions in the church have been in the military. Yet they don't want any kind of trouble with the west, they feel victimized by the various wars and hope for detente between all sides. Those are online friends, so to speak, but they've shown me sides of Russia that I never knew existed. It really is an awesome land.

I have a family friend who was in the military and met Russians during their tours. He is older and married his fiance and brought her and her children here, jumped through all the hurdles to become citizens. They and their children were well-educated and have integrated in our society almost seamlessly. They are some of the most impressive people I have ever met. They have always expected more positive relations with the USA.

Russia is so vast that it seems to be totally self-sufficient, but I suppose those at the top of the country can't allow anyone to get ahead. Perhaps they may also get some of their political goals met by joining the WTO.

People don't really have a problem with international trade, we have problems with crony capitalism, and the destruction of the environment and people's lives and the WTO sadly, has not done a thing to protect either, just profits. It's kinda been one of those, it's all for the greater good, it'll all work out in the end mantras. So frequently the selling point of the 1% and the 99% have no voice.

I read the OP for about the official reasons, which don't mean much to me. Standard sales pitch for more accumulation of power into a few hands. which has beeen the track record of all of these treaties. Displacement, impoverishment and environment damage. Less and less democratic process, just boot in the face for the poor.

We'll see how this shakes out, for all parties, if they will handle this better than some of the 'first world/third world' contracts.