Photography: Mr Lightman [freedigitalphotos.net]“ Nuria Fuente is a Professor in the area of Business Management and Logistics at Bureau Veritas University Center .”
Russia is joining the world market after almost twenty years of negotiations and becomes a member of the World Trade Organization (WTO), becoming its 156th member.
We may ask ourselves : What does Russia's accession to the WTO mean?
Russia's entry into the WTO is a decisive step towards the country's integration into the global economy, as this accession will facilitate investment and imports and exports for companies from both Russia and the European Union.
Russia's geographical position and the importance of its market chinese america data in terms of volume and growth make the trade partnership with the EU very important. This is therefore not only good for Russia, but also for the entire WTO, which could not be considered an international organisation without counting the world's seventh largest exporter among its members.
One of the advantages of Russia's entry into the WTO, according to Pascal Lamy, Director General of the WTO, is that "Russia's accession will contribute to strengthening the multilateral trading system," while the European Commission believes that "this is a decisive step towards the country's integration into the world economy."
It is also important to note that this incorporation will promote free trade between Russia and the rest of the countries of the Organization . This is a stimulus for the economic modernization of Russia since it will boost competitiveness, which will favor the national market, and this will help to slow the development of social crises and guarantee economic stability at a global level.
Another advantage of Russia's accession to the WTO is that tariffs on around 700 categories of products will be reduced or eliminated, which will lead to the removal of trade barriers that will reduce the cost of living by lowering the price of products and services.
However, it should also be noted that with trade liberalisation, Russia, which is the world's fifth largest steel producer, will see a reduction in tariffs that made its exports to WTO countries more expensive, and will therefore see an improvement in its metallurgical sales in the US and the EU. However, this will mean that European and US steel companies, which have been severely affected by the international economic crisis, will have to face additional competition from Russian manufacturers .