Russia getting closer to WTO membership : what are the practical implications?

Abstract

Russia has cleared an important hurdle in its path to membership of the World Trade Organization (WTO), the signing of the bilateral agreement with the United States.It will still take some months at minimum to finalize Russian membership, and even longer for the effects of membership to be realized.Russia's progress in the WTO negotiations is an important positive sign for international actors of the country's willingness to further integrate with the global economy.Russia has committed to lowering its average import tariff on agricultural and industrial goods by 3 percentage points, but with transition periods.Russia will also liberalize its service sector, but still reserve the right to some restrictions.It is widely believed that WTO membership will have a positive impact on Russia's economic development by enhancing competition and efficiency in the economy and by increasing foreign direct investment (FDI) flows to Russia.Some fears have also been expressed on the ability of domestic companies to survive with the growing competitive pressure.The consequences of future membership will not, however, be dramatic or instantaneous. Keywords: Russia, WTO, trade policy