International cooperation in the field of trade with1947 to 1995 was governed by the decisions of the General Agreement on Tariffs and Trade (GATT). The need for cooperation in this field was proved by the economic crisis of 1929, and the United States and Britain initiated it in 1944. On 1 January 1995, an agreement was signed in Marrakech to establish the World Trade OrganizationWTO). By early 2012, its members are 156 states.
Instructions
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Membership in WTO implies a balance of rights and obligations of all member countries of the agreement. Any state or customs union can join this organization on certain conditions. For example, WTO are the European Union as a whole and each country that is part of it.
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Before the start of negotiations on accession to the WTO state can become an observer with thisorganization. This stage is not mandatory. It is necessary for the government of the applicant country to become better acquainted with the activities of the organization and decide whether membership is beneficial to the state.
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The status of the observer is granted for 5 years and entitles to attend meetings of all bodies WTO, With the exception of the Committee on Budget, Finance and Administration. Observers can apply for technical assistance to the Secretariat and are obliged to pay contributions for services rendered to them.
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The further accession process can be divided into four stages. The government submits an application describing all aspects of the country's trade and economic policy relevant to the field of activity WTO. The Memorandum is considered by the working group, which makes a conclusion about the possibility of the applicant's admission to the organization. Participation in these groups is available to all Member States WTO.
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2. After the working group has made a preliminary conclusion, bilateral negotiations begin between the participating countries and the applicant. They concern changes in tariff rates, access to markets and other problems in the sphere of goods and services. Negotiations can be very lengthy and complex, as they must prove the benefit of all members of the organization from the adoption of a new state.
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3. When the working group fully studies the trading conditions of the applicant, and bilateral negotiations are successfully concluded, the terms of entry are finalized. The group prepares a final report, a draft membership agreement and a list of obligations of the new member of the organization.
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4. The final package of documents, consisting of a final report, a protocol and a list of commitments, shall be submitted to the General Council WTO Or the Ministerial Conference. If at least 2/3 of the participating countries voted for the new member, the applicant can sign the protocol and join the organization. However, in many countries it is necessary to ratify this decision by the parliament so that it will enter into force.
Tip 2: What will Russia bring to the WTO?
By the end of July, internationalRussia's obligations, which it takes on itself as a new member of the World Trade Club - WTO. The World Trade Organization today unites more than 150 countries, which account for almost 95% of international trade turnover. The question of what will bring Russia accession to the WTO, worries many of its citizens.
If in a nutshell to predict the situation,we can say that it will be easier for consumers, and for producers it will be more difficult. The domestic market will no longer be able to protect fixed tariffs set by artificial means and administrative decisions. The state will be able to provide very limited support to certain enterprises. All this will lead to a logical growth of market competition. Many changes will come during the preparatory period, which will last from 3 to 7 years, so there are no sharp qualitative and price jumps expected. But some advantages the Russian consumer can see at once: it is expected that the duty on import of imported cars will initially be reduced from 30 to 25% of their cost, and in the next several years to 15%. The maximum rate of duty on medicines, imported from abroad, will also be cut in half - from 10 to 5%, 30 times will be reduced duties on imported beer. However, the changes and adjustments that life will make are likely to compensate each other during the preparatory period and the consumer will not feel much relief. Reduction of duties, strangely enough, promises to benefit the Russian budget: it becomes unprofitable to work on gray schemes, and imported goods will pass customs through legal means. The Russian producers of goods and services, as well as foreign companies operating in Russia, will have to be heavier. For example, those who work in the automotive industry will be deprived of benefits that relate to the industrial assembly regime, in which parts of Russian production were used. It will be hard for machine builders: under threat of aircraft construction and the production of agricultural machinery and aggregates, these industries are not at all competitive. Loss of sales markets threatens the chemical, textile and metallurgical industries. Banks, insurance companies and other lending institutions will be pressed - the share of foreign capital in these industries increases from 25 to 50%. But it will be very hard for producers of agricultural products. True, it is envisaged that the volume of state subsidies to this sector will increase from $ 5 to $ 9 billion, but this temporary measure, calculated only for the first two years. Then the size of subsidies will be restored at the same level and the producer will be in the same conditions before the threat of cheap imports of products from abroad.
Tip 3: Why does Russia want to join the WTO?
Russia joined the WTO. This was an urgent necessity for the country to enter the world market with its goods and modernize the economy. Membership in this world organization will allow the Russian Federation to get off the raw needle and develop industry.
Russia's accession to the WTO has many pluses and citizenscountries are well aware of them. Membership in the organization will add confidence to rich foreign investors, as this ensures that the country complies with the rules of international trade. In Russia, foreign employers will come, who have long wanted to create production facilities on the territory of the country. Transnational companies usually pay a lot more than Russian employers. They strictly abide by the norms of the TC and monitor the production safety. To retain qualified employees, Russian enterprises will also have to increase their salaries. The main advantage for Russians from joining the WTO is a reduction in duties on the import of goods, which, of course, will lead to lower prices for the necessary products imported from abroad. For medicines duties will be less by 5-15%, on computers within 3 years the surcharge will be removed completely. Thus, competition is created in Russia between foreign and domestic producers, as the prices will be approximately equal. Previously, consumers often chose Russian goods because of their lower cost. If domestic companies want to stay on the market, they will have to tighten up the quality and presentation of their products without increasing the price. WTO access will also help serious agricultural producers of Russia, as seeds, machinery, fertilizers purchased abroad will become cheaper due to lower duties. Also, rural enterprises will enter a new market, because there are companies in Russia that are ready to export their products and compete with foreign firms. Modern technological, scientific, construction, measuring and computer foreign equipment will be cheaper for domestic enterprises. Therefore, they will develop faster. Modernization and innovation will help Russian plants improve their products. They will also get new markets. The most favorable prospects are opening up for the Russian petrochemical and metallurgical industries, since the accession to the WTO will strengthen the country's firm position in world production. Russia takes a rather long period to move to a new level in world trade. A number of industries will go to this eight years to avoid shock and negative consequences.
Tip 4: How WTO Accession Will Affect Agriculture
On August 22, Russia officially joined the WTO, thatbecame the logical conclusion of the 18-year process of the most difficult negotiations on joining this organization. Along with the undoubted advantages for consumers, the country's membership in the World Trade Organization can be a serious test for a number of sectors of the country's economy, particularly for agriculture.
Russia's accession to the WTO will affect the economycountry is ambiguous. In general, this is an undoubted plus, especially for the consumer - the goods will become cheaper and better, as many import duties will be abolished, competition among producers will increase. Russian companies will have free access to the foreign market without discriminatory fees. At the same time, for a number of branches of the economy, this event will be the strongest blow. One of such industries is agriculture. It has been known for a long time that Russia's accession to the World Trade Organization will have a negative impact on the agro-industrial complex. Under the terms of WTO accession, support for agriculture should not exceed a certain level. But this level is determined through negotiations, there is no single standard for all countries. It was not possible to achieve a positive result in this issue. If until 2012 the government could allocate about $ 9 billion a year to the AIC, then from 2013 to 2017 this amount will drop to 4.4 billion. The same Switzerland, for example, the area of arable land in which incommensurably less than in Russia, can spend up to 5.8 billion dollars to support its agricultural producers. The US can allocate $ 19 billion for these purposes. All this certainly puts agricultural producers of Russia in unprofitable conditions. After accession to the WTO, a number of import duties on agricultural products have been canceled, which will lead to lower prices for a number of products. It will please the consumer, but Russian agricultural producers will receive tens of billions of dollars in losses. In particular, producers of meat and milk turned out to be in a disadvantageous situation, poultry farming will suffer a little less. In general, Russia's admission to the World Trade Organization will be a very difficult test for the country's agriculture. It should be noted that in the WTO accession negotiations, Western countries were particularly adamant about the issue of state support for Russian agriculture. They can be understood: given the vastness of Russia, with good government assistance, its agrarian sector could overwhelm the European countries with cheap and quality agricultural products. Western negotiators could not go to this, eventually they managed to defend their positions. Now Russian producers of agricultural products need to learn how to function in new conditions, the government will have to work with indirect ways of supporting agricultural producers. Namely: with the training of personnel for the agricultural sector, the introduction of insurance programs, phytosanitary and veterinary activities, the improvement of infrastructure in the countryside, etc. Some experts believe that Russia, even in the new conditions, has every chance of making its agriculture profitable and competitive.
Tip 5: Why do we need the WTO
Russia joined the WTO on August 22, 2012. For 19 years, the government of the Russian Federation has achieved this. Naturally, for such a long period the problem has ceased to be only economic or political and has acquired a special social character. Discussions on the topic "Do I need to join the WTO?" Were held not only among politicians, but also among ordinary citizens.
Members of the WTO have a number of privileges. Having become one of them, Russia, too, was able to obtain special advantages, thanks to which it became possible to significantly improve the state of the economy. In particular, we are talking about more profitable trade and getting the best conditions for the penetration of Russian goods into the foreign market. This will allow to make the production of domestic production more qualitative and competitive over time. Reduction of customs duties and even their cancellation will allow Russian producers to reduce prices for their products and make the market more open. As a result, the state of the business will improve, as well as the state of the economy as a whole. The entry into the WTO will help attract foreign investors, which will positively affect the level of Russian goods and services. At the same time, investors from the Russian Federation will get very broad opportunities in various areas, and this will contribute to the prosperity of the business. In addition, thanks to joining the WTO, Russia's reputation will improve significantly, and this, in turn, will favorably affect the attitude towards Russian goods, services and investments. Russia will also have the opportunity to adjust the rules of trade with other countries, taking into account its own interests. The entry into the WTO is associated with the inevitable modernization of the economy. It would be disastrous if Russia were not ready to move to a new trading system and to adopt international norms. However, the government worked over two decades to develop measures to improve the economy and prepare the country for WTO accession, so there should be no negative consequences. At the same time, Russia will be in a better position than before, because it will be able to firmly defend its rights and, if necessary, seek help from an international commercial court.
