As Russia was the heart of Soviet Union and it used to have economic relations only inside USSR, this isolation from the rest of the world has weakened the economy of Russia and other member countries of USSR. Today Russia is an independent country, but it still does not have many contacts with other countries from economical point of view. Accession to the WTO is critical for Russia and its political leadership. Also by the membership of WTO Russia can improve its economical and business environment but it may have to make some compromises related to free trade. President Vladimir Putin has made it a top priority to enter the WTO.
The main purpose of our project is to discuss positive and negative consequences for Russia that might result from entering the WTO, will they gain much by entering this organization or they will not. We will discuses why has President Vladimir Putin made it a top priority to enter the World Trade Organization.
[...] Foreign Ministry and the Ministry for Economic Development said the Georgian government was interested in Russia's entry to WTO, but added that if the agreement is not reached, the process of Russia's accession to WTO will be suspended.” Georgia demands that Russia stop illegal trading with its two breakaway regions of Abkhazia and South Ossetia and that all goods pass through checkpoints run by the central government. The statement comes days after Russia secured a much-sought bilateral agreement with the United States, removing the last major obstacle in Moscow's 13-year journey to join the world's biggest trading club. [...]
[...] If Russia will enter WTO it will gain much by this entrance: o Will improve existing conditions for access of Russia's products to foreign markets and provision of non-discriminatory treatment for Russian exporters; o Creation of a more favorable climate for foreign investments as a result of legal system change in accordance with the WTO criteria; o Expansion of opportunities for Russian investors in the WTO member- countries; o Creation of conditions for growth of domestic production, quality and competitiveness as a result of increased flows of foreign goods, services and investments [...]
[...] As the survey of Economist Intelligence Unit revealed the major constraints for the firms operating in Russia and potential investors are risks which are shown on the chart above. Researches of Thomas Rutherford and David Tarr In the introduction we have mentioned what would be gains for Russia if it will enter the WTO. We have found the most reliable information about this topic in the researches of Thomas Rutherford and David Tarr. According to their researches, if the Russia will enter the WTO, the average gain in welfare as a percent of consumption for the whole country will be 7.8 percent. [...]
[...] Russian government's approach about WTO entrance The accession to the WTO is critical for Russia and the political leaders of the country are trying to make all necessary changes in political and economical structure in order to receive the desired entrance in this organization. The president of Russia Vladimir Putin made this issue top priority of Russia. He views this entrance in WTO as important step in integrating Russian economy with the rest of the world and in fostering economic growth and development by attracting new foreign investments and reducing the existing trade barriers. [...]
[...] Competitive sectors subject to constant returns to scale Public services, culture and arts Agriculture & forestry Coalmining Housing and communal services Construction Electric industry Gas Crude oil extraction Oil refining and processing Other goods-producing sectors Wholesale and retail trade Textiles and apparel According to the data collected by us, we came to the conclusion that most scientists and economists agree that it is very important for Russia to enter the World Trade Organization. They will have to go on some compromises, change their economical and political attitudes toward other countries, but the gains which they can receive by this entrance worth more than all these compromises they may have to make. [...]
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