It will be easier for Russian companies to work on the global market if Russia accedes to the World Trade Organisation, Prime Minister Vladimir Putin said.
Russian export companies suffer losses of some $2.5 billion annually due to restrictions and unfair competition, the prime minister said at a meeting on Russia's accession to the World Trade Organisation (WTO). As soon as Russia joins the "trade club," it will be granted non-discriminatory access to foreign markets.
Alexei Portansky, a professor in the trade policy department at the Higher School of Economics, explained to Izvestia that the prime minister was speaking only about direct losses, while indirect losses are estimated at $4 billion. These figures were first published in 2001 and haven't changed since. At the same time, said Portansky, the longer Russia's accession to the WTO is postponed, the worse business conditions will become.
"Producers of mineral fertilisers and representatives of the metallurgical industry suffer the most," the expert said. "Their products are considered very cheap on the European market, which is why anti-dumping measures are taken against them (usually in the form of increased duties). This results in higher prices that ultimately uncompetitive.
Russian markets will not automatically be opened to foreign goods upon joining the WTO. "We will protect a number of items with higher customs tariffs," he said, adding that the country will fully maintain its prerogative to use such tools to support manufacturers. "I am referring to special protective anti-dumping and compensation measures, which are widely used by WTO countries. This is common practice for the protection of one's national markets," the prime minister explained.
According to Alexei Portansky, customs duties cover 13,000 items, and, in most cases, these duties will not be raised when Russia joins the WTO (these are the agreements that were reached during the talks). But Russia stipulated the ability to support and protect its agricultural sectors. When this historical event eventually occurs, Moscow will have to repeal additional support measures for Russian companies that were adopted during the economic downturn, Portansky said. The reader will recall that Russia increased duties on some goods by 5-10%, unlike any other country in the WTO.
Russia is known to have attempted to join the WTO for many years. Several unresolved issues remain, but, according to negotiators, the process has never been so close to its realization as now.
Yelena Shyshkunova
Third Federal Issue