After the news of a 10.1% decline in Russia’s economy for the first half of 2009, perhaps Russia realizes how valuable joining the WTO would be for supporting economic growth. As was the case with China, WTO entry can serve as an external catalyst forcing change and international standards to domestic industries. While WTO entry supports international trade with the new WTO member, it also supports competition by allowing foreign companies to compete with local companies.
It may be a challenge, however, for Russia to remain focused on WTO entry with its significant banking problems.
Russia Hopes To Join WTO By Next Year
By ANDREW LANGLEY, Wall Street Journal
MOSCOW — Russia could join the World Trade Organization by mid-2010 if the U.S. delivers the backing it has publicly promised to Moscow’s long-delayed bid, First Deputy Prime Minister Igor Shuvalov said.
Mr. Shuvalov, in an interview, also said high energy prices were a danger to the long-term development of Russia’s economy, which must be weaned from its dependence on oil and gas.
Russia, which has been negotiating for 16 years to join the WTO, is the biggest economy outside the 153-nation group. But Russian Prime Minister Vladimir Putin shocked U.S. and European officials shortly afterward by saying that rather than seeking entry by itself, Moscow would seek to join as part of a customs union with Kazakhstan and Belarus. Last week, however, Russian President Dmitry Medvedev called the customs-union plan “problematic,” saying Moscow will likely continue with its nearly complete talks to join independently.
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