Analysis The Opportunities And Challenges For Russia After WTO Accession

This paper attempts to find out the opportunities and chanllenges for Russia after jouning WTO. Based on Russia joined World Trade Organization, what opportunities and challenge are for Russia? The author selected WTO opportunities and challenges related domestic and foreign literatures and focused on representative scholars of different period, different countries joined World Trade Organization`s research conclusions. Joining to the WTO will bring benefits and disadvantages to Russian’s economy and trade.This paper adopted qualitative research method_-- case study. The author analysed China, Kyrgyzstan and Vietnam. We analysed difficulties of the Russia’s negotiation process and commitments, the opportunity and challenges for Russia after Joining WTO and trade relations between China and Russia. The research goal of this paper is to further clarify the nature and role of the WTO and put forward the author’s own views and ideas about Russia’s accession to the WTO.Further to, based on Russia joined WTO faced of opportunities and challenge specific theory framework, the author compared different countries different periods faced joined WTO opportunities and challenges, used qualitative analysis. We argued that Russia’s accession to WTO will face all kind of aspects of opportunities and challenges and produce some important effects. Finally the author suggested how to respond to opportunities and challenges after accession to the WTO and put forward eight proposals.The author found out that each WTO member must accept the rules of international trade, implementate WTO commitments, open markets, reduce tariffs, improve the domestic investment environment,which help to reform the economic system WTO members. It will play a facilitating role. Accession to the WTO helps to rationalize the relationship between trading partners and promote bilateral and multilateral cooperation.Accession of Russia to the WTO and its integration into economic globalization are inevitable choices. If not, Russia might be reduced to a forgotten corner in a globalized world. Russia, as a major economy, can not remain isolated from the world trading system.Research results showed that Joining to the WTO will bring benefits and disadvantages to Russian’s economy and trade. So the author’s research on “analysis on the opportunity and challenges for Russia after joining WTO ” is a very actual theme. Analysis of this theme will help to facilitate Russia’s participation and utilization in the WTO, help Russia to achieve expected benefits.Research showed that many countries applied for joining the WTO to get opportunities to improve foreign trade environment, promote domestic economic reforms and etc. However, joining the World Trade Organization can really play a role if the country implements WTO commitments, conscientiously abide WTO rules and continue domestic reforms.Russia’s accession to the WTO is intended to promote domestic economic growth, the construction of Russia’s "new economy", to obtain a more stable and equitable international market environment. In fact, WTO will bring pros and cons for development of Russia. But overall, the benefits are more than disadvantages. On one hand, opportunities after joining the WTO are: to promote domestic economic reform; to transform economic growth; to promote technological innovation; to promote domestic trade laws and rules of continuous improvement; to comply with the international trading system; to improve the institutional environment; to enhance the ability to attract foreign investment in Russia; to promote Russia as a regional economic development platform; to encourage enterprises to improve efficiency and enhance competitiveness and to promote the great development of the service industry. While, with the liberalization of foreign telecommunications, insurance, transportation and distribution services, the Russian people will enjoy more high quality of service. Russia had the right to use the dispute settlement mechanism to protect its own interests, to participate in the formulation of WTO rules.However, for the gains, Russia also has to pay a price. The author thinks that the challenges for Russia are considerable impact from foreign counterparts to some long-term protection industries. These industries include the defense industry, aircraft manufacturing, automotive, machinery manufacturing, agriculture, light industry, banking and insurance industries. After the Russian accession to the WTO, in accordance with its commitment to the market, oil and natural gas prices in Russian will be in line with international prices. As a result, domestic energy price increases, further pushing up the cost of the product and the rising of inflation. The result is that the international competitiveness of domestic goods become weaklly and further strengthen resource characteristics of the Russian economy.Through research, we draw the following conclusions:WTO is a blend of "rule-based" and "member-driven" complex of the two properties. If we compare WTO with the predecessor GATT, we can find out that WTO has a stronger international legal status, more complete form of organization and more automatic and effective dispute settlement mechanism. Thus it is regarded as one of the current most influential international economic organizations. But on the other hand, the actual operation of the WTO is not the manner of an international organization. It is still more performance for the nature of the intergovernmental bodies or agreements. Members of the WTO would compliance rules and principles of this organization. They also would play their own role and clear the appropriate strategy in order to achieve the national interests in the multilateral trading system.Russia’s accession to WTO will brings advantages and disadvantages, but overall, advantages outweigh disadvantages.