What is the WTO and what it eats?

What is the WTO and what it eats?

After the war, Russian majestically to regulate trade between the countries was signed the General Agreement on Tariffs and Trade (hereinafter — GATT). The agreement was a mechanism to contain one-sided actions at the multilateral exchange of goods. Since the agreement has stood the test of time and served as a revitalization of world trade in 1994 to the "Uruguay Round" created by Global Trade Organization (hereinafter — the WTO).

WTO is not only the organization, and the package of legal documents, representing a multilateral agreement on trade in products and services. General agreement on trade in products (GATT) on Trade in Services (GATS), in mental accessories (TRIPS) are the basis WTO. All member-states (in the current time of 153) have ratified this Agreement.

Any member country receives guarantees of a fair case for their own exports to the markets of other countries and is committed to provide the same conditions for imports on its own market.

WTO trading system has both its advantages and drawbacks.

The advantages of the WTO shall be considered:

— inflow of economic benefits by reducing the barriers to implementation of goods;
— price decline of life, by reducing the cost of products and services;
— lowering of trade tariffs leads to increased trade and, as a consequence, increase the income of the country and every citizen of the country;
— reduction of domestic political lobbying for the Economy;
— system equalizes the rights of all countries within the WTO, regardless of their level of economic development;
— provides a preferential mechanism for the role of developing countries in the WTO system;
— availability of effective dispute resolution mechanism.

Disadvantages WTO:

— lowering of customs barriers provides an outlet for the domestic market of the country more than a cheap and high quality products WTO member countries, which leads to the ruin of Russian producers, and, consequently, to an increase in unemployment;
— advanced countries produce municipal support in principle for the economic security of industries, while at the same time denying it to new members of the WTO;
— multilateral agreements violate the basic principle of the WTO — the same rights and obligations under the regulation of customs duties as a regulator of prices for products and services.

Our homeland no hurry to join the WTO, as not lust, that membership in the society infringed the interests of Russian industries.

For example, during the negotiations on customs duties on passenger cars Our homeland has agreed to progressively lower values fees. But in the criteria of the current crisis, so to protect its own producers, raised in one-sided manner duty from 25% to 35%.

A good result was obtained under the agreement on industrial assembly concluded by Russia. This arrangement is permitted to import large conglomerates auto components on the area of the Russian Federation at a zero rate of customs duties. As a result, foreign companies have made the manufacturing facilities in Russia for production cars are the best global brands.

Also in the interests of Russian aircraft industry reduced duties on imports of aircraft, as airlines require fleet renewal.

Agriculture Minister will be protected if the results of the negotiations the parties come to an agreement on lowering taxes only on those products agricultural industry, which does not affect the core products are grown and consumed by the population of the country.

What is happening with the economies of the countries of post-Soviet space, which have already become members of the WTO.

Thus, Ukraine became a WTO member in 2008. The result of 3 years of membership are:

— loss of 10 thousand jobs;
— ended their existence 10s big factories and hundreds of smaller facilities;
— profit from lowering taxes on the supply of Ukrainian products to the markets of WTO half as much as the loss of import of products and services (negative balance);
— Ukraine's GDP declined by more than 15%;
— significantly reduced the level of competitiveness of Russian products;
— industry suffered production sector.

All this happened due to the fact that Ukraine joined the WTO in a very unprofitable himself criteria. At that time there was a strategy of economic development of the country. The top political ambitions took control of the country over the sober calculation and experienced negotiating about the criteria to join the agreement.

Since WTO rules one every three years, you can change the conditions of the country's role in the WTO, Ukraine has a chance to adjust Agreement.

One of the affected sectors of the economy of Ukraine was the auto industry. At the request of the WTO import duties on imported cars from other countries decreased from 25% to 10%. The result was a reduction in the production of the Russian automotive industry is 6 times and a decrease in working in the industry in half. The enthusiasm of investors ran from production in imported finished products. This served as a prerequisite for the transition from the issue of Russian industry of high-technology engineering products to the secondary.

Agro-industrial complex is also significantly lost their positions. For example, lowering import duties on raw sugar led to a halt fifty plants in the country, producing sugar. Suspended sugar exports by the state, which has long been a favorite in the manufacture and sale of sugar.

Experts believe that Ukraine maintains a leading position in the meat, grain and other agricultural products.

Duties on imports of meat in Ukraine is 8 times smaller than the duty on Ukrainian exports of meat to other countries. Bacon imported from Poland, the Netherlands, Germany flooded the market of Ukraine.

Another condition is unprofitable for Ukraine Agreement — is Ukraine's commitment not to provoke their agriculture, while the U.S. and European countries, WTO members help their farmers.

Imports of agricultural machinery carried out of the WTO at the zero rate duty, which actually destroys the Russian agricultural machine.

Also, set the zero duty on import of furniture (prior to the entry into the WTO, it was 40%), has become a prerequisite for reducing the amount of furniture Ukrainian producers. Ukrainian furniture market filled furniture made in China, Italy and the Baltic states.

In languid position was and light industry. The decline in production was 45%, while the import of products of light industry increased by 46%.

Negative consequences of Ukraine's role in the WTO system are found in wine, food, dairy, aerospace industry.

Exclusively in the import of sunflower oil Ukraine managed in the three years to take a leading position in the world. The principal factor of success was the timely modernization of production facilities industry to the country's accession to the WTO.

Ukraine is not the only country that longs to change the terms of previous agreements WTO. For example, Argentina, Chile and India was able to increase import duties on sugar to protect its own domestic market.

Ukraine faces in the negotiations is not an ordinary task — to correct the condition the country's role in the WTO towards the creation of equitable criteria for the competition, and changes in legislation in the field of product certification services to ensure that at the current time to create the export prod
ucts of winemaking Ukraine on an outdoor market. Access Ukrainian wine is closed due to the severe test to product certification, established by the WTO member-states. At the same time, imports of wine in Ukraine has increased to 30%.

The result of WTO accession Kyrgyzstan was:

— errant increase in exports for the most part at the expense of trade with the CIS countries;
— were not protected against external intervention in important sectors of the Kyrgyz economy: agriculture, the financial sector, processing industry and telecommunications;
— great flood of cheap products zabugornogo production ousted Russian products, particularly affected agriculture;
— Kyrgyzstan's export products to which WTO countries reduced tariffs, do not stand on konkurentnst zabugornyh markets;
— the expected inflow of investments in the development of the sectors of Kyrgyzstan is not justified — investors are not intrigued by the domestic market.

Georgia joined the WTO in 2000. The haste in the negotiations has led to the need to perform the duties that are harmful to the economy.

Because Georgia has not met the conditions of the introduction of special duties on raw materials, computer equipment, agricultural equipment, pharmaceuticals and civilians aviation.

Georgia also failed to meet the country's transition to a system of international accounting standards and certification, has not carried out the anti-dumping measures. Investors have been slow to invest in the Georgian economy. Trade balance remains negative.

Moldavia is a member of the WTO since 2001. Talk criteria were long due to the fact that the Moldovan businessmen opposed the country's membership in the WTO. As a result of negotiations Moldova managed to defend the right of economical support for agriculture. Also managed to defend against external intervention furniture business and market alcoholic products.

In the area of banking services to the country has established a strict requirement to foreign banks — the license of the State Bank of Moldova.

Also, the undisputed success of the Moldovan negotiators became zero duty on all products sold in the EU. This allowed significant increment of Moldova exported its products.

After long and difficult negotiations Armenia joined the WTO in 2003. Armenia have gained preferential customs duties and delay the opening of its own telecommunications services market. WTO membership is not lured into the country investment. Not changed the volume of exports. Effective trade balance was negative, as it should, imports exceeded exports significantly. This is connected with the fact that the products of Armenia konkurentnst not stand on the outside market. The country expects to get out of this failure by the availability of a cheap labor force and low production costs.

The experience of the former Soviet Union is not critical to the decision of Russian accession to the WTO, but the Russian authorities will try to avoid haste in agreement that would infringe upon the interests of the country. Being a member of the WTO — is to have access to the markets of the participating countries. But that does not mean the growth of investment in the economy and the fact that the products and services of the Russian Federation will be able to capture the outdoor market. To do this, you need to have a competitive sectors of the economy and the preservation of economic and political independence in matters relating to the security of the country and every citizen.

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