“To Join or Not to Join,” That is the Question For Russia

Joining the World Trade Organization (WTO) is one of Russia’s top priority reports The Telegraph in the U.K.

There are two important reasons that Russia and the WTO members has it’s eye on joining: the global economic crisis, and the creation of a Customs Union involving Russia, Kazakhstan, and Belarus – who would all like to enter as world trade members simultaneously.

This year all speeches by Russian leaders at several international forums send a clear message to the economic world that Russia is ready to participate in creating a global governance system. This means that Russia has no choice but to join the WTO.

But, Russia needs to modernize its economy, a need that became apparent with the onset of the crisis. As oil and gas prices dropped, the top two exports in Russia, the need to diversify is even more clear.

If Russia stays out of the WTO, Russian producers and exporters will face increasing difficulties in international markets. WTO membership will provide an opportunity to enter new markets, offering the potential for significant increases in export revenues.

Time will tell if and when Russia will decide to finally enter the WTO as a member or if it will continue to live outside the trading box, so to say.

To read more, click here.