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China Daily Website

WTO membership win-win step for Russia, world

Updated: 2012-08-22 15:47
( Xinhua)

MOSCOW - After 18 years of pursuit, Russia became the 156th member of the World Trade Organization?on Wednesday, which will yield win-win results for both Russia and the world.

As a permanent member of the UN Security Council and one of the Group of Eight (G8) leading countries, Russia was the last major economy to enter the global trade group.

Although many Russians claim that the accession will hurt sectors of the domestic economy and even undermine national sovereignty and security, the entry will benefit Russia, which started its marathon bid in 1993.

In the short term, Russia is not likely to get immediate benefits from the accession and certain sectors of the economy may suffer pains as the country has to gradually lower its average tariff ceilings. Its budget revenues could also see a considerable drop as some experts have estimated.

But in the long run, Russia's WTO entry will elevate its all-round economic competitiveness, facilitate its economic restructuring and transformation of growth patterns, and ultimately realize its ambition of ascending to one of the world's top five economies.

The accession is also expected to help attract more foreign capital and advanced technology to Russia, boost its trade and investment, promote industrial reform, and accelerate the formation of a transparent and open market environment.

Russia has realized that in an age of economic globalization, a self-seclusive and isolated economy cannot become powerful. Only by involving itself in the modern and inter-related economic world, can the former world power achieve its ambitious goals.

That's why Russian leaders never ceased their efforts in pursuing WTO membership. They believe the WTO plays an irreplaceable role in coordinating trade policies of various nations and balancing trade relations.

Both President Vladimir Putin and Prime Minister Dmitry Medvedev are positive about Russia's future. Medvedev said Russia's economy will finally become "highly competitive" by joining the organization.

For the world, Russia's accession is seen as a big advance in world trade liberalization since China joined the WTO a decade ago. The country's status as a major economy will inject new vitality into the world body, which has been widely recognized as the most mature and effective multilateral trade body so far.

Being one of the BRICS countries, Russia's accession will also change the power balance within the WTO to a certain extent by helping coordinate stands of BRICS in the Doha Round negotiations and safeguard the interests of emerging economies.

Russia and other WTO members, now under the same rules, will enjoy numerous opportunities to expand their trade, investment and cooperation. The accession is also expected to facilitate the process of resolving Russia's possible trade disputes with other member nations.

Therefore, Russia's WTO entry will become a great boon to the country itself and the world at large.

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