At long last, Russia is preparing to enter the World Trade Organization (WTO) after WTO member Georgia put down its opposing stance, propped up by the 2008 armed conflict between the two countries, towards Russia entering the organization. Russia has attempted to become a WTO member for the past 19 years or so. With Georgia stepping down from opposing Russia, it is the last member to approve of Russia’s bid.
Georgia settled down after Switzerland mediated a deal concerning border disputes with South Ossetia and Abkhazia between Georgia and Russia peacefully. Russia’s WTO membership is expected to be approved this December.
Upon joining the organization, Russia will be required to follow international trade rules. According to the World Bank, Russia’s economy could get boosted by 3 percent.
Russia’s move into the WTO will undoubtedly comfort foreign investors and entities into investing in Russia. Moreover, on the more basic level, people in Russia will have better access to imported goods at lower prices due to the removal of tough trade barriers and the introduction of fiercer competition in the market.
However there may be negative side effects such as the failure of domestic companies including auto makers as the increased competition could disable the domestic auto makers if they cannot keep up with the foreign auto makers.