$50 is not a record. This is the normal price of a barrel. That is, the “barrel”. For Russia, this price is acceptable — that this amount of calculated budget. Then, perhaps, you will not have to bother the Reserve Fund or national welfare Fund.
Over the past month, oil has appreciated in value by almost a quarter. In early August, it cost about $40 per barrel. Now hovering around $48-52 per barrel. The cost of the “barrel” has exceeded the coveted “fifty dollars”. It is the merit of market players that can have any prices in any situation. As well as domestic producers, who not only stood shoulder to shoulder with foreign colleagues, but also can become their competitors, ready to give to the world market and all that it reaps.
The modernization of the national economy in accordance with the requirements of the present stage of development of trade-economic relations is necessary. Many Russian manufacturers to world market will have special attention paid to the quality of its products, in order to provide it with high competitiveness.
Participation in the WTO has allowed Russia to integrate into the international trading system, which accounts for more than 90% of the total turnover, but time has shown that the organization is not a universal remedy to stimulate exports and raise the level of competition in the domestic market for the growth of its effectiveness. A much stronger driver of growth in this case is the weakening of the ruble, and we see that the exporters really feel good, and Russia’s participation in the WTO makes it easier to conduct business, as there are rules of the game, and significantly less time is spent on negotiation process.
The advantages of Russia’s accession to the WTO:
Improving the image of the country as an equal player in global trade.
– – Reducing barriers to international trade market.
– Free access to established international schemes for the resolution of disputes in the field of trade (part of WTO Commission for the settlement of disputes).
The broader the possibilities of participation in the economies of the member countries of the WTO for Russian investors.
The reduction of import duties on certain goods (drugs, food, clothing, IT products, etc.). This benefits consumers, but can lose manufacturers.
By reducing export duties are clearly visible advantages for businesses operating in the commodity segment.
Cons of Russia’s accession to the WTO:
– The threat of rising unemployment if the Russian enterprises are not competitive with foreign producers. This is especially true of towns with a single enterprise.
– The reduction of import duties can cause a number of products will become unprofitable to produce in Russia. The greatest risk exists for the agricultural sector (both crop and livestock).
– Reduction of import duties could adversely affect the domestic automotive industry – the influx of used imported vehicles is a direct threat to Russian automakers.
– Reduction of export duties. From this process, a loss may be the country’s budget.
The imposition of sanctions and Russia’s participation in WTO is essentially unrelated processes. The sanctions policy is always detrimental to trade and economic cooperation between the two countries, and we clearly see this in the example of relations between Moscow and Brussels. But WTO membership does not affect the possibility of lifting the sanctions.