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Duma 'yes' to Russia in WTO

July 10, 2012

The Russian parliament has ratified the country's entry into the World Trade Organization (WTO) after 18 years of accession negotiations. But opposition parties fear that Russia cannot compete in a global market.

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protester outside the Duma
Image: REUTERS

Carried only by MPs of the ruling United Russia party, Russia's lower house of parliament, the Duma, on Tuesday ratified accession to the WTO by 238 votes to 208. It will come into law 30 days after being signed by President Vladimir Putin, ending an 18-year period of international negotiations.

Under the deal reached last December with members of the WTO, Moscow will be required to cut import tariffs and open up key sectors of its economy to foreign investment.

Russian parliament has ratified accession to the WTO # wiruss17b # 10.07.2012 18 Uhr # Journal # englisch

Russia's $1.9 trillion economy - the world's ninth largest - will become the WTO's 156th member.

Opposition fears for economy

The move is controversial in Russia, where many fear that Russian companies may not be able to compete once its markets are open to all.

Members of the opposition staged a small protest outside the Duma on Tuesday. "We will be dragged along in the last wagon of a convoy that will be ruled over by multinational companies," said Vladimir Zhirinovksy, leader of the nationalist Liberal Democratic Party.

His comments reflect widespread public fears that Russian industry cannot compete on open world markets.

Even within the ruling party, reservations remain. United Russia's Alexei Pushkov, the parliament's foreign affairs committee chief, tweeted after the vote that "joining the WTO is like jumping into an ice hole," referring to the popular Russian winter pastime of swimming in frozen waters.

Putin, who was re-elected as president in March, had warmed to the idea of WTO membership after the Russian economy was hit hard by the global recession of 2008-09.

Economy Minister Andrei Belousov insisted on Tuesday that the risks outweighed the benefits - that consumers would enjoy greater choice, quality and prices for goods.

German hopes

As one of Russia's most important trade partners Germany hopes Russia's WTO membership will not only reduce import tariffs for German goods, but that it will also encourage Russian industry to modernize.

The German Economy Ministry estimates that German companies doing business with Russia could make an extra one billion euros ($1.22 billion) per year.

ng/sej (Reuters, AFP, dpa)