James Turley’s comments on Russia’s WTO Accession

After almost 19 years – and after almost as many fits and starts during the long negotiation process – Russia, the world’s 11th largest economy has finally joined the World Trade Organization.   The WTO’s Ministerial Conference taking place in Geneva, Switzerland last weekend made it official. 

For those of us who do business in Russia and who recognize Russia’s long-term business and economic potential, this is welcome, albeit long overdue news.  For those who want to gain access to a huge and growing market and are considering doing business there, Russia’s WTO membership should make the decision an easier one.  It means Russia has now entered into the global rules-based trading system, and has accepted the principle of international review and arbitration in the event of trade disputes, thereby leveling the playing field for everyone.

Perhaps more importantly, it will help drive innovation and diversification of Russia’s economy.  And it can help accelerate the positive steps Russia is taking to embrace global standards of governance and transparency and to implement economic and financial reforms – strengthening the banking system, strengthening the tax system and strengthening the rule of law, for example.   The importance of Russia’s accession to the World Trade Organization cannot be underestimated.  It is key to building a more competitive Russian economy in the 21st century, which is not only good for Russia but good for the global economy.   

James Turley is Chairman and Chief Executive Officer of Ernst & Young.  He also serves as coordinator of the foreign participants in the Foreign Investment Advisory Council (FIAC).  FIAC was established in 1994 as a result of the combined efforts of the Russian government and foreign businesses to improve the investment climate in Russia.