Russia’s WTO accession will boost growth and job creation not only for Russia, but also for Russia’s trade partners, international business leaders told Modern Russia. In addition to foreign officials and financial analysts, Modern Russia asked a number of business representatives what they expected from seeing Russia in WTO, a move agreed on 16 December in Geneva.
Respondents hailed the business opportunities expected to result from Russia’s WTO membership, thanks to the removal of trade barriers and an improved investment climate. Several CEOs also welcomed the gradual harmonization of business regulations that Russia in WTO will foster, for instance with regard to health standards in the agriculture and food sector, while others emphasized the importance of being able to use the WTO’s settlement mechanism to solve trade disputes.
From a more political perspective, Rusnano CEO Anatoly Chubais explained that WTO accession marks the completion of Russia’s integration into the new world community after 20 years of transition. Alcoa CEO Klaus Kleinfeld on his part called upon the U.S. government to extend Permanent Normal Trade Relations to Russia to allow US companies to seize the opportunities created by Russia in WTO.
Anatoly Chubais, CEO of the Russian Nanotechnology Corporation (Rusnano), former first deputy prime minister of the Russian Federation
"Russia's WTO accession is not merely an accession to an international organization, but a crucial step in a process which is fundamentally changing Russia's place in the world. It will be followed next year by Russia's accession to the OECD and by the conclusion of the new Strategic Partnership Agreement with the EU. At the end of this process, Russia will finally be a full member of the new world community, successfully completing a transition process which started 20 years ago."
Klaus Kleinfeld, chairman and CEO, Alcoa, also Chairman of the U.S.-Russia Business Council (USRBC)
"I applaud the decision to formally invite the Russian Federation to join the World Trade Organization. Upon accession, Russia will become a more integrated part of the global economy by opening its market to foreign companies and adhering to international standards.”
“As the Chairman of the U.S.-Russia Business Council (USRBC), I want to reiterate that our member companies support Russia's WTO accession. However, for U.S. companies to enjoy the full benefits of Russia's accession, the U.S. Congress will have to remove Russia from the Jackson-Vanik amendment and authorize the President to extend Permanent Normal Trade Relations (PNTR) to Russia. The USRBC stands ready to work with the Congress and President Obama in the coming months to ensure that U.S. companies are able to take advantage of the growing Russian market."
Alan Mulally, president and CEO, Ford Motor Company
"The completion of Russia's negotiation to join the WTO will create far more certainty and protection for investors and exporters while generating new opportunities in what is soon expected to be the largest auto market in Europe. With one of the fastest growing economies in Europe, Russia represents a strong market for Ford products as we grow our global business. Russia's membership in the WTO will be good for trade, good for jobs, and good for investment."
Bob Stallman, president, American Farm Bureau Federation
“The American Farm Bureau Federation believes that Russia’s successful accession into the World Trade Organization will lead to increased trade between our two nations. […] Farm Bureau looks forward to our continued work with the Russian government in expanding U.S. agricultural exports to this valuable and important trading partner and we appreciate the responsibility Russia has accepted as a WTO member. Russia’s joining of the WTO is critical for improving the terms of trade and dispute resolution between the United States and Russia.”
Bob Vastine, president, Coalition of Service Industries (CSI)
“After arduous negotiation, Russia has now committed to join the rules-based multilateral trading system embodied the in the WTO and the General Agreement on Trade in Services (GATS). These commitments assure our companies greater access to Russia’s markets for cross-border trade in services, and for U.S. direct investment, both of which generate jobs and economic prosperity in the U.S… With this agreement, Russia becomes more attractive to U.S. services companies because of the much more secure and transparent legal environment. It is a big step forward demonstrating the importance of the WTO.”
Franck Schauff, CEO, Association of European businesses in the Russian Federation (AEB)
“We see Russia’s WTO accession – once it happens, as it still needs to be ratified by the State Duma – as a very big step forward, for two reasons.
Firstly, it will increase the competitive pressure in Russia, leading to more investments and more efficiency. WTO accession will therefore give strong impulses for the modernization of the Russian economy, even though this will of course not happen immediately, but will be the result of a long process.
Secondly, for European investors Russia’s WTO accession is very positive because it means that Russia is decidedly moving towards adopting “mainstream” business rules and practices, providing a safer and more reliable framework for investments. But once again, this is a process which will take several years before its concrete impact can be felt.”
Luigi Scordamaglia, CEO of Inalca (Cremonini Group)
“From all points of view Russia’s accession to the WTO is a fundamental step towards the recognition of Russia’s increasingly central role on the international scene, both politically and economically.
First, thanks to the reduction of tariff and non-tariff barriers, WTO membership will ease exports of high value-added food products to Russia. Second, it will open the global market to Russian companies. Russian companies, in particular with the help of Italian companies, will invest in the modernization of agricultural production, which has an enormous potential due to country’s sheer production capacity. In a world where food supply is increasingly becoming a strategic asset, it is to be expected that Russia will no longer be a net importer, but a producer of agricultural commodities for the rest of the world.”
Jean-Michel Mauboussin, chairman, French-Russian Association for food industries
“The accession of Russia to the WTO is positive news, especially for the harmonization of the health standards which will facilitate trade relations in the food industry.”
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