Each of us regularly hears in the news about the WTO. Information about this organization can be found in textbooks on geography and economics. Her work is very important for European countries, but our compatriots know little about it. Recently, such a topic as “Russia and the WTO” has been very actively discussed. And in the wake of increased interest, let's try to sort out this complex economic and political issue.
Structure and organization
So the WTO - what is it? The abbreviation stands for "World Trade Organization." It was founded in 1995 to expand the freedom of trade relations throughout the world, as well as between states that joined the WTO. The basis was the General Agreement on Trade and Tariffs, created in 1947.
The headquarters of the organization is located in Switzerland (Geneva). At present, Pascal Lamy is the general director of the structure, and as of mid-2013, it included 159 countries. The Director General is subordinate to the General Council or the secretariat, which in turn manages several commissions.
The main official body of the WTO is the Ministerial Conference. She meets at least once in a two-year period. In the history of the structure, six such conferences were organized, and almost each of them was accompanied by a series of protests from the enemies of globalization. We think we answered the question: “WTO, what is this?” Now let's move on to considering the goals of this organization.
Three main goals
1. Unhindered facilitation of international trade and the removal of barriers to this. The organization of the WTO does not allow negative consequences and various abuses. For individual entrepreneurs, enterprises and departmental organizations, international trade standards do not change without warning. Their meaning is clear and understandable, and the application is consistent.
2. Since many countries participate in the signing of the texts of the agreements, debates constantly arise between them. The WTO acts as a mediator in negotiations, introducing a number of regulatory restrictions and creating reliability, which helps to avoid conflicts.
3. The third important aspect of the organization’s work is dispute resolution. After all, the parties involved in the negotiations, as a rule, have different goals. Contracts and agreements concluded through WTO mediation often require a subsequent interpretation. All disputed issues are best resolved in the manner prescribed by the organization, based on mutually agreed legal aspects that provide the parties with equal opportunities and rights. That is why all agreements signed within the organization include a clause on the conditions for the settlement of disputes.
Five principles
Currently, there are five principles that the global trading system must comply with.
1. Non-discrimination
No state has the right to infringe on another by imposing restrictions on the import and export of goods. Ideally, national and foreign products should be sold on the domestic market in the same conditions.
2. Decrease in protectionist (trade) barriers
Trade barriers are factors that prevent the appearance of foreign goods in the domestic market of a state. First of all, these include import quotas and customs duties. Foreign exchange policies and administrative barriers also influence international trade .
3. Predictability and stability of trading conditions
Governments, investors and foreign companies must have confidence in the invariance of trading conditions (tariff and non-tariff barriers) in a sudden and arbitrary manner.
4. Stimulation of the competitive component
In order for competition between firms in different countries to be equal, it is necessary to suppress dishonest methods of struggle - export subsidies (state support of exporting firms) and the use of dumping (specially lowered) prices to enter new export markets.
5. Benefits for underdeveloped countries
As a rule, WTO countries have a strong economy, but there are also underdeveloped states to which the organization provides special privileges. This principle conflicts with others, but it is needed to draw countries with a low level of development into international trade.
Functions
- monitoring compliance with the basic agreements of the WTO;
- settlement of disputes on foreign trade issues;
- assistance to both developing and underdeveloped countries;
- cooperation with various international organizations ;
- creation of favorable conditions for negotiations between WTO members;
- control of countries' policies in the field of international trade.
Joining procedure
We practically opened the question “WTO - what is it?”. It remains to consider its most important part - the accession procedure, worked out over the long years of the organization's existence. Judging by the experience of the applicant countries, the process takes about 5-7 years.
At the first stage, special working groups conduct a multilateral analysis of the trade and political regime and the economic mechanism of the acceding state for their compliance with WTO rules and standards. Then negotiations begin on the terms of entry into the organization of the candidate country. Moreover, interested states that are members of working groups can also participate in them.
The main topic of the negotiations is the “commercially significant” concessions that the WTO countries will receive on access to its markets after the formal entry of the candidate state into the organization. An equally important issue for discussion is the timing of assuming obligations arising from membership.
In turn, the acceding state will receive the rights that other WTO members have. This will stop its discrimination in foreign markets. If any member of the organization commits unlawful actions, any country may file a complaint with the LFS (Dispute Resolution Body). At the national level, every member of the WTO must comply with its decisions.
The final stage consists in the ratification by the legislative body of the candidate state of all documents agreed by the Working Group and approved by the General Council. After this procedure, the candidate country receives the appropriate status.
Russia and the WTO
Since the economy of our country (since the collapse of the USSR) was increasingly integrated into international trade, a need arose to enter the world stage. For the first time, accession to the WTO was discussed by the Russian leadership back in 1995, then negotiations were held. Joining a country with this organization will provide many benefits. And given the pace of development of globalization, obtaining them becomes a strategic priority. Bonuses that Russia will receive after joining the WTO:
- the best conditions for our products to access the world market;
- expanding opportunities for Russian investors in terms of entering the markets of other countries participating in the organization;
- improving the image of the state in the international political arena;
- the possibility of using the WTO legislative framework to resolve trade disputes;
- participation in the development of rules and norms of international trade, taking into account their own interests.
In 2012, the 16-year negotiation process on Russia's accession to the WTO was completed. An international treaty was sent to the Constitutional Court to verify its compliance with Russian law. In July 2012, the court recognized the WTO conditions specified in the agreement as legal, as well as the entire agreement as a whole. After 11 days, President Putin V.V. signed the corresponding decree on Russia's entry into this organization.
Criticism
We hope that we spoke in sufficient detail about this organization, and you will no longer have the question: “WTO - what is it?” In conclusion, a few words about criticism.
Many people disagree with WTO principles on free trade. They believe that these principles do not contribute to the creation of a more prosperous life for most citizens, but only lead to the enrichment of already wealthy countries (and individuals). WTO treaties are also accused of an unfair priority to wealthy nations and multinational corporations.
Critics believe that small WTO member countries do not have influence in the organization, while developed ones focus solely on their own commercial interests. Also, according to experts, environmental protection and healthcare are always relegated to the background for the sake of additional benefits for business.