Now no one is missing. Even the last prodigal son became part of the large family of the World Trade Organization. The application was filed in 1993 and it took nearly 20 years for Russia to get the green light from the Washington-based organization. And they weren't immediate steps. The country has had to ratify reforms that structurally modify its economy, primarily by planning a reduction in customs tariffs and the liberalization of foreign products by 2015. The transition period to implement the measures imposed by the WTO ranges from two to three years, but can be extended up to 7 for sectors that need more protection such as agriculture and the automotive and agricultural machinery industries. Moscow is the ninth economy in the world with a GDP of 1.900 billion dollars and was the most important country to have remained outside the WTO. Now only 28 remain excluded, including Iran, Iraq, Libya, Bosnia and Kurdistan and Kazakhstan.
For President Vladimir Putin, joining the WTO has always been a priority. In recent years, Georgia has undertaken to slow down Russian entry, in conflict with the Eurasian giant over the two separatist provinces, Abkhazia and South Ossetia, finally recognized by the Kremlin in November 2011.
For a country that had the myth of autarky, the change will be remarkable. Moscow must lower its tariffs from 9,5% to 6%, will be obliged to respect the principle of reciprocity and the clause of the most favored nation in commercial relations. Furthermore, the influence of the state, now looming over many sectors, will have to be severely limited by 2015. According to the World Bank the positives of Russia's accession to the WTO will be first and foremost increased productivity and competition among Russian enterprises. The Institute of Washington estimates a 3,3% increase in GDP over the next 3 years and 11% over the next 10. Also household incomes will increase by an average of 7,2% each year and the decrease in prices will benefit consumers. Sectors highly protected by the state, as especially agricultural machinery manufacturers, will suffer severely from foreign competition and by 2015 they will see state influence severely limited. But, according to the World Bank, Russia has lopportunity to modernize industries such as metallurgical and chemical or telecommunications in a more business-friendly climate to aim to export something other than just gas, oil or weapons.
However, a bitter note remains. Joining the World Trade Organization does not imply adherence to Western values such as democracy and freedom. Just in these days the new laws that limit the freedom of expression are showing the world the backwardness of Moscow in terms of human rights (see the case of Pussy Riot). Until progress is made in that direction as well, the opening up of the economy will only benefit consumers and not citizens.
