INTRODUCTION

The World Trade Organization (WTO) represents one of the largest international institutes regulating foreign trade activities in general and its trading sector in particular. The big authority and popularity of the WTO in world economic community are connected, first of all, with practical benefit from participation in activities of this international organization. This benefit is reached because the overwhelming majority of the member-countries of the WTO are provided for themselves and their partners with favorable conditions on creation of trade and other activities on huge areas.

The introduction of Russia into the World Trade Organization means formal removal of barriers on the way of the Russian goods to the world markets with simultaneous counter opening of domestic market for foreign manufacturers. However, the economic breakthrough on the world markets is vital for the Russian economy.

It is supposed, on the one hand, that joining will promote improvement of market mechanisms, free competition of the goods and services in the Russian economy and, as consequence, will create necessary conditions for intensive growth of labor productivity. Thereby there will be an impulse in solving of many problems, like re-structuring of the industry and technological development.

At the same time, for a considerable part of the Russian enterprises and companies which are producing noncompetitive goods, the introduction of the country into the WTO means inevitability of a choice: either modernization of production lines or curbing of production. If the enterprise wants to survive in such conditions, it is obliged to learn how to produce competitive goods. Russian economy needs time, desire, ability to improve, and also, for a certain transition period, state measures of protection of home market and those manufacturers who aren’t prepared for such modernization.

That’s why, I will try to analyze the key benefits and disadvantages of the Russian participation in the WTO. We should find out, what problems Russian enterprises will face, what difficulties they should expect in case of Russia’s accession to the World Trade Organization, because this accession will have great impact not only within the Russian Federation, but also around the world.

WTO & RUSSIA: GOALS, BENEFITS, DISADVANTAGES.

THE MAIN GOALS, PRINCIPLES AND FUNCTIONS

OF THE WTO

I don`t want to review the history or structure of the WTO in this assignment, because we reviewed these aspects during the module and because I want to analyze key benefits and key disadvantages of the Russian accession to this organization. So, at first, I will review the main goals, principles and functions of the WTO as the main international economic organization. From my point of view, it is very important and vital to know these goals, principles and functions, because it is a basis for the understanding of the problem.