Russia Assessing the Benefits of WTO Membership
MOSCOW, February 24 (IPS) - Despite consistent criticisms over its operations down the years, Russia still finds it difficult to leave the World Trade Organization (WTO), and instead assessing the opportunities and broad benefits of membership. WTO is not just an organization, but a multilateral bridge for strategic trade engagement and securing results-oriented partnerships. Certainly, unlocking and accelerating trade initiatives should be the key focus in the changing world.
Russian Deputy Prime Minister Alexey Overchuk underscored the importance of the work of the WTO, which regulates global trade, further suggested optimizing its operations. Some experts believe the WTO has effectively been paralyzed due to conditions created by the current geopolitical shifts from United States power dominance and its tariffs policy, to the emerging multipolar architecture.
In his view, this reason is driving the current changes as well as “the desire of specific countries, business groups, and companies to establish control, including over deposits of critical minerals, and new transport and logistics routes that ensure the delivery of resources and goods necessary for the functioning of economies.”
“Because whoever succeeds in doing this will secure a leadership position in the world with a new socio-economic order, and, consequently, will create better conditions for the emergence of new enterprises, new jobs, new sources of income for individuals and legal entities, new sources of budget revenue, and, ultimately, of course, a better standard of living for their own population,” Overchuk said, at the forum “Architecture of the Future: Russian Business in Key Multilateral Platforms.”
In his opinion, sanctions, tariff and non-tariff restrictions are playing an increasingly important role in international economic relations, and Western countries are using instruments of unfair competition. Experts believe that Russia has not received substantial economic benefits from its WTO membership.
Now, the world is moving away from globalization altogether, with many countries introducing ever more restrictive measures based solely on their own interests, disregarding international rules.
Experts agree that the WTO crisis is part of a broader process of transformation of the global economy. In a mid-February Rossiyskaya Gazeta, Pavel Seleznev, faculty dean at the Russian Financial University, pointed to the “erosion of international law” and the transition to a model based on “might makes right” and bilateral agreements. According to him, the world is shifting away from multilateral mechanisms toward agreements concluded outside the framework of international institutions.
Russian Chamber of Commerce and Industry’s Customs Policy Council Chairman, Georgy Petrov, however described what is happening as a “phase change”: classical globalization is giving way to regionalization, where trade flows and rules are concentrated within macro-regions and political decisions become the basis of economic policy, rather than the other way around.
In practice, this manifests as a sharp increase in restrictive measures. Dmitry Krasnov, managing director of the Rexoft Consulting Competence Center in Agriculture, also noted that participants in international trade are increasingly introducing unilateral steps that contradict established multilateral rules.
Meanwhile, the assessment of Russia’s WTO membership remains mixed. According to Krasnov, the organization provided “leverage for predictability”: multilateral commitments on tariff and non-tariff policies created a clear framework for the state and businesses, reduced arbitrary barriers, and provided opportunities for arbitration.
Petrov recalled that “the main tariff positions were fixed,” and entrepreneurs understood the limits of rate changes. This made customs and tariff policy more stable.
The reduction in tariffs provided for in the accession terms also had a dual effect. In Russia, some industries faced increased competition due to reduced protectionism upon accession to the WTO. According to Petrov, many manufacturers felt the need to produce higher-quality, more competitive products, which was a positive development.
Pavel Seleznev, faculty dean at the Russian Financial University, on the other hand, believes that Russia has not gained any significant economic benefits from its membership. However, even in the current situation, maintaining its membership status allows Russia to continue engaging in dialogue and expressing its views, even with unfriendly countries.
Russia remains the member of the WTO and views its norms as fair and useful but the issue of keeping membership in conditions of sanctions pressure is not a simple one, Foreign Minister Sergey Lavrov said, on February 11, in the State Duma, the lower house of the Russian parliament.
Moscow believes it is necessary to revive the WTO as the sole recognized regulator of multilateral trade. “The issue is difficult and is under control with us and with the economic bloc of the government,” Lavrov said. “The WTO is experiencing crisis at present, just as the Bretton-Woods System on the whole,” he noted.
WTO principles and norms “are clearly established in agreements governing our trade relations with the overwhelming majority of countries of the world, including the global majority countries accounting for more than 70% of the Russian trade turnover,” the top Russian diplomat said. “One more circumstance that cannot be ignored is that the entire legal system of the Eurasian Economic Union rests on these WTO norms,” he noted.
The G20 Summit held on November 22-23 in Johannesburg, at the initiative of South African President, Cyril Ramaphosa, the joint declaration which was adopted, called for major reforms and stabilization of the global economy in 2026. “We recognize that meaningful, necessary and comprehensive reform of the WTO is essential to improve its functions so that it is better suited to advance all Members’ objectives,” the declaration read.
At the same time, G20 leaders emphasized its importance as an instrument for resolving trade disputes between countries. “We will strive to ensure that the benefits of trade reach all segments of society and that all people have the opportunity to benefit from trade,” the document reads.
In summary, the collective declaration advocated also for the swift implementation of the agreements reached within G20 to strengthen the role of countries from the Global South and East in the International Monetary Fund (IMF) and the World Bank (WB), taking into account their real weight in global economy. It is also important to revive the WTO as the sole recognized regulator of multilateral trade.
Russia joined the WTO in April 2011 after almost 18 years of persistent struggle and several negotiations, and adopting consistent efforts to meet the stringent membership requirements. It is the only international body now supervising world trade.
WTO has 153 members, and negotiations on the admission of a new member are held within a working group that unites countries that have unsettled trade problems with the candidate. It was established on January 1, 1995, as the successor to the General Agreement on Tariffs and Trade (GATT) that had been operating since 1947.
Kester Kenn Klomegah focuses on current geopolitical changes, foreign relations and economic development-related questions in Africa with external countries. Most of his well-resourced articles are reprinted in several reputable foreign media.
IPS UN Bureau
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