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Opinion
– Despite constant criticism of its operations over the years, Russia still finds it difficult to leave the World Trade Organization (WTO) and instead evaluate the opportunities and broad benefits of membership. The WTO is not just an organization, but a multilateral bridge for strategic trade engagement and results-oriented partnerships. Undoubtedly, unlocking and accelerating business initiatives should be the key focus in a changing world.
Russian Deputy Prime Minister Alexey Overchuk underlined the importance of the work of the WTO, which regulates global trade, and also suggested optimizing its operations. Some experts believe that the WTO has been effectively paralyzed due to the conditions created by the current geopolitical changes from the power dominance of the United States and its tariff policy to the emerging multipolar architecture.
In his opinion, this reason is driving the current changes, as well as “the desire of specific countries, business groups and companies to establish control, including critical mineral deposits, and new transportation and logistics routes that ensure the delivery of resources and goods necessary for the functioning of economies.”
“Because whoever succeeds will secure a leading position in the world with a new socio-economic order and, consequently, create better conditions for the emergence of new companies, new jobs, new sources of income for individuals and legal entities, new sources of budget income and, ultimately, of course, a better standard of living for its own population,” Overchuk said at the forum “Architecture of the future: Russian companies on key multilateral platforms.”
In his opinion, sanctions and tariff and non-tariff restrictions play an increasingly important role in international economic relations and Western countries use instruments of unfair competition. Experts believe that Russia has not received substantial economic benefits from its WTO membership.
Now, the world is completely moving away from globalization and many countries are introducing increasingly restrictive measures based solely on their own interests, without regard for international standards.
Experts agree that the WTO crisis is part of a broader process of transformation of the global economy. In a Rossiyskaya Gazeta in mid-February, Pavel Seleznev, dean of the faculty at the Russian Financial University, noted 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 moving away from multilateral mechanisms towards agreements concluded outside the framework of international institutions.
However, the chairman of the Customs Policy Council of the Russian Chamber of Commerce and Industry, Georgy Petrov, described what is happening as a “phase change”: classic 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, and not the other way around.
In practice, this manifests itself as a sharp increase in restrictive measures. Dmitry Krasnov, General Director of the Agricultural Competence Center at Rexoft Consulting, also noted that participants in international trade are increasingly introducing unilateral measures that contradict established multilateral rules.
Meanwhile, the assessment of Russia’s WTO membership remains mixed. According to Krasnov, the organization provided “influence for predictability”: multilateral commitments on tariff and non-tariff policies created a clear framework for the state and business, reduced arbitrary barriers, and provided opportunities for arbitrage.
Petrov recalled that “the main tariff positions were fixed” and businessmen understood the limits of tariff changes. This made customs and tariff policy more stable.
The reduction in tariffs provided for in the conditions of accession also had a double effect. In Russia, some industries faced increased competition due to reduced protectionism following its accession to the WTO. According to Petrov, many manufacturers felt the need to produce more competitive and higher quality products, which was a positive development.
Pavel Seleznev, dean of the faculty at the Russian Financial University, on the other hand, believes that Russia has not derived any significant economic benefits from its membership. However, even in the current situation, maintaining its membership status allows Russia to continue dialogue and express its opinions, even with hostile countries.
Russia remains a member of the WTO and considers its rules fair and useful, but the issue of maintaining membership under conditions of sanctions pressure is not simple, Foreign Minister Sergey Lavrov said on February 11 in the State Duma, the lower house of the Russian parliament.
Moscow believes that it is necessary to reactivate the WTO as the only recognized regulator of multilateral trade. “The issue is difficult and under control with us and with the government’s economic bloc,” Lavrov said. “The WTO is currently going through a crisis, as is the Bretton-Woods system as a whole,” he said.
The WTO principles and rules “are clearly set out in the agreements that govern our trade relations with the overwhelming majority of the world’s countries, including the global majority countries that account for more than 70% of Russian trade turnover,” the top Russian diplomat said. “Another circumstance that cannot be ignored is that the entire legal system of the Eurasian Economic Union is based on these WTO rules,” he noted.
At the G20 Summit held on 22 and 23 November in Johannesburg, at the initiative of South African President Cyril Ramaphosa, the joint declaration that was adopted called for major reforms and the stabilization of the global economy by 2026. “We recognize that significant, necessary and comprehensive reform of the WTO is essential to improve its functions so that it is better prepared to promote the objectives of all Members,” the declaration reads.
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 statement also advocated for the rapid implementation of the agreements reached at the G20 to strengthen the role of the countries of the Global South and East in the International Monetary Fund (IMF) and the World Bank (WB), taking into account their real weight in the global economy. It is also important to reactivate the WTO as the only recognized regulator of multilateral trade.
Russia joined the WTO in April 2011 after nearly 18 years of persistent struggle and several negotiations, and adopting consistent efforts to meet the strict membership requirements. It is the only international body that currently oversees global trade.
The WTO has 153 members and negotiations on the admission of a new member are carried out within a working group that brings together countries that have outstanding 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 in force since 1947.
Kester Kenn Klomegah focuses on current geopolitical changes, foreign relations and issues related to economic development in Africa with external countries. Most of his well-resourced articles are reprinted in several reputable foreign media.
IPS UN Office
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