Russia's More-Open Economy Will Lead to WTO Membership

Changes will provide a boost for the U.S. economy as well.

Russia is getting closer to joining the World Trade Organization. During President Dmitry Medvedev’s June visit to Washington, he and U.S. President Barack Obama set a target of Sept. 30 to resolve outstanding disputes over intellectual property rights, food safety, animal and plant health, encryption technology and the behavior of Russia’s state-owned enterprises. That deadline will almost certainly slip. The State Duma, the lower house of Russia’s parliament, won’t take up the necessary legislation on intellectual property rights until the fall. But by early 2011, the last barriers to Russia’s entry into the WTO will be removed.

Russia’s WTO membership will help the U.S. by slashing tariff rates and increasing market access. Goods exports that stand to benefit include autos, aviation, chemicals and chemical production equipment, power generation machinery, security equipment, chicken and pork. Over the longer term, gains in services exports -- particularly banking, investment services and insurance -- will prove even more significant.

Subscribe to Kiplinger’s Personal Finance

Be a smarter, better informed investor.

Save up to 74%

Sign up for Kiplinger’s Free E-Newsletters

Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.

Profit and prosper with the best of expert advice - straight to your e-mail.

Sign up

To continue reading this article
please register for free

This is different from signing in to your print subscription

Why am I seeing this? Find out more here

Associate Editor, The Kiplinger Letter