The next episode of the crisis involving the war in Ukraine may take place within the international trade regime. This is because the government of Vladimir Putin instructed the Kremlin teams to analyze the actions taken against Russia within the WTO (World Trade Organization), thereby deciding the future of the country’s participation in this organization.
Rumors suggest that by June 1, the Russian government should update its strategy in this area with real chances to announce its withdrawal from the institution. This comes in the context of extensive Western sanctions against Moscow, and after a 40-nation coalition led by the United States and the European Union announced the suspension of sanctions. situation Russia’s Favorite Country. With this article, countries have advantages and privileges in the implementation of international trade rules and can protect their global competitiveness.
Russia’s accession to the WTO had been negotiated for almost two decades and only took place at the end of 2011. At the time, it was the only G20 economy outside of the multilateral trading system. To be accepted, Russia has made a number of concessions, including opening its market, changes in rules on subsidies and intellectual property, and obligations in sensitive areas such as oil and gas. Since then, even in the face of difficulties and possible disagreements, Russia’s accession to the system has been seen as a victory for the prevailing international order.
The WTO was created and maintained as a way to guarantee governance and good practice in international trade. Its purpose is to establish relationship standards, harmonize rules, liberalize change and resolve conflicts. Despite this, the final round of negotiations, known as the Doha Round, which began in 2001, is facing unprecedented paralysis.
The lack of consensus involving the interests of the developed and developing world does not allow for progress and decisions. In addition, in an increasingly protectionist, polarized world that lacks agile responses, the unanimous decision-making mechanism and the obligation of countries to comply with all agreements that are part of the system make it difficult to strengthen the institution.
Russia’s choice to leave the WTO will be a fatal blow to a structure that has been dying for years, as well as the symbolic effect that will refer to the Cold War eras.
source: Noticias
