Effects of Russia's WTO accession on agricultural trade and production

Abstract

The paper explores the benefits and challenges facing agriculture as the most sensitive sector of the Russian economy after a two years long membership in the WTO. The key parts of the paper investigate current effects that the new trade rules have brought to Russian agriculture, and subsequently to its major trading partners. It has been found that both groups of effects are very different, and in some segments totally opposite to forecasts and expectations. The sectors that have had the best chance to benefit from trade liberalization show a significant drop in exports, while the weakest ones record a growth in production. The research seeks to explain how the expected negative effects have been avoided, which would provide useful lessons for the future WTO members. The unexpected results, as research shows, come from the measures taken by Russia prior to admission to the WTO, then the advantages it agreed on during the negotiations and finally practical moves during the implementation of the new rules.