The World Trade Organization granted Russia the membership it has long desired Wednesday, providing greater opportunities to foreign businesses. But Russia's W.T.O. membership may serve to disadvantage U.S. companies, because Congress refuses to grant Russia permanent normal trade relation status. In order to benefit from lower trade barriers, a country must apply the same trade rules to all W.T.O. member countries.
Russia negotiated for W.T.O. membership for almost two decades, longer than any other major entrant to the trade organization. It will decrease its import tariffs from 15% to 7%. While Russia has not indicated that it plans to introduce discriminatory tariffs on the United States, it legally could.
U.S. legislators have dragged their feet on the issue of approving permanent normal trade relations because of Russia's history of corruption, conflicting foreign policy and its human rights record. Only 0.5% of American exports go to Russia, but its dependence on mining and energy makes it a top export destination for companies like Caterpillar.
Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.
Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Thought leadership on regulatory changes, economic trends, corporate success stories, and tactical solutions for treasurers, CFOs, risk managers, controllers, and other finance professionals
- Informative weekly newsletter featuring news, analysis, real-world case studies, and other critical content
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the employee benefits and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.