Center for Economic and Financial Research Club 2015 Russia in the WTO: Myths and Reality . July 2001 CLUB 2015 and CEFIR ? RUSSIA IN THE WTO: MYTHS AND REALITY ? 2 Contents Executive summary ................................................................................................................................ 3 1. Russia ’s WTO accession: A broader perspective .............................................................................. 4 Defining the agenda ................................................................................................................... 4 International trade: Some general arguments ............................................................................. 4 2. Common myths about Russia ’s WTO membership ........................................................................... 6 Myth 1. "We ’ llbe flooded with imports, our industry will fold, we ’ ll allbeout of work" ....... 6 Myth 2. "Russian agriculture will die out. Food will e scarce" ....................................... 8 Myth 3. "The financial sector will wither, and allour money will move abroad" ................... 10 Myth 4. "Lower tariffs will cause imports to surge, and discourage foreign investments" ..... 12 Myth 5. "The WTO will protect us from arbitrary government action" .................................. 13 Myth 6. "The WTO will break down into regional blocs, with no clear place for Russia" ..... 14 Myth 7. "With or without WTO membership, Russia ’s climate prevents investment" ........... 14 Myth 8. "Russia ’s problems stem from its mentality, and accession cannot change that" ...... 16 3. Mobility: The key to ess ............................................................................................................ 19 Labor mobility .......................................................................................................................... 20 Geographic mobility ...................................................
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