Russia’s Accession to the WTO Benefits German Exports

Moscow/Berlin - Russia's accession to the World Trade Organization (WTO) as its 154th member marks a historic moment. This Friday, during the Ministerial Conference in Geneva, the 153 Member States approved Russia's membership. The Russian parliament now has 220 days to ratify the accord in order to bring it into force. Once Russia's ratification of WTO accession is finally complete, Russia will embark upon a new era in trade and open a new chapter in German-Russian trade relations.

Average import tariffs on industrial goods would sink from 9.4% to 6.4%. Germany, the most important supplier of machinery and equipment, cars, and medical devices, would benefit more than other trading partners. For example, Russia's accession would see duties on new and up to seven-year-old cars fall to 30% and 35%, respectively, and in the following seven years, these duties would gradually be lowered to 15%. In addition, the dispute regarding flight routes over Siberia would be resolved. Moreover, Russia would cut its agricultural subsidies by half and reduce average tariff rates from 15.6% to 11.3%. The export of grains would no longer be prohibited and the insurance markets would also be liberalized, even though this should be achieved gradually.

Such tariff reductions improve the competitiveness of German products in the Russian market as compared to domestic goods. What's more, the WTO provisions offer trade-related security to limit protectionist measures. A detailed assessment by Germany Trade & Invest on the impact of Russia’s accession to the WTO on German-Russian trade relations can be found on-line:

• Russia Lowers Import Duties on Vehicles and Electronics (in German only)
• German Agricultural Exports Benefits from Russia’s WTO Accession (in German only).