15 February 2019
ITI expert Daria Antonova on state support for agroindustry in the context of Russia's membership in the WTO

Daria Antonova, expert of the International Trade and Integration Research Center (ITI), has published an article in the Selskoye Khozyaystvo (Agriculture) electronic journal.

The title of the article is State Support for Agroindustry in the Context of the Membership of the Russian Federation in the World Trade Organization. The article was written in collaboration with Daniil Kozlov, Consultant, Department for Foreign Economic Activity, Analytical Center for the Government of the Russian Federation.

At the moment, the volumes of state support for agroindustry in Russia are fully compliant with the requirements of the World Trade Organization (WTO). However, in the nearest few years the planned volumes of support are expected to exceed the limits set by the WTO.

Having conducted a legal and economic analysis of the way the Russian Federation fulfils its obligation to reduce volumes of state support for the agro-industrial complex, the researchers conclude that in the current situation, subsidies is what will be of particular interest to Russia. Subsidies are classified as the so-called green box measures because the obligation to reduce state support doesn't apply to them as they have no significant effect on trade.

The benefits of the WTO membership as far as the agroindustry is concerned will largely depend on how well Russia is able to implement the set of support measures allowed under the Agreement on Agriculture. However, given the lack of experience with taking isolated measures of state support for agroindustry, the Russian Federation in the nearest few years will have to study the procedure for implementing the mechanism of the green box and start to introduce it actively.

See full text of the article here.

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