Russia's accession to the World Trade Organization will be favorable to domestic agriculture

24.02.2012, Anton Safonov, analyst of Investment cafe
Russia's accession to the World Trade Organization will be favorable to domestic agriculture, the head of the Ministry of Agriculture of the Russian Federation Elena Skrynnik considers. The WTO becomes an additional impulse for arrival to branch of new strategic investors and building of volumes of export of domestic agricultural products.
The agriculture and the food industry is one of the most problem sectors which risks to suffer from the accession of the country to the WTO. Duty is sharply reduced by meat products that can negatively affect such companies, as Cherkizovo or OMPK. But nevertheless they possess rather high levels of profitability and have own production base therefore the effect from simplification of procedure of an import of meat will be minimized. As to cereal cultures, the Russian production completely satisfies internal needs, and the part of production goes on export therefore here the effect also will be minimum. Problems can wait a segment of production of vegetables and fruit where the Russian production has low competitiveness in comparison with the foreign. However within the WTO the special agreement on agriculture which allows to enter additional duties if the price of import production is much lower than the price domestic is provided. This agreement also doesn't forbid a measure of the state support of branch. Thus those enterprises which can work in new conditions, become a basis for sector growth, and can get considerable advantages in the market.

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