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Accession to the WTO is accelerated robbery of Russia! Statement by G.A. Zyuganov, the Chairman of the CPRF Central Committee

After 18 years of negotiations, the West has agreed to finally give the green light on Russia's accession into the World Trade Organization (WTO). The timing is chancy by all means. This will provide the West with a saving market, cheap labor and access to huge natural resources of our country in a worsening economic crisis.

Press Service of the CPRF

19 Июня 2012, 20:07 (обновление: 20/06/2012, 10:13)

We are assured that through the membership in the WTO, the country's economy becomes more competitive and the welfare of the people will improve. Similarly, in the 90s by the talk about human values ​​and the promise of a better life the destruction of the Soviet Union and the country's transition to the rails of wild capitalism occurred.

 Meanwhile, according to the World Bank the benefit of Russia's accession to the WTO is more than a modest one and will make 0.3% increase to the GDP, and in the long run - 1.1%, excluding losses from the opening of the customs border.

Even the Minister of Finance A. Siluanov has acknowledged that due to the WTO accession the Russia's the budget in 2013 will miss 310 billion rubles. The accumulated losses by 2020 will amount to at least 26 trillion rubles. Nearly three annual budgets of Russia!

Our nation enters the WTO being totally unprepared for the step and on unfavorable terms. We are assured that there are opportunities for local goods and services to access in world markets. However, nobody names which ones. As the status of the main sectors of the economy does not allow them to compete with foreign corporations, and the industry odds virtually do not release products in demand in the global market.  

By entering into this organization, Russia is largely abandons the latest tools of strategic industries protection, of the currency regulation and control. The government quits supporting domestic producers at a time when the struggle keeps increasing for markets, financial flows and access to natural resources.  

We are told about unprecedented concessions to Russia through the WTO accession. But Russian "negotiators" have managed to agree even with the alignment of internal and external energy prices and to the refusal of the aerospace industry support - the basis of high-tech industries.  

As a result of the accession to the WTO, the average rate of import duties on goods will be reduced to 7.8% (from 10% in 2011). In particular for agricultural products - from 13.2% to 10.8%, and industrial products - from 9.5% to 7.3%. This will lead to a deterioration of the budget filling, the revenue part of which now is formed up to 37% by customs duty. Inevitably worsens the problem of pensions and social benefits payments, redoubles poverty and unemployment. 

 Russia should every five years reduce by 5-10% the already low level of the agriculture state support. Unlike the U.S., where farmers receive a subsidy of 750 dollars per hectare, Russian farmers - not more than $ 35. While the West defends its food market by high duties, Russia reduces them. For example, duties on sugar imports into the EU - 215%, in Russia - 30%, chilled cattle meat - 174%, and we have - 15%, wheat - 173%, we have - 5%. That is, eco-friendly Russian products will be superseded from the shelves by genetically modified counterparts. And if our country already now buys about 50% of food products abroad, it may soon be completely deprived of food security.  

Our industry will have to engage in an unequal struggle against the global corporations that have huge resources and enjoy state support. For example, Russia's membership in WTO is fraught with the loss of its aircraft industry. For the fleet of Russian airlines is in more than 80% staffed by foreign aircraft. We would be only honored to be the screwdriver assembly place, as was the case with the "Super Jet", as well as supplier of raw materials for foreign aerospace holdings. No better fate awaits the domestic auto industry, shipbuilding, and other high-tech manufacturing industries. Light industry will suffer as well.

We argue that Russia needs the WTO to address the loss of export revenues of $ 2.5 billion annually. Meanwhile, only Russian tycoons of ferrous and nonferrous metals are at a disadvantage against discrimination of our exports, the ones, which are lobbying for the accession to the WTO. But they have learned to withstand international competition. The majority of Russian companies, not to mention the small business enterprises, are uncompetitive, even in the domestic market. Without strong state support they fail to survive. That is, the WTO is a threat to small and medium businesses.  

The WTO calls for equal access of private capital to provide any services and open competition. This means that thin Russian financial system and banking sector will move completely under the control of international banks and global speculative capital. 

Russia has no economic incentives for entry into the WTO. The main export articles - raw materials, fuel and energy goods, and weapons - are not subject to regulation by the WTO. Therefore, the only result of the country’ joining the WTO is the final assignment of its status as the raw materials appendage of the West and the market for global corporations.  

The WTO strongly encourages Russia, already the victim of the criminal privatization, to the further sale of state property. On June 7 the government approved an accelerated plan for privatization of major energy companies, mining industry, infrastructure business and state banks. The state power is planning  to quit completely the companies "Rosneft", "RusHydro", "INTER RAO UES", "Aeroflot", Rosagriculturebank, the diamond company Alrosa. There should also be partially privatized Russian Railways, "SCF", Sberbank, VTB, United Grain Company, Rosagroleasing. By 2016 the state share is expected to be reduced in the "tank" Uralvagonzavod, in the United Shipbuilding and Aircraft Corporations. Deputy Prime Minister Shuvalov says that during the privatization the Russian authorities will not allow discrimination of foreigners. In other words, the government will not interfere with the transfer of our strategic assets under foreign control.  

The WTO only formally offers the states equal conditions of development. In fact, trade liberalization works for the benefit of developed economies, above all - the United States and Western Europe. The WTO provides the rule of their monopolies and subordinates the national economies development to their interests.  

The WTO is a tool in the hands of transnational corporations and banks, which, by creating a supranational system of law, reinforce their dominant positions. Their interests are put above the interests of this or that people. The WTO violates the principle of national sovereignty.

We are imposed by the idea that to get out of the global crisis, you must enter a single "global governance", "supranational control", create a "world court supervision". The activity of the world management demonstrates the transition to the final stage of the "global governance" strategy through the development of private power system of transnational elites. 

International organizations are increasingly turning into supranational authorities, whose activities are not consistent with the principles and norms of international law. At the same time, government functions and activities are sequentially transferred into the hands of private entities by means of "outsourcing". In the hands of U.S. corporations there are already military affairs, prisons, intelligence, information control. But if there "their" private capital dominates, in Russia the privatization of government functions creates the conditions for their transfer into the hands of foreign capital.  

Thus, a system of total worldwide financial, legal, political, military and electronic control of private corporations is being created, which will rely on its own punitive apparatus (such as the Hague Tribunal). There will be parallel structures of power, subordinate to external centers based on the principle of supremacy of international law over national law. The shell remains national-state one, and the real power becomes transnational.

  Among the constructing mechanisms for such a "global law-governed state" is the WTO, which in name only remains a trade one, but in reality has long usurped dictatorial powers in the management of its member countries socio-economic policies. Thus, under the guise of the organization that regulates trade, there operates a powerful mechanism for dismantling the state as such, clearing the way for approval of the global corporatocracy. Accession to the WTO will mean for Russia becoming a territory controlled externally.  

Accelerated involvement of Russia in the WTO once again exposes the class nature of the Russian government, which has long grown together with domestic and foreign oligarchic structures. For the sake of the interests of the oligarchs and top officials ungodly alliance the entire Russian industry and agriculture is put in jeopardy. Once again profits proved to be more important than national interests.  

The CPRF calls upon to prevent the ratification of the treaty on Russia's accession to the WTO. The content of Russia's WTO commitments is almost unknown to the people. Meanwhile, the WTO accession will create a real threat to national sovereignty and national security. The authorities are obliged to change their mind and not to exacerbate the already critical situation in Russia.

G.A. Zyuganov, Chairman of the CPRF Central Committee.

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