Problems of the Russian agriculture
Difficulties in the development of domestic agriculture have been and remain a consequence of underestimating the state's role in the formation of a national agricultural policy, the lack of the necessary logistical and financial support for the industry. This led to a skewed when domestic food in relation to the subsidized import was uncompetitive. It has become more expensive imported and widely displaced from the Russian market. Production of high-quality and productive agricultural machinery is also not well developed in Russia. Farmers choose the best and buy the imported tractors and seeders. Russia has also developed the production of high quality and productive agricultural machinery; farmers choose the best and buy the imported tractors and seeders. Is it possible to change the situation? It is already changed.
Prospects for the development of agriculture in Russia
A powerful impetus for renewing the country's economy, its improvement and promotion of economic development have become the priority national projects, including "Development of agriculture (agriculture)", which in a short time had to solve the most pressing problems of the village. In recognition of this country's agro-industrial complex national priority should be seen as a turning point for farmers to labor, agriculture, as a confirmation that it is one of the main sectors of the economy, ensuring the stability of the lives of citizens and the country's food security.
It is known that the priority of national project "Development of agriculture" included three areas: "The accelerated development of animal husbandry", "Promotion of small enterprises in agriculture" and "Providing affordable housing for young professionals (or their families) in rural areas." It may be noted appreciable progress in its implementation: increased production of meat and milk, have developed small-scale forms of economic management, an increasing number of agricultural consumer cooperatives, implemented measures to provide affordable housing for young professionals in rural areas.
Agriculture developed countries is subsidized by the state. Over 70% of food in Russia comes from EU, USA and Canada that is one of those states where the export is supported in all ways and lobbies. The Western suppliers are those that we have not finalized quality standards for food production and relevant policies have not yet done. How to import meat with a high degree of frost, brought from overseas, can compete with the domestic pair? In these circumstances, require government support. To protect domestic agricultural producers also can only be the development of relevant laws and control over their implementation.
In 2006, a number of federal laws governing the various aspects of relations in the agricultural sector in the field of land relations, as well as necessary for the implementation of priority national project "Development of agriculture." The most important of them are the Federal Law "On the development of agriculture," which establishes the legal framework for the implementation of state social and economic policy in the sphere of agriculture, for the Russian population in food, agricultural raw materials, and promote sustainable development of rural areas.
• There is a lag in the development of a network of rural roads. Remedy the situation is only one way - the adoption of appropriate laws. Together with the government developed and will soon be adopted by the Federal Law on Amendments and Additions to the Federal Law "On the development of agriculture" in terms of state support for the industry, the implementation of measures to support the incomes of agricultural producers and sustainable development of rural areas. At the same time provide increased funding for the development of educational institutions in rural areas, cultural and leisure activities and material-technical base of culture club type. It is planned to increase the volume of construction and reconstruction of rural roads and other transport infrastructure, as well as the allocation of funds in these areas.
The peculiarity of modern agricultural production is the need to create the optimum relationship of ecology and economy to ensure sustainable development of agricultural food complex in accordance with the concept of the United Nations Conference on Environment, held in 1992 in Rio de Janeiro. In Russia, however, this principle is underestimated. In the 1990s, the liberal economic reforms in the agrarian economy have focused on the transformation of property, land relations, carrying out institutional reforms, no attention was paid to the state of Agro ecological land resources, compliance with the requirements of agricultural crop. In the establishment of the market was dominated by the desire to obtain the maximum profit that successfully solve the economic problem of supply and demand, ignoring the environmental factor that has led to a deterioration in agro-ecological condition of the land. The bet is placed on the market self-regulation in the agricultural sector, indicating the cultivation of those crops whose products are in demand.
Thus, our analysis suggests that the market conditions for achieving positive economic results, to increase profits once again ignored the environmental factor, and land resources ruthlessly exploited. Moreover, not only violated the requirements of agricultural and farming systems, but does not improve financial support for the intensification of production, introduction of advanced environmentally sound technologies that improve soil fertility.
For example, in the last two years of mineral fertilizers by an average of 1 ha of cultivated area does not exceed 23-25 kg. The share of the rich fields of mineral fertilizers is only 33% (2006). Under grain crops made 26-29 kg, sunflower - 15 kg of fertilizers per 1 ha.
Small amounts of organic fertilizers, which account for an average of 1 ha of grain and sunflower 0.9 tons - 0.2 tons of enriched proportion of these fertilizers sown area is very scanty and in 2000 was 2.2% in 2003 and 2005 years. - By 3.4%. Do not compensated removal of nutrients from the soil with the crop, as estimated, researchers in Russia as a whole, it is 5 times greater than their introduction.
Consequently, the critical condition of the land Agro ecology country requires a qualitatively new intensification of agriculture, taking into account environmental factors, and with financial support from the government, aimed at creating an optimal logistics to improve the ecological and economic efficiency of land use. This should be fully contributed to the federal target program "Preservation and restoration of soil fertility of agricultural land and agricultural land as a national heritage of Russia, 2007-2011." The absence of the necessary energy and human resources not only leads to a decrease in the yield of plants, but also to the aggravation of the environmental situation. The elimination of this limiting factor will contribute to sustainable development of agriculture and agriculture in general.
The current situation in the agricultural sector requires further development of alternative farming systems that can ensure sustainable development of agricultural production. The State Program "Development of agriculture and regulation of markets for agricultural products, raw materials and food for 2008-2012" seeks to preserve and maintain agricultural landscapes in the system of agricultural production. Its essence is to adapt agricultural production to the various elements agro landscape, forms of economic and material resources. This system is designed to create conditions for environmentally sound and economically viable management of natural and man-made resources, sustainable agricultural development in general.
World Trade Organization and Russia
A work on preparing the report of the Working Party on Russia's accession to the WTO had started from January 2002 in Geneva. This document should be recorded the basic conditions of Russia's access to the organization and a list of additional requirements and obligations to our country. As a result, the protocol on Russia's accession to the WTO was signed December 16, 2011 in Geneva. But Russian Federation will become a full member of World Trade Organization only after ratification of all necessary documents, after 23July.
Alpha
Under the accession agreement, Russia took a number of important commitments to open trade regime and accelerate its integration into the global economy. The deal offers a transparent and predictable environment for trade and foreign investment.
On the date of accession, Russia pledged to fully implement all provisions of the WTO, with multiple transitions (see details below). The obligations of the Russian Federation include the following areas: * Market access for goods and services. In the framework of accession of Russia has signed 30 bilateral agreements on market access for services and 57 agreements on market access for goods. * Market access for goods - Commitments on tariffs and quotas. The average marginal rate in Russia up 7.8% from 9.5% in 2011 for all products. The average marginal tax on agricultural products will fall to 10.8% compared to the current average tariff of 13.2%. Changes in key areas of customs and tariff policy of the country for the next year and planning period 2014-2015 years are expected to be. As a result, the first practical consequence for Russia from WTO accession is the fixation of the upper level of import duties, that is, reduction of tariff protection of domestic producers and additional features of the importing countries to supply their products to our market.
The average rate of customs duty, taking into account benefits and preferences
According to the graphic above there is a reduction of tariffs for agricultural products. Moreover, it is supposed to be reduced for 7.1%, concerning the changes in key areas of customs and tariff policy of the country for the next year and planning period 2014-2015 years.
Consumers benefit from the reduction of fees and tariffs because it imports have to become cheaper. However, many manufactures associates their risks with a reduction in tariffs. They are afraid that cheap imports will crush local producers. But for some food items domestic manufacturers and importers are working in different niches. For example, imported cheeses generally expensive, they do not compete with the majority of Russian production. Meat on the market the most sensitive point - pork imports. But the risks can be mitigated by introducing protective measures to assist in domestic support measures. Furthermore, entering in the WTO, as a head of Ministry of Economic Development of Russian Federation told, will be the impetus for the development of the country's competition, and competition - is the key to effectiveness. Investors will get a good signal. Russia expects from partners to improve access of our products to international markets. Now the annual losses from discriminatory sanctions on our companies $ 2 billion. Consequently, our government plan to increase the level of subsidies to the agricultural sector from $ 4 billion to $ 9 billion, which also will help small farmers and larger enterprises to compete with foreign production. As a result, all these measures and changes increase the chances of Russian Federation to improve its agricultural sector and to do it more interesting for foreign investments and enterprises.
Export duties
Export duties would be fixed for over 700 tariff lines, including certain products in the sectors of fish and crustaceans, mineral fuels and oils, raw hides and skins, wood, pulp and paper and base metals.
Agricultural subsidies
The total trade distorting agricultural support would not exceed USD 9 billion in 2012 and would be gradually reduced to USD 4.4 billion by 2018.
To avoid excessive concentration of support on individual products, from the date of accession to 31 December 2017, the annual agricultural support going to specific products would not exceed 30% of the agriculture support that is not for specific products.
All agricultural export subsidies will be bound at zero.
The VAT exemption applied to certain domestic agricultural products would be eliminated upon accession.
And our government has decided not to create discounts on rail fares for transportation of grain. Moreover, the lack of low-cost supplies of fuel and fertilizers to farmers is supposed to be. That means that the price may be higher for our domestic products in the field of agricultural sector and at the beginning it will be too hard to compete with import products.
Trade-related investment measures
The Russian Federation would ensure that all laws, regulations and other measures related to the Agreement on Trade-Related Investment Measures would be consistent with the WTO provisions.
All WTO-inconsistent investment measures, including preferential tariffs or tariff exemptions, applied in relation to the existing automobile investment programmes and any agreements concluded under them would be eliminated by 1 July 2018. No other trade related investment measures inconsistent with the WTO Agreement may be applied after Russia’s accession to the WTO.
Functioning of the Custom Union between Russia, Kazakhstan and Belarus
The Custom Union between Russia, Kazakhstan and Belarus was created on 1 January 2010. All customs borders were removed between the three countries on 1 July 2011.
From 1 January 2012, the three states would have a single economic space.
The Russian Federation would publish any Custom Union legislation before adoption and would provide a reasonable period of time for WTO members and all stakeholders to comment to the competent Custom Union Body.
Taking everything into consideration, we have come to a conclusion that there are several facts you have to pay attention on: * Meeting the requirements of Russia since the accession to cancel or continue to use all the federal and regional grants, subject to the measures ASCM (Agreement on Subsidies and Countervailing), would entail a complete revision of existing rules and procedures of state domestic producers through direct and indirect subsidies from the federal budget and from the budgets of the Federation. * The budget for supporting our agricultural sector is limiting to $ 9 billion dollars, otherwise not is it only $ 4 billion. So it can be doubled and consequently, a new perspectives for agricultural development appear (technological innovations, new methods for leading household for farmers and small enterprises). * The reduction of customs tariffs on imports. As a result, the role of competition grows, which will help to increase the efficiency of enterprise development in agriculture sector. In addition, the government will aim to support local producers. * Moreover, Russian Federation has a good connections and trade contracts with Kazakhstan and Belarus. So, there are good chances to enter the markets of these countries through Russian. * The transition from direct state support to the development of production infrastructure. * The increase in sales in the area of agriculture is also expected. Consequently there will be additional funds for agricultural development.
Conclusion
In terms of the competitiveness of Russian agriculture issues are of paramount importance, first of all, the macroeconomic policy of the state, and secondly, the state of the resource sector.
In terms of macroeconomic policy, exchange rate policy can play a key role. Implementation of the policy with respect to weak domestic currency increases the competitiveness of domestic agriculture, so that possible concessions to the WTO import tariffs will not lead to an increase in food imports. Conversely, excessive strengthening of the ruble could lead to negative consequences for domestic food producers, even when setting a relatively high import tariffs.
From the perspective of the state of the resource sector are extremely important consequences for agriculture will be the reform of natural monopolies. At present, Russian agriculture consumes perhaps the cheapest in the world of fuel and lubricants, mineral (nitrogen) fertilizer, natural gas and electricity, combine harvesters and tractors (although the quality and reliability of agricultural equipment are far from perfect). According to independent studies, all else being equal, the cost of crop production in Russia is now the lowest in the world. Extremely low-cost means of production creates a pool of competitiveness, which currently enjoys the agricultural sector. If the reform domestic prices of the means of production will be equal or come close to the world, it will lead to severe if not catastrophic consequences for domestic agriculture.
Sources:
Rossiyskaya Gazeta, Ministry of Agriculture has approved a roadmap to control imports, [06.06.2012]. URL: < http://www.rg.ru/2012/05/12/karta-anons.html>
Podatinet. Tax Portal [11.06.2012] URL: http://www.podatinet.net/2011121922712/news/news/posle-18-let-peregovorov-o-prisoedinenii-k-vto-rossiya-vytorgovala-sebe-nebyvalye-usloviya-chlenstva-v-etom-klube.html
Official website of WTO. Working Party seals the deal on Russia’s membership negotiations [11.06.2012] URL: http://www.wto.org/english/news_e/news11_e/acc_rus_10nov11_e.htm
Center for the Study of the customs tariff and nontariff regulation. Information about the commitment of the Russian Federation to the WTO [11.06.2012]URL:<http://www.regfortrade.ru/?option=com_content&view=article&id=1459:2011-11-15-07-18-55&catid=1:latest-news&Itemid=148>
--------------------------------------------
[ 1 ]. Rossiyskaya Gazeta, Ministry of Agriculture has approved a roadmap to control imports, [06.06.2012]. URL: < http://www.rg.ru/2012/05/12/karta-anons.html>
[ 2 ]. Podatinet. Tax Portal [11.06.2012] URL:
[ 3 ]. Official website of WTO. Working Party seals the deal on Russia’s membership negotiations [11.06.2012] URL:
[ 4 ]. Center for the Study of the customs tariff and nontariff regulation. Information about the commitment of the Russian Federation to the WTO [11.06.2012]URL: 