THE INFLUENCE OF RUSSIA'S ACCESSION TO THE WTO ON THE DEVELOPMENT OF THE NATIONAL STEEL INDUSTRY

I. P. Ilychev, V. V. Brinza and O. A. Ugarova

Russian Journal of Industrial Economics, 2015, issue 3

Abstract: This article describes the problem and the consequences for the steel industry after joining the WTO. Analyzed changes in customs duty on basic commodities of metallurgical complex after Russia's WTO accession. Revealed that, in accordance with Annex 1 to the Protocol of accession, the import decline rates on foreign steel products will be from 12 to 100%. Reduction of import rates will apply to all types of metal products. And a large part of metal products from cast iron, steel and rolled products will be completely exempted from levying import duties and will be imported into the Russian Federation freely. Shows that a reduction in customs duties and the cost of doing anti-dumping processes will increase the offer of both Russian and foreign suppliers of metal products.In order to detect effects that would occur in the Russian metals industry attractiveness analysis was performed of the iron and steel industry in accordance with the methodology proposed, based on an analysis of Porter's five forces competitive industry: the threat of new competitors on the market, the threat of substitute products, the threat of increasing market power of buyers, the threat of increasing market power of suppliers and the threat of increased competition between competitors – companies in the market. Competitive forces analysis leads to the conclusion that the level of competition faced by Russian metallurgical companies after Russia's WTO accession as all the provisions of the Protocol of accession will grow, which will worsen the economic situation of Russian metals companies and generally reduce the attractiveness of the Russian metallurgy.Analysis of effects of entry into WTO for the domestic steel industry are presented in the form of cognitive maps – a graphical representation of complex multi-part semi-structured systems. Expediency of the regularities of the development of the market of steel products, setting trends for growth concentration or easing conflict interaction of its members based on a cognitive approach using machine counts and iconic quality modeling.

Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:ach:journl:y:2015:id:135

DOI: 10.17073/2072-1633-2013-3-55-63

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