Belarusian manufacturers face bankruptcy
- 22.08.2012, 12:41
Because of Russia's WTO accession Belarusian enterprises will have to cut expenses and dismiss some workers.
Economist Leanid Zaika told to website charter97.org, what consequences will have Russia's entry into the World Trade Organization (WTO) to Belarus.
"The first half-year the effect of Russia's accession to the WTO will not be very noticable for Belarus. Major changes will begin after 1.5-2 years. The competitiveness of our agricultural, sewing and other companies will decrease under the influx of cheaper goods to Russia. This may lead to the bankruptcy of Belarusian producers", - said the economist.
"Business in Belarus will have to adapt. Now Belarus has many hidden niches where we can get some financial damage. That will be due the fact that quality and price of our products yield import goods", - believes Zaika.
"Competition in our market will continue to grow, the Belarusian prices will be high and one will have to cut costs on the production and dismiss some workers", - said the economist.
"The main reason why states join the WTO is because it leads to a decrease in the general level of prices for many goods. As a consequence, the welfare of people will increase, but will reduce the level of employment. And those who work on unprofitable production will have to find a new job", - said Leanid Zaika
Belarusian economist also commented on the dictator’s statement that "Belarus has one foot in the WTO."
"Lukashenka said this, because he was scolding the farmers. Besides personal abusing, he now recalled that Russia's entry into the WTO will strengthen competition on Russian market, new dangerous competitors from New Zealand will appear. Already now in Russia operate several Australian firms that produce sausage from kangaroo", - said Zaika.
"We thought that our exports of eggs to Russia will go well, but they already fully provided its market with eggs. They are also close to the full provision of broiler chickens", - gave the expert an example.
"When people will see that a dozen of eggs became cheaper, this will mean that Russia doesn’t buy our products anymore and manufacturers have to lower prices in the domestic market", - said Zaika.
"Whether Belarus will enter the WTO or not, I do not see this as a problem. The Common Market will work on the WTO ", - added the economist.