Russia falls prey to protectionism

Russian Prime Minister Vladimir Putin has announced a gradual increase in import duties on cars. Moscow is thus deliberately blocking its own path towards joining the World Trade Organisation, writes the business paper Il Sole 24 Ore: "The Russian prime minister has explained to carmakers that Russia is raising the duties because it wants them to produce on Russian territory. This is a policy of localisation. As history has taught us, this policy is an effective demagogy which however tends to be short-lived. It is doomed to failure. ... The great success of manufacturers in the emerging economies is based on exports, not on the domestic markets, no matter how big they may be. Putin wants to play the role of the last protectionist at any price. ... A role which becomes more plausible and stronger the longer he delays the adoption of the current regulations, and in this case accession to the World Trade Organisation."

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