Russia's WTO Accession Expected to Affect Prices in Estonia
Accession of Russia to the World Trade Organization (WTO) and consequent lowering of duty barriers will make Russia’s large food market even more appealing to European producers and is also expected to affect the prices of products in Estonia.
According to Janne Lihavainen, CEO of the Prisma supermarket chain, Estonia will eventually benefit from Russia’s accession. Nevertheless, before that happens, short-term but steep price hikes on food products are likely, Lihavainen told Eesti Päevaleht.
Most local manufacturers will attempt to increase their export to Russia, which will reduce the offer on the domestic market and raise the cost of food, Lihavainen predicted.
At one point, however, Russian producers will discover that it has become cheaper to export their goods to Estonia, which will mean new products on the market and pull down the average price of the shopping basket, said Lihavainen.
Ingrid Teesalu