Russia: Announcement of New Modified Trade Strategy, 2011-2013
Description
Priorities for the customs and tariff policy of Russia will be adjusted according to the draft guidelines for customs and tariff policy in 2011 and the planned period 2012 and 2013 which has been prepared by the Russian Ministry of Economic Development. This draft takes into account the concept of long-term socio-economic development of the Russian Federation until 2020, the Guidelines of the Government of the Russian Federation until 2020 and the Guidelines for Foreign Policy of the Russian Federation until 2020. Priorities for the customs and tariff policy for the medium term as a whole have been identified in the Major areas of customs and tariff policy in 2010 and the planned period 2011 and 2012.
The strategy also describes the results of customs-tariff policy in 2009. Thus, out of 1000 tariff lines, which were changed in 2009, the import tariff on 570 tariff lines were increased and on 430 tariff lines were decreased. The tariff increase was introduced on 10,2% of the Russian imports, the tariff decrease - on 2,5% of Russian imports.
The global financial and economic crisis, a significant narrowing of the global and domestic demand, the implementation of anti-crisis measures, as well as the establishment of the Customs Union of Russia, Belarus and Kazakhstan stipulate the need to adjust priorities for customs and tariff policy which were announced in June 2009.
First, it is necessary to ensure the effectiveness and efficiency of the functioning of a supranational regulatory framework of the Customs Union. This will require implementation of appropriate policies, procedures and regulations, allowing effectively coordinating positions of the parties and taking them into account in the decisions to a supranational body.
Second, to develop and implement effective mechanisms to promote Russia's position in the Customs Union, to strengthen the validity of the proposed decision by the Russian side, the prediction of their socio-economic and trade policy implications.
Third, modern problems of the Russian economy dictate the need for tighter integration of customs and tariff policy in the process of diversification, restructuring and innovation in the domestic industrial complex. During the transition to innovation-based economy role of customs-tariff measures should be strengthened in the implementation of industrial policies. Thus, there is a need for greater tariff protection of specific markets in the initial production cycle of innovative products, to ensure the gradual opening of markets to the extent of their formation, segmentation and increase the competitiveness of domestic enterprises to maintain a competitive environment. At the same time it is necessary to set the customs and tariff and nontariff regulation to encourage production and export of innovative, high-tech products together with the development of institutions promoting exports, improving the regulatory framework in the field of customs policy. Further simplification and reduction administrative procedures is required, as well as the use of all instruments of measures to protect the market, permitted by the WTO rules.
The draft states that customs tariff policy in 2011 should become one of the key factors of competitive advantage of the Russian innovative businesses on domestic and world market through the following directions (selected ones):
- further improvement of the Common Customs Tariff of the Customs Union and increase of its regulative function, keeping at the same time fiscal function of the customs tariff regulation;
- combination of customs tariff policy with non-tariff policies which provides complex protection of national economic interests in external trade;
- active use of special instruments in regulation of imports in agricultural sector (seasonal tariffs, import rate quotas, etc.). Those measures will be connected with government agricultural policy;
- improvement of export tariffs mechanism in order to balance fiscal and competition effects.
In 2012-2013 the priority will be given to the import of high tech equipment which can increase the competitiveness of the domestic production and increase exports. The export tariffs will remain in certain areas such as oil and oil products, forest, and scrap metals.
The draft also describes the qualitative changes in the format of trade-political interaction within the Commonwealth of Independent States (CIS). The draft of agreement on multilateral free trade area within CIS was developed in 2007-2008. The agreement is expected to be signed in 2010-2011. The creation of free trade area within the CIS region reflects Russian strategic interests and dos not contradict Russia's commitments with regard to the Customs Union or the WTO. This agreement will substitute multiple bilateral agreements within the CIS region; introduce one interpretation of trade terms and procedures; cover substantially all trade; contain Dispute settlement provision as well as provisions which include procedure for other countries to join the FTA.
Any Evidence-Based Deliberation:
| Question | Result |
|---|---|
| Is there anything in the public record to suggest that evidence of the effectiveness of the proposed measure was considered during official deliberations? | |
| Is there any evidence that alternatives to the proposed measure were considered? | |
| Is there anything in the public record that suggests that empirical evidence informed the comparison across the alternatives available to government? | |
| Was such evidence identified? | |
| Is such evidence publicly available? | |
| Did the official decision-maker in question provide an explanation as to why a chosen measure was favoured over alternatives? | |
| Is there any evidence to suggest that potentially affected trading partners were consulted before the measures were taken? | |
| Is there any evidence that safeguards have been put in place to ensure that implementation of the initiative is transparent and non-discriminatory? | |
| Did the government state its intention to review the measure within one year of implementation? |
Date Discovered:
Implemented: No
Date of inception:
GTA Evaluation: Amber
Related Measures:
Source:
Ministry of Economic Development. The Main directions of Customs Tariff policy for 2011 and 2012-2013 years (7 April 2010). Available from < http://www.economy.gov.ru/minec/activity/sections/foreignEconomicActivit... >
Government Response:
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