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FEDERATION TO THE WORLD TRADE ORGANIZATION 53 страница



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1442. The representative of the Russian Federation stated that his Government believed that an obvious advantage of WTO Membership for CIS member states would be the implementation of the WTO requirement to bring the legislation of its Members into compliance with WTO norms and rules. As a result, trade among CIS countries was likely to become more efficient. When expanding and implementing trade and economic agreements with CIS countries, including the Eurasian Economic Community, at both multilateral and bilateral levels, the Russian Federation currently took due account of existing or future obligations of these countries as current or potential WTO Members. He also noted that Georgia, Moldova, the Kyrgyz Republic, the Republic of Armenia and Ukraine, which were parties to a number of these preferential agreements with the Russian Federation, had joined the WTO between 1998 and 2008. He recalled that those respective Agreements had also been discussed in the respective accession Working Parties of these countries.

1443. A regime of free trade in goods had been established between the Russian Federation and each individual CIS country and Georgia, based on bilateral agreements that covered a substantial part of trade in goods between them. All of these Agreements were currently in force and fully operational. In accordance with these Agreements on free trade, and similar agreements with the Republics of Serbia and Montenegro, the importation of 99 per cent of all goods (including agricultural products) originating from these countries into the customs territory of the Russian Federation was not subject to customs duties, and 66 per cent of exports of the Russian Federation to these countries was also duty-free. The list of exceptions was found in Table 33. He added that efforts had been made to create a single CIS-wide free trade area when, on 24 September 1993, CIS Member States had signed the Treaty On the Creation of the Economic Union, ratified by all CIS Member States, except Ukraine, who participated in the Treaty as an associated member. In accordance with the provisions of the 1993 Treaty, CIS Member states signed on 15 April 1994 the Agreement on Establishing a Free Trade Area. This Agreement provided for the gradual elimination of customs duties, taxes and charges and other limitations and obstructions to free movement of goods. The Agreement had been further modified by the Protocol on Amending the Agreement on Establishing a Free Trade Area, signed by CIS Member States on 2 April 1999. The Protocol established that the Free Trade Area (FTA) was to be implemented via existing or future bilateral agreements and protocols on exemptions. He added that the 1994 Agreement and the 1999 Protocol had been ratified by all CIS Member states, except the Russian Federation, and therefore, along with the 36 basic inter-governmental documents agreed under the amending Protocol, had not come into effect for the Russian Federation.

1444. More recently, the Russian Federation, along with the Republics of Kazakhstan and Belarus, had resumed collective negotiations with other CIS Member states to establish an FTA among the CIS Members. Five meetings to draft the Agreement had been held thus far and work on the draft continued in 2010. When completed and implemented, the new Agreement would focus on creation of a uniform legal structure based on WTO rules and regulating trade and economic relations within the framework of an FTA. The draft Agreement provided for, inter alia, elimination of import customs duties and restrictions in mutual trade, obligations regulating the levels and the application of export duties, coordinated application of safeguard measures in mutual trade, competition and subsidies rules, technical barriers to trade, SPS measures, and an effective mechanism for dispute settlement, all with a view to making gradual progress towards a common economic space. In the course of the negotiations, a common list of CIS-wide tariff exceptions from the free trade regime was being discussed with a view to substantial reduction of the number of tariff lines currently exempted under the bilateral CIS FTAs. Upon its entry into force, the new Agreement would replace the individual FTAs of the CIS countries with the Russian Federation and establish a CIS-wide preferential trade area. It was expected that negotiations on the new multilateral FTA would be finalized by the end of 2010. The Russian Federation also hoped to conclude more agreements on trade liberalization on this basis in the future. Currently, 25 countries and regional integration groups, including the Arab Republic of Egypt, the Syrian Arab Republic, New Zealand, and EFTA, had proposed to negotiate FTAs with the Russian Federation.

1445. Members inquired as to whether preferential access to exports of other CIS countries to the market of the Russian Federation was limited to exporters resident in the exporting countries as, if this was the case, this provision would be inconsistent with WTO obligations.

1446. In response, the representative of the Russian Federation said that the preferential trade agreements concluded by the Russian Federation had effectively led to the elimination of customs duties and other restrictive regulations of commerce, with the exception of duties on a number of exports of the Russian Federation to CIS countries not Parties to that Customs Union, in respect of substantially all trade between the Russian Federation and the parties to these Agreements. Duties on exports of the Russian Federation of petroleum and petroleum products existed on CU trade as well, except for the Republic of Kazakhstan. With regard to exports from other CIS countries to the Russian Federation, trade preferences were granted to goods originating in respective territories of parties to these preferential agreements on the basis of a certificate of origin pursuant to the Rules of Origin of Goods adopted by the Decision of the Council of Heads of Government of the CIS of 30 November 2000, provided that the exporter was a resident of the exporting country, i.e., a resident under the legislation of the exporting country party to the relevant agreement and that it had been shipped directly from another CIS Member. In the case of the Russian Federation, that meant that only goods exported from firms, which were residents of the Russian Federation, could be considered eligible for preferential access to other CU markets. The residency requirement for free trade between CIS countries and the direct shipment requirement were necessary for the effective implementation of those preferential agreements, to avoid false declarations of origin and combat money laundering, and did not, in the view of the Russian Federation, have practical effects for trade. According to the statistics of the Russian Federation, preferential trade represented 13.2 per cent of the total imports of the Russian Federation and 10.4 per cent of total exports in 2009, which included trade of the Russian Federation with all CIS countries, Georgia, the Republics of Serbia and Montenegro.

1447. The representative of the Russian Federation noted that an Agreement between the Government of the Russian Federation and the Government of the Federal Republic of Yugoslavia on Free Trade had been concluded on 28 August 2000. Since the establishment of the Republics of Serbia and Montenegro, as separate countries in 2006, the Free Trade Agreement has applied equally between the Russian Federation and these countries that had comprised the Federal Republic of Yugoslavia, prior to its dissolution. The original Agreement had not been ratified by the Russian Federation and was still being applied provisionally. Article 1 of this Agreement stipulated that the Parties would liberalize trade in accordance with the provisions of the Agreement and WTO rules in order to create a free trade regime. The Agreement provided for the duty-free movement of goods between the Parties covering substantially all trade, i.e. 99.7 per cent and 80.3 per cent of the imports from, and 63.3 per cent and 99 per cent of the exports to the Republics of Serbia and Montenegro, respectively in 2009, or about 95 per cent of the tariff positions. The remaining positions were on the list of exceptions appended to the Agreement and were subject to staged duty reduction but not elimination. On 3 April 2009, the Russian Federation and the Republic of Serbia agreed on a new schedule of exceptions from the free trade regime. A similar agreement with the Republic of Montenegro was developed and implemented with the Russian Federation, but not with the Republics of Kazakhstan and Belarus. The Republics of Serbia and Montenegro were currently consulting with Customs Union Parties concerning a new preferential trade agreement between them and those Members.

1448. Members of the Working Party sought a commitment that the Russian Federation would observe Article XXIV of the GATT 1994 and Article V of the WTO GATS Agreement in its participation in trade Agreements, and would ensure that the provisions of these WTO Agreements for notification, consultation and other requirements concerning free trade areas and customs unions were met upon accession, and that any subsequent legislation or regulations enacted or altered under these Agreements would remain consistent with the provisions of the WTO. More specifically, they indicated that the Russian Federation should notify its pre-existing as well as upcoming FTA, Customs Unions and Economic Union Agreements for review by the Committee on Regional Trade Agreements (CRTA) upon accession. In response, the representative of the Russian Federation stated that, upon accession, WTO Agreements, and in particular Article XXIV of the GATT 1994 would apply, and constitute the legal basis within which the Customs Union with the Republics of Belarus and Kazakhstan would operate and a Single Economic Space would be established. WTO provisions, to the extent that they covered the same issues as these Agreements, would prevail if a conflict arose. He further noted that the hierarchy of legal acts in the Russian Federation had been elaborated in the Section "Framework for Making and Enforcing Policies" of this Report.

1449. The Representative of the Russian Federation confirmed that the Russian Federation would observe the provisions of the WTO Agreement, including all requirements of Article XXIV of the GATT 1994 and Article V of the WTO GATS Agreement, in its participation in preferential trade agreements without any difference based on whether those agreements were already in effect on the date of accession or would come into effect in the future and would ensure that the provisions of the WTO Agreement for notification, consultation and other requirements concerning free trade areas and customs unions of which the Russian Federation was a member were met from the date of accession. He confirmed that the Russian Federation would, upon accession, submit notifications and copies of its Free Trade Area and Customs Union Agreements, as well as information, including legislative and other measures, relevant to implementation of these Agreements, to the Committee on Regional Trade Agreements (CRTA). The Working Party took note of these commitments.

 

CONCLUSIONS

 

1450. The Working Party took note of the explanations and statements of the Russian Federation concerning its foreign trade regime, as reflected in this Report. The Working Party took note of the commitments by the Russian Federation in relation to certain specific matters which are reproduced in paragraphs 34, 72, 99, 115, 116, 117, 132, 133, 183, 209, 214, 215, 227, 251, 275, 302, 313, 319, 323, 324, 337, 351, 352, 353, 364, 366, 369, 382, 392, 417, 424, 472, 476, 477, 480, 481, 483, 486, 487, 497, 514, 527, 548, 562, 566, 574, 591, 613, 620, 638, 668, 669, 677, 698, 712, 714, 715, 719, 728, 738, 739, 744, 745, 756, 761, 765, 772, 773, 784, 785, 787, 789, 798, 799, 803, 804, 813, 826, 844, 847, 870, 875, 876, 880, 885, 890, 893, 895, 901, 904, 908, 923, 926, 927, 928, 932, 935, 936, 944, 950, 952, 955, 981, 984, 989, 1009, 1011, 1030, 1031, 1033, 1035, 1051, 1055, 1060, 1062, 1089, 1090, 1122, 1124, 1137, 1143, 1144, 1161, 1186, 1187, 1189, 1200, 1208, 1218, 1224, 1226, 1232, 1253, 1260, 1271, 1277, 1294, 1295, 1303, 1312, 1325, 1331, 1338, 1339, 1350, 1353, 1392, 1393, 1395, 1397, 1398, 1400, 1401, 1402, 1404, 1405, 1406, 1413, 1426, 1427, 1428, 1430 and 1449. The Working Party took note that these commitments had been incorporated in paragraph 2 of the Protocol of Accession of the Russian Federation to the WTO.

1451. Having carried out the examination of the foreign trade regime of the Russian Federation and in the light of the explanations, commitments and concessions made by the representative of the Russian Federation, the Working Party reached the conclusion that the Russian Federation be invited to accede to the Marrakesh Agreement Establishing the WTO under the provisions of Article XII. For this purpose, the Working Party has prepared the draft Decision and Protocol of Accession reproduced in the Appendix to this Report, and takes note of the Russian Federation's Schedule of Concessions and Commitments on Goods (document WT/ACC/RUS/70/Add.1) and its Schedule of Specific Commitments on Services (document WT/ACC/RUS/70/Add.2) that are annexed to the Protocol. It is proposed that these texts be adopted by the Eighth WTO Ministerial Conference, 15 - 17 December 2011, when it adopts the Report. When the Decision is adopted, the Protocol of Accession would be open for acceptance by the Russian Federation which would become a Member 30 days after it accepts the said Protocol. The Working Party agreed, therefore, that it had completed its work concerning the negotiations for the accession of the Russian Federation to the Marrakesh Agreement Establishing the WTO.

 

Annex 1

 



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