Russian fish business preparing for joining WTO
The Russian Union of Producers and Entrepreneurs organized hearings on influence of WTO membership on the agricultural complex of Russia which is now in the process of joining the World Trade Organisation, reports http://www.megafishnet.com/.
On Russia's entering the WTO direct subsidies of exports will be prohibited. VAT compensation for export shipments will continue, but it will be unified to a single rate (versus current rates of 10% and 18%). Starting from 1 July 2012 Russia will begin compliance with the level of linking the customs duties as one of the nation's commitments to the WTO. In particular, for several articles customs duties will be decreased (for salmon products namely - from 10% to 3% during five years).
At the current stage the most-favoured-nation regime of the General System of Preferences (that obliges WTO member countries to treat the imports of all other WTO member countries no worse than they treat the imports of their "most favored" trading partner) is prohibited under the WTO regulations, but it is valid on default between nations in the grey zone. In case of trade with the most-favoured nations the Russian Federation will continue enjoying soft customs duties for some time. Towards that end Russia will sign bilateral trade agreements with Bangladesh, Vietnam and other states.
After Russia joins the WTO, national customs bodies will be facing difficulties in the update of the customs value. The thing is that, according to the international requirements, calculation of the customs duty is based on the value specified in the contract, while Russia has six methods to define the customs value.
In the course of the WTO negotiations foreign partners have admitted that Russia's current veterinary-hygiene regulations are much stricter than in WTO member states, but Russia has preserved the right to regulate strictness of such control. However, in case if one of the WTO nations has claims on the issue, Russia will have to present grounds and scientific calculations in defense of such measures.
German Zverev, Chairman of subcommission on fishery industry and aquaculture of the Russian Union of Producers and Entrepreneurs, says that generalized recommendations as to seafood import and export regulations are now being prepared by the subcommission and will be forwarded to the Union's administration in some three weeks.