Abstract
The negotiations aimed at the creation of the International Trade Organization (“ITO”) coincided with the growing political tension between the Soviet Union and the West which eventually led to the Cold War. The Soviet Union did not respond to the initial proposal to participate in the creation of the ITO due to the prevailing political situation,1 despite the fact that the parties to the ITO negotiations, notably the United States, attempted to involve the Soviet Union in the negotiations. The attempt to include the Soviet Union in the market-oriented trading system was reflected in the draft ITO Charter prepared by the United States.2 Due to the failure of the Soviet Union to respond, the merits of the Soviet participation were not formally discussed by the parties to the ITO negotiations.
She is based in Geneva. The views expressed in this paper are personal. She wishes to thank Arthur E. Appleton, Raul Torres, Elizabeth Upton, Elena Buranova and Guy Evans for their assistance with this chapter. Any errors that remain are her own. This chapter covers the Russian accession negotiations through September 2003. For an update on Part E see Julia Selivanova, WTO Rules and Energy Pricing: Russia’s Case 34(4) Journal of World Trade 559 (2004), and Melena Sell and Julia Selivanova, WTO Accession: Russia Secures Deal with the EU, 8(6) Bridges 9 (June 2004).
The Soviet Union voted initially in ECOSOS in favor of the creation of the ITO.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
This proposed U.S. draft of the ITO Charter contained the following provision: “Any Member establishing or maintaining a complete or substantially complete monopoly of its import trade shall promote the expansion of its foreign trade with the other Members in consonance with the purposes of the Charter.” Suggested Charter for an International Trade Organization of the United Nations, U.S. Department of State, Pub. No. 2598, Com. Policy Ser. No. 93 (1946).
Peter Naray, Russia and the World Trade Organization 16 (2000).
Id. at 2, 16. Yugoslavia joined GATT in 1966, Poland in 1967, Romania in 1971, Hungary in 1973.
Id. at 17.
Id. at 25.
Id. at 25.
South-North Development Monitor, Soviets Interested in Joining New Trade Round in GATT (March 25, 1986).
South-North Development Monitor, Soviet Application to GATT Aimed at Eventual Accession (September 11, 1986).
Id.
Naray, supraPeter Naray, Russia and the World Trade Organization (2000) note 3, at 19.
Id.
Id.
GATT, Union of Soviet Socialist Republic, Request for Observer Status, L/6654 (March 12, 1990).
See GATT, Communication from the Russian Federation, L/6978 (January 28, 1992).
GATT, Accession of the Russian Federation, L/7240 (June 4, 1993).
WTO, Working Party on Accession of the Russian Federation, WT/ACC/RUS/1 (May 18, 1995).
GATT, Accession of the Russian Federation—Memorandum on the Foreign Trade Régime, L/7410 (March 1, 1994).
WTO, Accession of the Russian Federation—Additional Questions and Replies, WT/ACC/RUS/9 (April 23, 1996), at 24; Accession of the Russian Federation—Questions and Replies to the Memorandum on the Foreign Trade Régime, WT/ACC/RUS/2 (June 2, 1995).
Julia Selivanova, Russia’s Accession to the WTO: Multilateral and Domestic Policy Considerations, 7(2) Bridges (March 2003).
Keith Bush, Russian Economic Survey, U.S.-Russia Business Council (2002), at 22.
Information Office on Accession of Russia to WTO, Main Stages of Russia’s WTO Accession Negotiations, at http://www.wto.ru/russia.asp?f=etaps&t=10 (visited November 14, 2003).
Currently the WP discusses the third version of the draft Report. See Press Release of the Information Office on Accession of Russia to WTO (July 11, 2003), at http://www.wto.ru/ru/news.asp?msg_Id.=5453 (visited November 14, 2003).
Transition periods have been often the subject of discussions in accession Working Parties of acceding countries. The transition periods granted to original WTO Members have not been automatically granted to governments acceding under Article XII, regardless of their level of development. A few transition periods have been granted in limited areas and for short periods of time. In general, Members pointed out that there was no provision for the automatic granting of transition periods to acceding governments. The transition periods contained in the WTO Agreements were accorded to original Members to help them become accustomed to their new obligations. Acceding governments were in a different position, as they had known the requirements of the WTO Agreement since the date of its entry into force. Nevertheless, some Members said that they were not, a priori, opposed to transition periods, provided that there was a clear justification for them (Technical Note on Accession Process, WT/ACC/7 (March 10, 1999), at 3, 6 and 7).
Murray Smith, Russia and the General Agreement on Trade in Services, in Russian Trade Policy: Reform for WTO Accession 31, 37 (Harry Broadman, ed. 1999).
Id.
Id. at 38.
Andrew Gowers, Robert Cottrell and Andrew Jack, Interview with Vladimir Putin, Financial Times, (December 16, 2001). See also РИА-Новости, М. Кaсьянов: Россуя ƨоmовa nрuняmъчленсmво в ВТО лuщъ нa сmaн∂aрmных,обшuх ∂ля всех сmрaн условuях (24 апреля 2002).
Naray, supraPeter Naray, Russia and the World Trade Organization (2000) note 3, at 106.
For agricultural goods the rate was 36 and 26 percent respectively. For industrial goods the rate was 20 and 15 percent. See Naray, supra Peter Naray, Russia and the World Trade Organization (2000) note 3, at 105.
Id.
See Frances Williams, Russia in Push Over WTO Membership, Financial Times (July 11, 2003).
Константин Смирнов, Россuю в ВТО не ж∂уm. С нынещнuмu ценaмu нa ƨaэ, Коммерсант, 26 марта 2003.
WT/ACC/7, supra note 25, at 3.
Naray, supraPeter Naray, Russia and the World Trade Organization (2000) note 3, at 103.
A. K. Kushnirenko, Tariff Negotiations of Russia with WTO, Information Bulletin Russia on the Way to WTO, No. 3 (January–February 2002). See also Information Office on Accession of Russia to WTO, Moscow, On the Current State of Russia’s WTO Accession Negotiations, Strategy of Shaping up Tariff Proposals on Market Access for Goods Within the Framework of Russia’s Accession to WTO.
Id.
Importers circumvented the quota on sugar by mixing raw sugar with water and importing it as syrop. Recently Russian government started an investigation on imports of sugar syrop. See Ринат Сагдиев, Анастасия Онегина, Бuэнес не∂оволен эaшuмой, Business News Media-Ведомости (16 июля 2003).
Id.
Resolution of the Russian Government No. 48 (January 23, 2003).
Resolution of the Russian Government No. 50 (January 23, 2003).
Resolution of the Russian Government No. 49 (January 23, 2003).
Personal interviews with WTO negotiators. See also supra Константин Смирнов, Россuю в ВТО не жƨуm. С нынещнuмu ценaмu нa ƨaэ, Коммерсант, 26 марта 2003 note 35.
Naray, supraPeter Naray, Russia and the World Trade Organization (2000) note 3, at 103.
Id.
Members requests in this sectors vary from zero to 7–8 percent tariff (Андрей Цыбульский, Усuлuвaя maрuфную эaшumу оmечесmвенных aвmоnроuэво∂umелей, nрaвumельсmво не уверено, чmо mе сумеюm ей восnольэовamься, Автомобильны е Иэвестия (19 октября 2002). See also Политком.ру, Россuя—ВТО: оmложенный фuнaл (11 марта 2002).
Information Office on Accession of Russia to WTO, supra Information Office on Accession of Russia to WTO, Moscow, On the Current State of Russia’s WTO Accession Negotiations, Strategy of Shaping up Tariff Proposals on Market Access for Goods Within the Framework of Russia’s Accession to WTO note 39, at 4.
Id.
Id.
See Inside U.S. Trade, U.S., Russia Blame Each Other for WTO Accession Delay (October 11, 2002).
Интерфакс, Торƨовая nалаmа США nоможеm Россuu всmуnumь в ВТО—nрезu∂енm nалаmы Томас Донохью (24 апреля 2002).
Ичvан Сас, Бескрылая сmроnmuвосmQj: в uнmересах оmечесmвенноƨо авuаnрома Россuя ƨоmова оmсрочumь nрuсое∂uненuе к ВТО еще на 15–20 леm, Независимая газета (28 февраля 2002).
The phrase “single undertaking” refers to the Agreements and obligations that all original WTO Members accepted to become Members. See Julia Selivanova: Will WTO Provide Added Thrust for Russian Aviation? 10(53) AmCham News (May–June 2003), at 9.
Andrew Hurst and Darya Korsunskaya, Chances of Quick WTO Entry ‘Gloomy’, Moscow Times (April 7, 2003). See also Avery Johnson, In Need of an Overhaul and Not Just for WTO, Moscow Times (October 16, 2002).
Information Office on Accession of Russia to WTO, supra note 39, at 4.
Selivanova, supra Julia Selivanova: Will WTO Provide Added Thrust for Russian Aviation? 10(53) AmCham News (May–June 2003) note 60, at 9.
Naray, supra Peter Naray, Russia and the World Trade Organization (2000) note 3, at 131.
Selivanova, supra Julia Selivanova, Russia’s Accession to the WTO: Multilateral and Domestic Policy Considerations, 7(2) Bridges (March 2003) note 20, at 19. See Вера Кузнецова, Парmнеры nо nереƨоворам хоmяm оказываmь Россuu услуƨu, Время Новостей (23 июля 2003).
See Constantine Michalopoulos, The Integration of Transition Economies into the World Trading System, The World Bank, Policy Research Working Paper Number 2182 (September 1999), at 30.
Information Office on Accession of Russia to WTO, Negotiations on Agriculture (April 2003), at 2.
Id. See also WTO, Accession of the Russian Federation-Additional Questions and Replies, WT/ACC/RUS/23/Add.1 (December 9, 1997), at 1.
Id.
Id. at 3.
Елена Короп, Марафон вокруƨ Женевско∂о озера, Финансовые Известия (23 июля 2003). See also Robert Cottrel, Lamy Seeks to Salvage WTO Membership Bid by Russia, Financial Times (October 19, 2002).
Information Office on Accession of Russia to WTO, supra note 68, at 3.
Экатерина Шохина, Торƨ начался: сmарmовалu nереƨоворы о конкреmных условuях всmуnленuя Россuu в ВТО, Эксперт (17 декабря 2001), see also Зоя Каика, Раэƨовор о ВТО сmановumся ∂еловым, хоmя ∂о всеобщей ƨармонuu еще ∂алеко, Ведомости (10 декабря 2001).
Information Office on Accession of Russia to WTO, supra note 68, at 2.
Information Office on Accession of Russia to WTO, supra note 39, at 4, at 1.
See Part II(B)(2) and supra notes 43, 44 and 45.
The United States, Canada, Argentina, Japan, Australia and New Zealand “criticized the quota on poultry and tariff-rate-quota on beef and pork imports, with Australia and New Zealand calling them backward steps that violated an informal standstill principle, under which most countries in the process of acceding agree not to introduce new trade restrictions. This is endangering their efforts to complete their accession and will delay negotiations.”(Inside U.S. Trade, WTO Members Say Russian Import Barriers Set Back Accession Talks (March 14, 2003).
Inside U.S. Trade, Zoelick Says Russian Meat TRQs Bad Sign for Commitment to the WTO (February 28, 2003). Interestingly, a U.S. Department of Agriculture official noted that imposition by Russia of the restrictions “highlights the need to have Russia in the WTO” because itwould permit Russia to be held “accountable to international rules” (Id.)
Information Office on Accession of Russia to WTO, supra note 39, at 4, at 2. See also РИА-Новости, Для защumы россuйскuх nроuзво∂umелей nравumельсmво Россuu ввелосnециальную nошлuну на ввозuмое в сmрану слuвочное масло (22 августа 2002).
Id. at 3.
Id.
Константин Смирнов, Как Россuя ƨу∂еm всmуnаmь в ВТО, Коммерсант (24 апреля 2002).
Id.
Id.
Selivanova, supra Julia Selivanova, Russia’s Accession to the WTO: Multilateral and Domestic Policy Considerations, 7(2) Bridges (March 2003) note 20, at 19. Based on personal interviews with WTO negotiators. See also Information Office on Accession of Russia to WTO, Services Market Access Negotiations at http://www.wto.ru/monitor.asp?f=uslugi (visited November 14, 2003).
Smith, supra Murray Smith, Russia and the General Agreement on Trade in Services, in Russian Trade Policy: Reform for WTO Accession (Harry Broadman, ed. 1999) note 26, at 37.
WTO, Technical Note on Accession Process, WT/ACC/7/Rev.2 (November 1, 2000), at 137.
Id. at 138.
Ecuador, Mongolia, Bulgaria, Panama, Kyrgyz Republic, Latvia, Estonia, Jordan, Georgia, Croatia, Albania and Oman. Id.
Daniel Pruzin, WTO Members Surprised by Russian Law On Telecommunications, Interconnection Rate, 20(29) BNA (July 17, 2003), at 1225.
See Kozlov: Bank System to be Efficient by 2005. The Moscow Times (September 9, 2002), see alsoИлья Горбунов, Елена Короп, Правumельсmво взяло валюmный барьер, Известия (29 ноября 2002).
Federal Law No. 86-FZ On the Central Bank of Russia (July 10, 2002 with amendments of January 10, 2003), Article 8.
See Hurst and Korsunskaya, supra Andrew Hurst and Darya Korsunskaya, Chances of Quick WTO Entry ‘Gloomy’, Moscow Times (April 7, 2003) note 61.
Selivanova, supra Julia Selivanova, Russia’s Accession to the WTO: Multilateral and Domestic Policy Considerations, 7(2) Bridges (March 2003) note 20, at 19. Based on a personal interview with a WTO negotiator.
Agreement on Partnership and Cooperation Establishing a Partnership Between the European Communities and the Russian Federation, JOCE L 327 (November 27, 1997).
See Agreement on Partnership and Cooperation, supra note 100, Annex 7, Article B.2.
See Law of the Russian Federation No. 4015-I On Organization of Insurance Business in the Russian Federation (November 27, 1992 with amendments of December 31, 1997, November 20, 1999, March 21 and April 25, 2002), Article 6 (Закон РPФ от 27 ноября 1992 г. N 4015-I “Об организации страхового дела в Российской Федерации” (с изменениями от 31 декабря 1997 г., 20 ноября 1999 г., 21 марта, 25 апреля 2002 г.).
Алексей Рожков, Мuнфин разрабоmал nлан либерализацuuстраховоƨо рынка, Время новостей (21 марта, 2003). See also Ирина Коробкова, Нaмеренuе либералuзоваmь рынок всmреченовшmыки, Финансовые Известия (24 марта 2003).
Selivanova, supra Julia Selivanova, Russia’s Accession to the WTO: Multilateral and Domestic Policy Considerations, 7(2) Bridges (March 2003) note 20, at 19.
See Press Release of the Information Office on Accession of Russia to WTO (December 27, 2002).
Игорь Седых, Максим Ме∂ве∂ков: Я не бумаю, чmо ∂ы бысmро най∂ем решение, Коммерсант (14 июля 2003).
Pruzin, supra Daniel Pruzin, WTO Members Surprised by Russian Law On Telecommunications, Interconnection Rate, 20(29) BNA (July 17, 2003), at 1225 note 95.
See Daniel Michaels, Guy Chazan and Zach Coleman, Moscow Pockets Millions In Fees to Fly Over Siberia, Wall Street Journal (July 1, 2002).
Id.
Id.
Id.
In 1997, the only year the Association of European Airlines calculated what its Members paid Aeroflot, the total was US $225 million, according to the organizations’ annual report. Association officials say the figure was much higher in 2001. The airlines agreed to pay the fees since flying over Siberia produced huge savings compared to flights over the North Pole. See Michaels et al. supra Daniel Michaels, Guy Chazan and Zach Coleman, Moscow Pockets Millions In Fees to Fly Over Siberia, Wall Street Journal (July 1, 2002) note 108.
See Эл Брич, Маттиас Вестман, Росuя u ВТО: Наnрасныŭ сmрах Евроnы, Ведомости (28 апреля, 2003).
Rafael Behr, Andrew Jack, Russian Talks on WTO Entry Stall Over Energy, Financial Times (February 18, 2003).
The data from the OECD report show that in 2000 the difference between the average industrial prices for gas in Russia and OECD countries was about eleven times. See OECD Economic Surveys, Russian Federation, Volume 2002/5-February, at 118.
According to the OECD report (supra note 115, at 105) “almost 40 percent of natural gas supplied domestically goes toward the generation of electricity.”
Игорь Томберг, По∂лuнная ∂ена нuэкuх mарuфов, Politcom.Ru (July 4, 2002).
Константин Смирнов, Алена Корнышева, Мuхаuл Касьянов не сmал сnещumь с реформоŭ Гаэnрома, Коммерсант (20 марта 2003).
See OECD, supra note 115, at 119.
Inside U.S. Trade, New Draft Report Reveals Strong Differences on Russia’s Accession (December 6, 2002).
The OECD report notes: “The large revenues received by Gazprom from exports to Europe represent one major source of finance for these subsidies, part of which are also channeled through RAO UES in the form of cheap gas for electricity generation.” OECD, supra note 115, at 105.
Selivanova, supra Julia Selivanova, Russia’s Accession to the WTO: Multilateral and Domestic Policy Considerations, 7(2) Bridges (March 2003) note 20, at 19. See Константин Смирнов, supra note 83.
Константин Смирнов, supra Константин Смирнов, Как Россuя бу∂ем всmуnаmъ в ВТО, Коммерсант (24 апрелϑ 2002) note 83.
The fertilizer industry enjoyed some benefits in this respect in the past, however the Order of the Federal Energy Commission No. 12/1 of March 24, 1999, which granted a fifty percent reduction in gas prices to producers of chemical fertilizers, was repealed.
See the interview with the Minister of Economic Development and Trade of Russia, German Gref, Коммерсант (October 28, 2002).
Константин Смирнов, supra Константин Смирнов, Как Россия бу∂ем всmуnаmъ в ВТО, Коммерсант (24 апелϑ 2002) note 83.
Behr and Jack, supra Rafael Behr, Andrew Jack, Russian Talks on WTO Entry Stall Over Energy, Financial Times (February 18, 2003) note 114. See also Константин Смирнов, Евросоюэ нанес Россuu у∂ар nоƨаэ, Коммерсант (10 февраля 2003).
Кирилл Пальшин, Чисmая энерƨuя: ∂аэ u свеm осmануmся внуmреннuм ∂елом Росс uu, Иэвестия (9 апреля 2002).
Id.
Константин Смирнов, supra Константин Смирнов, Как Россия бу∂ем всmуnаmъ в ВТО, Коммерсант (24 апелϑ 2002) note 83.
Алена Корнышева, Мuхаuл Касьянов ∂ал ƨаранmuu россuŭскuм эксnорmерам, Коммерсант (23 июля 2003).
Information agency АК&M (May 17, 2002).
Смирнов, Корныщева, supra note 117.
The OECD report states in this respect: “The Russian government has come to recognize the existence of serious problems in the gas and electrical power sectors of the economy, and the unsustainability of current trends. Subsidization through cheap energy has encouraged inefficient and wasteful energy consumption. Both the gas and electricity sectors are in need of large fixed investment to continue or expand their current operation, while the burden of administering and financing implicit subsidies has seriously complicated the efforts to accumulate internal or external capital for this purpose.” See OECD, supra note 115, at 106.
See Екатерина Кравченко, Мuллер nобебuл Грефа, Финансовые Иэвестия (25 июня 2003).
Смирнов, supra Константин Смирнов, Как Россuя бу∂еm всmуnаmъ в ВТО, Коммерсант (24 апреля 2002) note 83. See also Press Release of the Russian Ministry on the Economic Development and Trade regarding the discussion of the government’s energy reform (June 19, 2003) at http://www.economy.gov.ru/merit/preliz 190603.html (visited November 14, 2003). More detailed information on the reform of the electricity sector in Russia is available at http://www.economy.gov.ru/merit/onelect.html (visited November 14, 2003) and http://www.rao-ees.ru/en/reform (visited November 14, 2003).
Ксения Нечаева, Минэкономраэвumия высmупuло эа свобобу на энерƨорынке, Коммерсант (8 мая 2003).
Starting January 1, 2004, the wholesale prices for electricity will be increased by 20%. See Алена Корныщева, Пре∂се∂аmель правumельсmва вэял по∂ жсесmкuŭ конmроль mарифы есmесmвенных монополиuŭ, Коммерсант (30 мая 2003).
Michalopoulos, supra Constantine Michalopoulos, The Integration of Transition Economies into the World Trading System, The World Bank, Policy Research Working Paper Number (September 1999) note 67, at 31.
Id.
Institutional changes are not limited to the adoption of the newlaws. For transitional economies they often involve the establishment of new administrative capacities and substantial changes in technologies and new investment. See Zdenek Drabek, Marc Bacchetta, Effects of WTO Accession on Policy-Making in Sovereign States: Preliminary Lessons From the Recent Experience of Transition Countries, WTO Staff Working Paper DERD-2002-02 (April 2002), at 24.
See Russian Federal Government Decree No. 1054 (August 8, 2001).
Naray, supraPeter Naray, Russia and the World Trade Organization (2000) note 3, at 100.
Id. at 104.
Таможенный кодекс Российской Федерации от 28 мая 2003 г. N 61-Фз (Customs Code of the Russian Federation No. 61-FZ (May 28, 2003)).
The Customs Code will enter into effect January 1, 2004.
Naray, supraPeter Naray, Russia and the World Trade Organization (2000) note 3, at 108. The laws and regulations governing the establishment of foreign companies in Russian territory, including the issuance of activity licenses, should not restrict imports in violation of the prohibition of quantitative restrictions under Article XI of GATT. Such regulations must not discriminate against imported goods in violation of Article III of GATT. Finally, the charges and registration fees that companies have to pay should be limited to the cost of services rendered.
Federal Law No. 128-FZ On Licensing of Certain Types of Activity (August 8, 2001), Article 17.
Federal Law No. 86-FZ On Medicines (June 22, 1998, as amended January 2, 2000, December 30, 2001, January 10 and June 30, 2003), Article 20.
Id. Article 21.4.
The American Chamber of Commerce in Russia has prepared a report that identifies where existing laws or practices impede trade and restrict market access. This report is a contribution to the Russian American Business Dialogue, initiated by presidents Bush and Putin in 2001. See Healthcare Committee of the American Chamber of Commerce in Russia, Administrative and Regulatory Barriers in the Russian Healthcare Sector (April 2, 2002) available at http://www.amcham.ru/upload/healthcare.pdf (visited November 14, 2003).
See Ministry of Health of Russia, The Rules for Registration of Medicines No. 01/29-14 (December 1, 1998, as amended February 23, 2000), Article 13. On governmental control in pharmaceutical sector see Топорков А.А. Госу∂aрсmвенный конmроль в сфере обрaбенuя мебuбuнскuх uЗбелuй: ƨосу∂aрсmвеннaя реƨuсmрaбuя, at http://www.farosplus.ru/index.htm?/fp/fp_6_20/aipm_6_20.htm (visited November 14, 2003).
Administrative and Regulatory Barriers in the Russian Healthcare Sector, supra note 159, at 7.
WTO, Accession of the Russian Federation—Additional Questions and Replies, WT/ACC/RUS/23 (December 2, 1997), at 19 and 27.
WT/ACC/RUS/23, supra note 162, at 33. See SPS Agreement, Article 3.3.
Id.; see SPS Agreement, Article 2.3.
WT/ACC/RUS/23, supra note 162, at 26.
Berne Convention for the Protection of Literary and Artistic Works (September 9, 1886); Paris Convention for the Protection of Industrial Property (March 20, 1883); the International Convention for the Protection of Performers, Producers of Phonograms and Broadcasting Organizations, Rome, (October 26, 1961). Seehttp://www.wipo.org/treaties/ip/index.html (visited November 14, 2003).
Treaty on Intellectual Property in Respect of Integrated Circuits, done at Washington, D.C. (May 26, 1989).
International Intellectual Property Alliance, 2003 Special 301 Report—Russian Federation, at 1, http://www.iipa.com/gsp/2003_Feb14_GSP_Russia.pdf (visited November 14, 2003).
Id. at 8.
Id. at 10.
Id. at 8.
Id.
On the role of the state in the transitional economies see Sam Laird, Transitional Economies, Business and the WTO, 22(1) World Competition 171–187 (1999).
Naray, supra Peter Naray, Russia and the World Trade Organization 16 (2000) note 3, at 98.
In the early 1990s exports of energy and raw materials were restrained, first through quotas and licenses and, subsequently, by export taxes. A system of centralized exports was operated through foreign trade organizations. The process of nominating special exporters and granting licenses to export within a quota set by the government lacked transparency. However, export quotas and special exporter lists were abolished in 1995. A system of centralized subsidized imports, aimed at solving Russia’s food deficit, was also put in place. Such centralized imports accounted for forty percent of total imports in 1992. They were abolished in 1995. See Vladimir Drebentsov and Constantine Michalopoulos, State Trading in Russia, in State Trading in the Twenty-First Century 303 (Thomas Cottier and Petros C. Mavroidis eds., 1998); see also WTO, Accession of the Russian Federation, Introductory Note to Questions and Replies to the Memorandum on the Foreign Trade Régime, WT/ACC/RUS/2/Add.2 (June 2, 1995).
Michalopoulos, supra Constantine Michalopoulos, The Integration of Transition Economies into the World Trading System, The World Bank, Policy Research Working Paper Number 2182 (September 1999) note 67, at 28.
Naray, supraPeter Naray, Russia and the World Trade Organization 16 (2000) note 3, at 125.
Иэвестия, Алексaнƨр РяЗaнов: Реформу бaŽовой оmрaслu можно нaчamь в эmом ƨо∂у (9 июня 2003).
Naray, supraPeter Naray, Russia and the World Trade Organization 16 (2000) note 3, at 126.
Id.
WTO, Accession of the Russia Federation—Additional Questions and Replies, WT/ACC/RUS/4 (November 1, 1995).
Annual Report On Development of State Sectors of Economy in the Russian Federation in 2001, Goskomstat.
U.S. Department of Commerce, Press Release (June 6, 2002).
Интерфaкс, ЕвросоюŽ окончamельно nрuЗнaл Россuю сmрaной с рыночной экономuкой (10 ноября 2002).
See Alexander Polouektov, Non-Market Economy Issues in the WTO Anti-dumping Law and Accession Negotiations. Revival of a Two-tier Membership? 37(1) Journal of World Trade 1 (2002).
See Protocol on the Accession of the People’s Republic of China, WT/MIN(01)/3.
Moscow Times, U.S. Grants Russia Market Economy Status (June 7, 2002).
Agreement Establishing Free Trade Area between Azerbaijan, Armenia, Belarus, Georgia, Kazakhstan, Kyrgyz Republic, Moldova, Russia and Tajikistan, Turkmenistan, Uzbekistan and Ukraine (April 15, 1994, with amendments of February 26, 1999). The text of the Agreement is available in Russian at http://www.wto.ru/ru/content/documents/sogl/7zst.doc (visited November 14, 2003).
Agreement on Customs Union and Common Economic Space, between Belarus, Kazakhstan, Kyrgyz Republic, Russia and Tajikistan (February 26, 1999). The text of the Agreement is available in Russian at http://www.wto.ru/ru/content/documents/sogl/6custom.doc (visited November 14, 2003).
Agreement Establishing Eurasian Economic Community between Belarus, Kazakhstan, Kyrgyz Republic, Russia and Tajikistan (October 10, 2000). The text of the Agreement is available in Russian at http://www.wto.ru/ru/content/documents/sogl/5rus-evr.doc (visited November 14, 2003).
Naray, supraPeter Naray, Russia and the World Trade Organization 16 (2000) note 3, at 143. See WTO, Protocol of Accession of the Kyrgyz Republic to the Marrakesh Agreement Establishing the World Trade Organization, WT/ACC/KGZ/29 (October 23, 1998).
Economic Consequences of Accession of Russia to the WTO for the National Economy 8, Russian Investment Council & Academy of Science of Russia (2002).
Id. at 8.
The MFN treatment extended by the United States to the Kyrgyz Republic after its accession to WTO remained contingent on the Jackson-Vanik amendment. This was possible due to invocation by the United States of Article XIII of the Marrakesh Agreement. See Drabek and Bacchetta, supra Zdenek Drabek, Marc Bacchetta, Effects of WTO Accession on Policy-Making in Sovereign States: Preliminary Lessons From the Recent Experience of Transition Countries, WTO Staff Working Paper DERD-2002-02 (April 2002) note 146, at 14.
Информaционное бю ро по присоединению России к Всемирной Торговой Оргaниэaции, Информaционный бюллетень №4 Россuя нa nуmu в ВТО (мaрт-aпрель 2002).
Economic Consequences of Accession of Russia to The WTO for the National Economy, supra note 207, at 9.
The average age of Russian industrial plants and equipment was 16 years in 1998. Bush, supra note 21, at 8.
FDI in Russia between 1991 and April 2002 was approximately US$17.2 billion, compared with over $350 billion in China. FDI in Russia in 2000 was approximately $4.4 billion out of global FDI of $1,270 billion. In 2001 FDI in Russia declined to $4 billion and in first half of 2002 to $1.9 billion. Bush, supra note 21, at 6.
Joel Bergsman, Harry Broadman and Vladimir Drebentsov, Improving Russia’s Foreign Direct Investment Policy, in Russian Trade Policy: Reform for WTO Accession (Harry Broadman ed. 1999), at 67–68.
Bergsman, Broadman and Drebentsov, supra Joel Bergsman, Harry Broadman and Vladimir Drebentsov, Improving Russia’s Foreign Direct Investment Policy, in Russian Trade Policy: Reform for WTO Accession (Harry Broadman ed. 1999) note 217, at 65, 67.
Drabek notes that “the modest amounts of foreign investments in the Central and Eastern European region are generally attributed to the lack of credibility of trade and investment policies”. Zdenek Drabek, The Stability of Trade Policy in the Countries in Transition and Their Integration in the Multilateral Trading System, 19(6) World Economy 721, 734 (1996).
David Tarr, How To Use Accession to the WTO For Economic Development, Materials of the Seminar organized by the World Bank Institute and the Russian Foreign Trade Academy, Moscow (June 26–30, 2000), at 2.
Id. at 2.
См. Биржa, Нuжнuй Новƨ оро∂: Чеƨо хоmяm кресmьяне? (28 мaя 2002).
Studies show that only 25 percent of producers are now competitive in the domestic market, and that only ten percent are ready for accession. See Economic Consequences of Accession of Russia to the WTO for the National Economy, supra note 207, at 11.
For discussion on effects of the WTO accession of transitional economies on their customs revenues, see Drabek and Bacchetta, supra Zdenek Drabek, Marc Bacchetta, Effects of WTO Accession on Policy-Making in Sovereign States: Preliminary Lessons From the Recent Experience of Transition Countries, WTO Staff Working Paper DERD-2002-02 (April 2002) note 146, at 19.
See Agreement on Partnership and Cooperation, supra note 100.
For detailed discussion of the opposition campaign of 2001, see Igor Bunin, Russia’s Accession to WTO: Domestic Policy Aspects, Materials of the 3 rd International Business Summit of the Commonwealth of Independent States “Doing Business in the Cis-Implications of WTO Accessionr”, Evian, France, (September 30–October 2, 2002), at 39.
Selivanova, supra Julia Selivanova, Russia’s Accession to the WTO: Multilateral and Domestic Policy Considerations, 7(2) Bridges (March 2003) note 20, at 20.
Id. See Part II(B.1) and supra note 43.
See Тимур Хикмaтов, Зaшuma с воэ∂ухa: aвuaсmроumелu соэ∂aлu орƨaнuэaцuю-лоббuсma, Иэвестия (21 aвгустa 2002).
Michaels, Chazan and Coleman, supra Daniel Michaels, Guy Chazan and Zach Coleman, Moscow Pockets Millions In Fees to Fly Over Siberia, Wall Street Journal (July 1, 2002) note 108.
Денис Демьянов, Анбрей Кaэьмuн оценuвaеm всmуnленuе в ВТО, Время МН (20 июня 2002).
Id.
Information Agency RIA-Novosti, RosBusiness Consulting, Russian Banking Community Signaled Support of Accession of the Country to the WTO (February 19, 2002).
The European Business Club insists on a thirty percent quota for foreign ownership after accession, a fifty percent limitation in five years, and a seventy percent limitation in seven years. See Information Agency RIA-Novosti, supra note 239.
Economic Consequences of Accession of Russia to the Wto for the National Economy, supra note 207, at 65.
See Роксaнa Ахмедовa, Инострaнƨaм оmкроюm сmрaхово∂ рынок только в 2007 ƨо∂у, Время МН (20 июня 2003).
Гaлинa Бaэинa, Zaшumу российскоƨо секторa сmрaховых услуƨ нa∂о uскamь в прaвuлaх ВТО—maкое мненuе комnaнuй с совмесmным кanumaлом не рaэ∂еляеm больщaя чaсmь рынкa, Стрaнa.Pу, (15 янвaря 2002).
Id.
Id.
See Иэвестия, Повыщенuе maможенных nощлuн. Зana∂ные мебельшuкu ухобяm в лесa (1 ноября 2002).
See Алексaндр Грищин, Еленa Виногрaдовa, Мебельщuкu боятся IКЕА. Онu лоббuруюm nовыщенuе nощлuн, Ведомости (4 октября 2002).
Selivanova, supra note 20.
Economic Consequences of Accession of Russia to the WTO for the National Economy, supra note 207, at 11. In 2001, the Ministry of Economic Development had over 260 discussions on the status of Russia’s negotiations with numerous unions and producer associations. The Ministry for Economic Development and Trade has organized conferences with the participation of the Committee for Economic Policy and Entrepreneurship of the State Duma, Russian Union of Industrialists and Entrepreneurs, and other organizations. Starting from July 2001, a series of regional conferences “Russia, the WTO, and Interests of the Russian Business Community” have been held in more than twenty Russian cities.
Economic Consequences of Accession of Russia to the WTO for the National Economy, supra note 207. The study is available in Russian on the website of the Russian Investment Council at http://www.rnic.ru/analitics.php (visited November 14, 2003). See also A. Daniltsev et al., Evaluation of Social And Economic Consequences of Russia’s Accession to the WTO available in Russian at http://www.wto.ru/ru/content/documents/docs/StudyD.doc (visited November 14, 2003).
Id. at 13.
Id. at 8.
See Kushnirenko supra A.K. Kushnirenko, Tariff Negotiations of Russia with WTO, Information Bulletin Russia on the Way to WTO, No. 3 (January–February 2002) note 39, at 2.
Economic Consequences of Accession of Russia to the WTO for the National Economy, supra note 207, at 8.
The study took as its basis the level of tariffs proposed by Russia in its third goods offer in 2001.
Economic Consequences of Accession of Russia to the WTO for the National Economy, supra note 207, at 9.
Id.
Id. at 8.
SeeEconomic Consequences of Accession of Russia to the WTO for the National Economy, supra note 207, at 61.
Id. at 9.
Naray, supraPeter Naray, Russia and the World Trade Organization 16 (2000) note 3, at 132.
Economic Consequences of Accession of Russia to the WTO for the National Economy, supra note 207, at 39.
See Бйржа, supra См. Биржa, Нuжнuй Новƨ ороƨ: Че∂о хоmяm кресmьяне? (28 мaя 2002) note 222.
Id. On the launch of the TACIS program aimed at harmonising Russia’s technical standards with EU standards see Регйоны.Ру, Рqoссuя сблuзum mехнuческuе сmaнбaрmы с ЕС (3 июля 2003), at http://www.wto.ru/ru/news.asp?msg id=5392 (visited November 14, 2003).
Economic Consequences of Accession of Russia to the WTO for the National Economy, supra note 207, at 39.
Екатерина Любавина, Уроссuŭскuх мебелыuuков nоявuлaсь u∂ея, Коммерсaнт (30 aвгустa 2002).
Economic Consequences of Accession of Russia to the WTO for the National Economy, supra note 207, p. 39.
Id.
Id.
General Motors and Ford consider Russia one of most promising markets along with China, Brazil, South Korea, India, Mexico, Poland and Thailand (Финансовые извесстия, Россuю nрuзнaлu о∂нuм uз сaмых nерсnекмuвных aвморынков (18 МАРТА 2003).
Alexander Gordeev, Interviewwith German Gref, Russia’s Minister of Economic Development and Trade, Vedomosti (July 22, 2003).
Selivanova, supra Julia Selivanova: Will WTO Provide Added Thrust for Russian Aviation? 10(53) AmCham News (May–June 2003) note 60, at 9.
Id. (based on personal interviews with Moscow-based aviation analysts).
SeeАлексей Никольский, Вла∂uмuр Нuкumuн: А с кaкоŭ сmamu nеревозчuкu ∂олжны nомоƨamь aвuanрому?Ведомости (9 ИЮНЯ 2003).
Economic Consequences of Accession of Russia to the WTO for the National Economy, supra note 207, at 74.
Id. at 72.
Id.
Id. at 75.
Id. at 61.
Smith, supra Murray Smith, Russia and the General Agreement on Trade in Services, in Russian Trade Policy: Reform for WTO Accession 31,37 (Harry Broadman, ed. 1999) note 26, at 48.
Id.
Drabek, supra Zdenek Drabek, The Stability of Trade Policy in the Countries in Transition and Their Integration in the Multilateral Trading System, 19(6) World Economy 721, 734 (1996) note 219, at 723.
Id.
Naray, supraPeter Naray, Russia and the World Trade Organization 16 (2000) note 3, at 140.
Smith, supra Murray Smith, Russia and the General Agreement on Trade in Services, in Russian Trade Policy: Reform for WTO Accession 31,37 (Harry Broadman, ed. 1999) note 26, at 32.
Economic Consequences of Accession of Russia to the WTO for the National Economy, supra note 207, at 62.
Smith, supra Murray Smith, Russia and the General Agreement on Trade in Services, in Russian Trade Policy: Reform for WTO Accession 31,37 (Harry Broadman, ed. 1999) note 26, at 32.
Id. at 41. This is valid for retail stores and restaurants.
Id. These sectors include financial services and telecommunications.
Daniltsev et al., supra A. Daniltsev et al., Evaluation of Social And Economic Consequences of Russia’s Accession to the WTO note 252, at 7.
Id.
Smith, supra Murray Smith, Russia and the General Agreement on Trade in Services, in Russian Trade Policy: Reform for WTO Accession 31,37 (Harry Broadman, ed. 1999) note 26, at 44.
Smith, supra Murray Smith, Russia and the General Agreement on Trade in Services, in Russian Trade Policy: Reform for WTO Accession 31,37 (Harry Broadman, ed. 1999) note 26, at 44.
According to its bilateral agreement with theEU(Agreement on Partnership and Cooperation Establishing a Partnership Between the European Communities and the Russian Federation, supra note 100, Annex 7(A)), Russia has granted national treatment to subsidiaries (with up to 100 percent foreign participation) of European banks. Despite this factor, the presence of foreign capital in the market has remained quite limited compared to most countries in Eastern and Central Europe. For instance, in Moscow the share of foreign banks in operations with physical persons is twelve percent, and their share in corporate loans is fifteen percent. These rates may be due to the high risks and unpredictability of the political and economic situation. See Economic Consequences of Accession of Russia to the WTO for the National Economy, supra note 207, at 64.
Олег Вьугин, Зaшишaться нaдо с умом, ВBремя МН (10 aпреля 2002).
Economic Consequences of Accession of Russia to the WTO for the National Economy, supra note 207, at 65.
Id. at 64.
Id. at 66.
Игорь Томберг, Сmрaховaнuе: лuберaлuзauuя неuзбежнa u желamельнa, Politcom.Ru (31 июля 2002).
Олег Вьюгин, supra note 300.
ОЛЕГ ВьЮГИН, Зauuma ∂ля фuнaнсuсuсmов? Ведомости (11 мaртa 2002).
Economic Consequences of Accession of Russia to the WTO for the National Economy, supra note 207, at 69.
Id.
Id. at 67.
Id.
Id. at 68.
Id.
Id. at 69.
Ёрлен Берщтейн, Безрaбоmuua, Время МН (22 aВгустa 2002).
ИТАР-ТАСС, Россuuскuŭ nремьер-мuнuсmр выскaзывaеmся зa членсmво в ВТО с оnределеннымu о∂оворкaмu (25 мaртa 2002).
Эрлен Берщтейн, supra note 315.
Id.
Michalopoulos, supra Constantine Michalopoulos, The Integration of Transition Economies into the World Trading System, The World Bank, Policy Research Working Paper Number 2182 (September 1999) note 67, at 26.
Id.
Id. at 27.
Id. at 32.
Discussions on the accession process were held on a number of occasions, for instance, at the Ministerial Conferences in Singapore in 1996, in Geneva in 1998 and in the General Council on December 10, 1998. The positions of Members on terms of accession differ. Some Members indicate that Article XII placed no limits on the terms, which were to be developed through negotiations with current Members. Many Members say that the accession of new governments should strengthen the system, not weaken it, and that acceding governments must demonstrate their willingness to comply fully with the WTO rules upon accession. Interestingly, some speakers stressed that acceding governments should not be asked to undertake more stringent obligations than present WTO Members (so-called “WTO-plus” obligations) as it would be an abuse of economic power. See WT/ACC/7, supra note 25.
During the meeting of the General Council on December 10, 1998 it was generally recognized that “the balance in each accession was to accommodate the special situation of the acceding government on the one hand, and to maintain the credibility of the WTO system on the other”. See WT/ACC/7, supra note 25., at 5.
Naray, supraPeter Naray, Russia and the World Trade Organization 16 (2000) note 3 at 149, 107 and 150. See also Drabek, supra note 219, at 743.
Selivanova, supra Julia Selivanova, Russia’s Accession to the WTO: Multilateral and Domestic Policy Considerations, 7(2) Bridges (March 2003) note 20. See Игорь Томберг, Россuя u ВТО: рuскu нaкaнуне выборов, http://www.politcom.ru/2003/analit28.php (visited November 14, 2003).
Michalopoulos, supra Constantine Michalopoulos, The Integration of Transition Economies into the World Trading System, The World Bank, Policy Research Working Paper Number 2182 (September 1999) note 67, at 34.
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2005 Springer Science+Business Media, Inc.
About this chapter
Cite this chapter
Selivanova, J. (2005). Russia. In: Macrory, P.F.J., Appleton, A.E., Plummer, M.G. (eds) The World Trade Organization: Legal, Economic and Political Analysis. Springer, Boston, MA. https://doi.org/10.1007/0-387-22688-5_77
Download citation
DOI: https://doi.org/10.1007/0-387-22688-5_77
Publisher Name: Springer, Boston, MA
Print ISBN: 978-0-387-22685-9
Online ISBN: 978-0-387-22688-0
eBook Packages: Humanities, Social Sciences and LawLaw and Criminology (R0)