| |
| |
|
Politics Information |
|
|
|
Protectionism in Russia
The new law "Special Protective, Antidumping and Import Compensatory Measures" differs from the old one by the fact that it fully complies with the WTO (World Trade Organization) standards. It is for the first time in the Russian practice that a law describes in detail what is necessary to do in order to protect the Russian market and how to do it. As its authors promised, the Law has turned out to be extremely concrete: it is conceived so that the officials as well as the participants of trade agreements will be able to find straight answers to their questions, and they should not search for any special "explanations" and "commentaries". The law provides a listing of basic concepts. Not everyone in Russia, even among lawyers, will be able to tell straight off what "dumping leverage" is, and what "dumping import" is. For the majority of people it becomes a revelation, that "dumping" is not the sale of foreign goods in Russia at lower prices than similar local products cost (that's what for some reason most people think) but the sale of a product cheaper, than local production costs. A number of base concepts comprise such, as "the material loss of an industry" (what to understand in general under the term "damage") and "serious damage " (how to calculate it), and in general a lot of other things, which are clear "in general", but very artful when officials start to build a state policy, based on the intuitive understanding of such terms. For example, the Law provides the description of the investigation concept, which should precede the introduction of all protective measures against "bad" foreign goods. The Law states, that the body responsible for investigation, is appointed by the decision of the Government of the Russian Federation, and defines concrete timeframe, both for the investigation, and for implementation of its results (the measures, taken according to investigation results should be approved by the Government not later than 14 days after they are exposed). In case of a highly critical situation such measures need to be introduced extremely rapidly, as the Government can practically instantly introduce a special tax (protective import tax) on the goods that cause damage to the economy. Should it be found out later, that this tax is excessively heavy; the foreign trade participants will have the right to be reimbursed for the actual incurred losses. Such import tax cannot be effective for more than 200 days. The Law describes in detail how to establish the degree of damage to the Russian economy from "bad" import. Special protective measures have to be implemented in order to protect the economy, the Law clearly defines, what those are and in what case they should be used, for how long and what is the order of their review. The main idea behind this is that such protective measures should be lifted, as soon as they fulfill their purpose. It is important not to go too far with those measures, otherwise the market protection may cause more harm than good, creating with the domestic manufacturer a sensation of absence of competition, that the buyers will be the first ones to feel. A separate chapter of the Law is dedicated to antidumping measures. Discovering the fact of goods dumping in Russia, calculating the damage and introducing protective measures - each step is exposed in every detail, because this is a new practice for this country. Here, as well as in the case of application of special protective measures may be, the lawgiver requires that the facts should be carefully investigated, as it is possible that blind measures can do more harm than good. If dumping influence does not exceed a certain allowable threshold, strict measures should not be used. Moreover, if the supplier of the goods states in writing that he followed a dishonest price policy, and signs an obligation to stop it, the investigation is then suspended, should the "inspectors" make the decision, that the supplier can be trusted. However, tight control is carried out to verify how he complies with the promise. The Law introduces the concept of "compensatory measure" which is necessary in case when the goods, produced with the subsidies of the foreign governments are imported into Russia. In the reality however, as it has been already noticed by the experts, it is firstly the foodstuffs: the crisis of overproduction of agrarian and industrial complex, the aspiration to support quiet lifestyle of local farmers cause the foreign governments to buy from manufacturers of agrarian and industrial complex the goods at unfairly high prices, and then resell them for export at lower prices, compensating the difference from the budget. The demands of domestic manufacturers of agrarian and industrial complex "to forbid" such imports was faced with fears, that the sharp interdiction of imports will not cause the growth of own production and will result only in shortages and price increases. The Law has defined the "golden balance": the investigation concerning the subsidized import is conducted extremely objectively, abstracting from lobbyism of domestic manufacturers. The document is extremely transparent, as it could not be any different. The attempts to declare a "trade war" to Russia when its goods are exported to some countries, on one hand, as well as obvious practice of "bad import" to our country from which we were not protected, on another hand, have forced Russia to use protective measures (on import of fowl, beef, pork) before the adoption of this law. It caused an ambiguous and sometimes extremely strong reaction in the outside world. The reaction of Russia's supporters during the WTO negotiations was especially painful. There was not a single country at this stage of joining the WTO who dared strengthening its protective measures. Russia has invested a great deal of efforts to prove, that it had the right to protect the market, and has spent a lot of time to explain to foreign experts, how its market was going to be protected. Copyright 2005 OpenRussia.ru Russian business directory
MORE RESOURCES:
Politics - Google News |
|
|
|
RELATED ARTICLES
Protectionism in Russia The new law "Special Protective, Antidumping and Import Compensatory Measures" differs from the old one by the fact that it fully complies with the WTO (World Trade Organization) standards. It is for the first time in the Russian practice that a law describes in detail what is necessary to do in order to protect the Russian market and how to do it. People Say - and Do - the Dumbest Things When Pennsylvania Senator Arlen Spector exercised his right to free speech last week, he prompted a quick response from Robert Bork. Known for being the first Supreme Court Justice nominee to be, well, "borked," the judge was in no mood for Spector's silliness. Business: "Where Is America Headed To?", New York Millionaire Wonders Hello! Happy new year. May you live a long healthy life and prosper. Doorstops and Paperweights Ted Stevens (R-Alaska), chairman of the Senate Commerce Committee, has come up with what he believes is a brilliant idea. He thinks the FCC should have to the power to hold cable and satellite channels to the same decency standards as over-the-air broadcasters. Military Intelligence, FBI, CIA Intelligence Problems Well many have complained that the FBI and CIA dropped the ball in the 9-11 attacks. But I submit to you that the days of Paul and the "One if by land, two if by sea" and the Trojan Horse Story are not the only possible attacks methods of operindi available these days. How Futuristic Is Anarchy As A Way To Organize The State (II) Any chances for a country to be ruled by alternative rule will always be zero because -as many economists, philosophers and scientists claim- the way the various parts reality consist of interrelate is dominated by forces we won't in a billion years have any chance of controling. An anarchist with aspirations to help build organizational structures not based on governing from above's best bet is to get a clear picture of those areas of science that are leading the way in terms of future progress. Abu Ghraib: Our Surprise is the only Surprise As pictures and videos surface showing young American soldiers humiliating and dehumanizing Iraqi prisoners, we, as a society, recoil in disgust and disbelief. Friends and family of those charged with such crimes, shake their heads in bewilderment and assure the world that the perpetrators are normal, caring, loving individuals without any prior sadistic or bullying traits. Toll Ways Hurt The Flow of Transportation The United States has never done a full study on the economic losses caused by the toll ways, which impede our daily lives and the flow of our transportation. Transportation is vital to the health of a nation, its GDP and the flow of commerce and trade. The Mother of All Political Battles Has Begun! News is spreading of the retirement of Supreme Court Justice Sandra Day O'Connor, setting up a political battle the likes never before seen. This is the first of what could be several openings in the not too distant future. Prison Abuses on Good Muslims Well we have certainly been reading a lot about prison abuses. Many of us in the Western World are completely outraged at the media leak of the photos at Abu-ghareeb. The FTC Purports and Misrepresents Their Law Enforcement Experience as It Attacks Business We should all give much kudos to the Federal Trade Commission. We sincerely compliment you on your misdirection, smoke screams and use of self-aggrandizement to further justify the on-going ability to govern, lead, legislate, regulate, and enforce law in the franchising industry. John Roberts - Supreme Court Nominee President Bush's selection of the Hon. John Roberts is an interesting choice. Governments Worst Agency Everyone knows the United States Government often falls down in their duties. Although over all the country is great and for the most part seems to work, there are several agencies that get an "F" on their report cards from some who act as government watchdogs. Reelect President Bush for the 2nd term: Evidence & Proofs Why President Bush should have his second term? The arguments can be drawn from Gas price, Job creation and War in Iraq scientifically. If it is scientific, it must observe the same result, test in the same experiment and constitute a mathematical truth. Public Utilities, Monopolies and Problematic Structures Public utilities and a problematic issue on the allowance of profits. We all know that if you are only allowed to make 15 percent profit as in the case of Utilities Companies then why not spend more money so you can make 15 percent go up. World Moving from Socialism to Capitalism The recent Jakarta summit of Asia and Africa brought remembrance of Jawaharlal Nerhru. At Bandung, Nehru had initiated the non - alignment movement and proclaiming the resistance to the big powers for exploiting the underdeveloped countries for the economic benefits. Hitler - Bush Hitler received a legacy from his Rothschild relations in Vienna where he and his father before him had studied. The De Medicis agent named St. Asking For Proof in the Economic Pudding There are no stupid questions, only stupid people. Ask an economist for proof of one of their pet theories and you'll find quickly that the age old axiom that we all learned in school and work place training seminars is dead wrong. Hillary Says Health Care Can Be Fixed with IT The great leader and Senator from New York and wife of a former President cares about America and says that Health Care can be fixed with IT? Yes, perhaps that will help with accountability of the taxpayers wasted dollars in Health Care indeed. But how will that help the quality of Health Care?What I find interesting is that President Bush a couple of years ago said that he believed that the HIPPA Legislation would be able to be handled by entrepreneurial problem solvers through IT. How Can We Prevent Black Outs and Protect the Grid? The idea is to have all the important items with minimal back-up systems while things are restored. There are so many ideas we have not explored and should explore.
|
| home | site map |
| © 2006 |
