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Conference « Russia’s accession to the WTO – business
opportunities »
2 February 2012, Riga, Latvia
Benjamin Musall, Policy Co-ordinator
European Commission – Directorate-General Trade
General overview on changes
concerning industrial products,
notably in the field of technical
regulations
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Outline
1) Russia’s multilateral and bilateral WTO commitments
with a view to industrial products
2) Specific WTO commitments of Russia as regards
technical regulations (TR)
3) Development of TR in Russia, including at the level of
the Customs Union (CU) and the Eurasian Economic
Community (EurAsEC)
4) Conclusions
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1) Russia’s multilateral and bilateral
WTO commitments with a view to
industrial products
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Important multilateral commitments of Russia
– import duties on industrial products
• Import duties on industrial products will go down from 9,5% to 7,3% on average
• For some products the decrease in import duties is
important and immediate (trucks and light
commercial vehicles from 25% to 10% immediately)
• For some products the decrease in import duties is
important but over a transition period (cars from
30% to 15% over 7 years)
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Important multilateral commitments of
Russia – export duties
• Bound rates for export duties of products covered by the Annex to part V of Russia’s schedule of Commitments in the WTO
• Products not covered by the Annex are covered by the bilateral agreement on raw materials
• For instance the export duties on scrap will go significantly down (from 15% to 5% over 5 years for ferrous scrap; from 50% to 10% for copper and aluminum scrap)
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Russia WTO accession – bilateral
agreements (1)
Agreement on trade in components of motor vehicles
• Scope: components for cars and light commercial vehicles
• Main purpose: ensure that the level of export of car components from the EU of 2010 is maintained
• Main characteristics: duty free import quota for
components in case the level of export goes beyond
2010 level
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Russia WTO accession – bilateral
agreements (2)
Agreement on Tariff Rate Quotas (TRQs) for wood
• Scope: wood products mentioned in the Annex to part V of Russia’s schedule of Commitments in the WTO (spruce, pine)
• Main purpose: ensure that a defined quantity (quota) of these products can be exported to the EU with lower export duties
• Main characteristics: the EU will manage the distribution of the quota on the basis of a traditional importers/newcomers scheme
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Russia WTO accession – bilateral
agreements (3)
Agreement on raw materials
• Scope: list of raw materials not mentioned in
Russia’s schedule of Commitments in the WTO (export duties)
• Main purpose: ensure that where Russia has no commitments on bound rate the EU is duly consulted in case Russia intends to increase export duties
• Main characteristics: the EU will be consulted at least 2 months prior to the increase of export duties
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2) Specific WTO commitments of
Russia as regards TR
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Working Party Report (WPR)
• Working Party on the Accession of the Russian Federation delivered its Report on 17 November 2011
• Russian commitments on TR summarized in chapter on « Technical Barriers to Trade », Para. 699-813
• Key commitment (cf. Para. 813 of the WPR): Russia confirmed that from the date of accession all laws, regulations, and other measures within the scope of the WTO TBT-Agreement, such as TR, standards, and conformity assessment procedures, applied in the Russian Federation complied with the provisions of the WTO TBT-Agreement
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Key provisions of the WTO TBT-
Agreement (1)
• National treatment/ non-discrimination, Art. 2.1
• Art. 2.2: No creation of unnecessary obstacles to
international trade; for that, TR must not be more
trade-restrictive than necessary to fulfil a legitimate
objective (non-exhaustive list of such legitimate
objectives included, e.g. national security, health and
safety, environment)
• Available scientific and technical information to be
considered in risk-assessment (Art. 2.2)
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Key provisions of the WTO TBT-
Agreement (2)
• No maintenance of TR if circumstances changed,
objectives giving raise to adoption no longer exist or can
be addressed in less trade-restrictive manner, Art. 2.3
• Relevant international standards (or parts of it) to be
used as basis for TR, Art. 2.4
• But: important exception in Art. 2.4: «[…] except when
such international standards or relevant parts would be an
ineffective or inappropriate means for the fulfilment of
the legitimate objectives pursued, for instance because
of fundamental climatic or geographical factors or
fundamental technological problems»
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Key provisions of the WTO TBT-
Agreement (3)
• Transparency: Notification and publication obligations, Art. 2.9-2.11
• Reasonable interval between publication of TR and entry into force, Art. 2.12
• Rules on conformity assessment (CA):
no creation of unnecessary obstacles to international trade (Art. 5.1.2)
Relevant guides or recommendations issued by international standardisation bodies to be used as basis (Art. 5.4)
Widest possible recognition of results of CA of other WTO members, MRA (Mutual Recognition Agreement) conclusion encouraged (cf. Art. 6)
International systems for CA wherever possible (Art. 9)
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Key provisions of the WTO TBT-
Agreement (4)
• TBT enquiry point to be established, which is able
to answer all reasonable enquiries from other WTO
members and interested parties on TR, Art. 10
• WTO-TBT Committee as regular consultation
mechanism (cf. Art. 13)
• Annex 3: Code of Good Practice for the
preparation, adoption and application of standards
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3) Development of TR in Russia,
including at the level of the Customs
Union (CU) and the Eurasian
Economic Community (EurAsEC)
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Division of functions and powers between CU
Commission and national governments
CU Commission
Russian
Federation
Republic of
Kazakhstan
Republic of
Belarus
Supranational Body
- Coordination of actions in the area of
technical regulation
- Adoption of TR’s
- Approval of obligations, explanations
and recommendations
- Approval of standards
- Maintenance of uniformity of
measurements
- Accreditation
- Organization of the conformity
assessment system
- State control (supervision)
- Liability adjustment in the area of
technical regulation
systematic policy
functions and powers
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Russia’s basic approach on TR
• Harmonisation of technical policies and regulatory systems in the area of TR within the established EurAsEC system and by means of intensified cooperation in CU framework
• Goal of harmonisation: uniform requirements for the circulation of goods within the territories of CU parties, realized through common TR using procedures established in conformity with CU or EurAsEC Acts adopted as international agreements or decisions among the participating EurAsEC and CU parties
• CU TR directly applicable, no separate national legislation of CU Parties necessary
• Russia in principle ready to move away from system of pre-market authorisation to a « trust but verify » system via market surveillance
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Main instruments of common
EurAsEC/CU policy on TR
• Harmonisation of national legislation in the area of TR
• Development and adoption of TR of the CU and of EurAsEC stipulating mandatory and binding requirements for goods subject to TR
• Implementation of common procedure on development of TR in territory of each CU and EurAsEC Party
• Harmonisation of standards and implementation of relevant international standards as basis for TR
• Common rules for conformity assessment and accreditation of certification bodies
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Principles of legal framework organisation
in the CU
Customs
UnionEU
CU TR’s
Harmonization/ Unification of standards and conformity
assessment procedures relating to products (regarding the access
of products to the market)
EurAsEC
Important: As a prototype of the CU
technical regulation system under formation
was chosen the scheme of the European
Union
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Procedure for adoption of TR in CU
• Draft TR first developed at national level, using internal procedures, before being proposed to the designated CU or EurAsEC bodies for harmonisation, further review and adoption
• CU Coordination Committee has coordinating role, adoption of TR by CU Commission
• Unified conformity assessment procedures in CU TR
• At EurAsEC level: EurAsEC Integration Committee coordinates, adoption of TR by EurAsEC Interstate Council
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Legal framework for TR in Russia (1)
• Legal framework includes different levels:
- International Agreements of the EurAsEC and of the CU
- Other EurAsEC and CU acts
- Russian national legislation
• Provisions of EurAsEC and CU Agreements and other
EurAsEC and CU acts based on WTO-TBT-Agreement,
TRs only adopted for the purposes specified in the
WTO-TBT-Agreement
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Legal framework for TR in Russia (2)
• At EurAsEC level:
EurAsEC Agreement on Basics of TR Harmonisation (2005)
EurAsEC Agreement on TR Policy Coordination (2008)
Regulation on Development of TRs of EurAsEC, approved by EurAsEC Interstate Council Decision No. 1175, 17 August 2008
• At CU level:
CU Agreement on Uniform TR principles (2010)
CU Commission Decision No. 527 of 28 January 2011, Regulation on Development, Adoption, Amendment and Cancellation of TRs of the CU
CU Agreement on Mandatory Conformity Assessment (2009)
CU Agreement on Mutual Recognition of Accreditation Bodies (2009)
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Development of TRs in CU countries
Russian Federation
Republic of Belarus
Republic of Kazakstan
TR On Safety of Motor Vehicles Emissions is incorporated into TR On Safety of Motor Vehicles
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Current situation of development of TR
in CU
Adopted
Internal Endorcement of the Final Draft
Public discussion finished
Public discussion on going
Not under devlopment
TR On Safety of Motor Vehicles Emissions is incorporated into TR On Safety of Motor VehiclesDevelopment of the TR On Safety of Medical Appliances is ceased
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Adopted TRs of the CU
NAME CU Commission
decision no.
Date coming
into force
1 On Safety of Railroad Rolling Stock 710 June 15 2014
2 On Safety of High Speed Railroad Rolling Stock 710 June 15 2014
3 On Safety of Railroad Infrastructure 710 June 15 2014
4 On Safety of Pyrotechnical Products 770 February 15 2012
5 On Safety of Packaging 769 July 1 2012
6 On Safety of Low Voltage Equipment 768 July 1 2012
7 On Safety of Toys 798 July 1 2012
8 On Safety of Perfume Products 799 July 1 2012
9 On Safety of Products for Children and Juvenile 797 July 1 2012
10 On Safety of Machines and Equipment 823 February 15 2013
11 On Safety of Lifts 824 April 18 2013
12 On Safety of Equipment in Explosive Environment 825 February 15 2013
13 On Requirements for Automotive and Aircraft Gasoline, Diesel and Marine Fuel, Jet
Fuel and Fuel Oil 826
December 31
2012
14 Safety of Automotive Roads 827 February 15 2015
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16,8%
-
- Food products
Transport & fuel
11,1% 48,7%
- Products for children & Juvenile
- Industrial products
- Construction materials
- Chemical products
2,3 %
1,9 %
1 %
- Others
18,2%
Groups of
products
- Adopted TRs
Adoption of CU TRs by sector
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Entry into force of CU TRs
15.02.12
15.02.13
01.07.12 01.07.13
31.12.13 15.02.15
Automobile roads
Wheeled transport
2012 2013 2014 2015
Food
Labeling
Packaging
Oil or butter, fat
Milk
Juices
Meat
Aquatic bioresources
. . .
Products for children and
youngsters
Toys
Perfumery and cosmetics
Textile & clothing
Personal defense products
Pyrotechnics
Gasoline,
diesel, Oil-
fuel
Machinery and equipment
Low-voltage equipment
Electromagnetic compatibility
Fluid fuel
Explosive environment
Pressure vessels
Elevators
Railway
equipment
and railway
infrastructu
re
15.06.14
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Transitional period from national to
uniform CU TRs
Conformity assessment CU TRConformity assessment in
accordance with National
Legislation
Entry into legal force
of Decision of the CU
Commission on
adoption of a CU TR
СBА
Expiration of conformity
assessment documents issued in
accordance with national
legislation
~6 months ~18 months
TOTAL DURATION OF THE TRANSITIONAL PERIOD ~24 MONTHS
Entry into legal
force of a
CU TR
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CU TRs and GOST standards
EurAsEC
CU
CU TRs Conformity assessment
(confirmation)
REGIONAL DOCUMENTS IN THE AREA
OF CIS STANDARDIZATION:
INTERSTATE STANDARDS
INTERSTATE SETS OF RULES
COMMONWEALTH OF INDEPENDENT STATES
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Application of CU TRs by CIS Member States
not belonging to the CU
CUSTOMS UNION
EurAsEC
CIS
TRs
Legal basisExistence of regulations in CU TRs which have direct legal effect
Using interstate GOST standards which are harmonized with international
standards (ISO/IEC) with the aim of conformity assessment
-
-
Application of CU TRs in CIS member-states
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4) Conclusions
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Conclusions (1)
• Russia assures full compliance of TR with WTO commitments, notably under the TBT-Agreement
• European Commission is co-operating with Russia whilst following this critically (in particular as regards compliance with international standards)
• Systemic elements important: Commission welcomes that Russia in principle wants to move away from a system of pre-market authorisation to a « trust but verify » system via market surveillance; implementation in TR to be monitored closely
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Conclusions (2)
• CU TR should not create new barriers to trade given the economic interdependence between Russia and the EU
• EU stands ready with advice via our dialogues and co-operation projects with Russia
• TR in line with WTO framework important for Russia’s economy and its modernisation, notably in these times of economic uncertainty
• In the second half of 2012 after Russia’s WTO accession, first assessment of compliance possible
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Thank you for your attention!
Benjamin Musall
Policy-Co-ordinator
European Commission
DG TRADE
