Russian experts need to look at WTO practice more closely

23 october 2014

Roundtable “State support for Russian exporters: financial and non-financial tools and development prospects” took place at the Analytical Center. The experts have discussed state export support within WTO and OECD membership, as well as the foreign experience in this field.

At the beginning of the roundtable experts have analyzed WTO state export support financing use violation cases. “Forbidden measures use action proceedings cases show that disputes appear in sectors which cannot enter large-scale competitive production”, said the Head of the Directorate for WTO Policies of the Analytical Center Inna Dudykina. “Among these sectors there are car and civil aircraft manufactures”. For the sake of successful development of these sectors, access to foreign markets should be provided, and that is the subject for state aid, said the expert. Time for cases’ consideration (1.5 year) members of WTO use to back exporters up in outer markets or to master new sectors of global market of industrial products, thinks the experts. “The result of action proceedings is dissolution of state programs, which interferes with principles and rules of WTO”, said Ms. Dudykina. “Countervailing measures make the losing side decline the future use of forbidden expert subsidy”. Russian experts need to look at WTO litigation practice more closely, considers Ms. Dudykina.

The Head of the Autonomous Non-Commercial Organization “Foreign Trade Activity Information Analysis Center” of the The Ministry of Industry and Trade of the Russian Federation Roman Lyadov thinks that Russian non-financial export aid is disparate and does not answer current requirements. “If we speak about SMEs, we can divide all obstacles into informational and administrative”, said the expert. Informational obstacles are: lack of information about foreign markets, low awareness of state aid tools and progress in lawmaking. Administrative obstacles are: license application and acquisition, customs procedures, technical regulations and VAT recovery.

The Head of the Department for International Cooperation of the Ananlytical Center Denis Ershov talked about German, Chinese and the US distinctions of export aids national frameworks. “We analyzed foreign practices and concluded that Russian export aid national framework needs improvements on the basis of integrated export infrastructure creation, which will include all aids for Russian exporters backing and for their competitive growth on foreign markets”, said the expert.

Non-financial export tools still require financial backing, experts marked during the roundtable. However, while foreign governments finance research work and such happenings, Russian exporters have to sponsor such work at their own expense.