Export promotion is important direction in state policy for competitive growth of home commodity producers

2 december 2014 | Russian Business Newspaper

When sanctions against Russia were imposed many "fiery" experts suggested Russian withdrawal from WTO in protest, as Russian business would be choked off in foreign markets. Experts of the RF Chamber of Commerce and Industry strongly disagree with that. When Russia is in WTO it can influence over the situation from within. Moreover, before Russia entered WTO, its business in the international market had experienced a lot, as cut-throat competition always remains in WTO.

Inna Dudykina
Inna Dudykina
Directorate for WTO Policies

Stimulation of Russian companies and products extended attendance in foreign countries is real in conditions of WTO membership, reports Russian Business Newspaper citing the roundtable “State support for Russian exporters: financial and non-financial tools and development prospects”, which took place in the Analytical Center. 

"Export promotion is an important direction in state policy for competitive growth of home commodity producers", said the Head of the Directorate for WTO Policies of the Analytical Center Inna Dudykina. WTO does not prohibit the financial export promotion, but puts it under a strict limitation. A state is not entitled to provide entrepreneurs with subsidies which are directly correlated with an export matter. However, it may compensate credit interest rate, which was taken on for these products release, reports the publication.

Over the last 5 years 103 trials connected with export public finance mechanisms use violation were held in WTO. "Analyses of the cases in this sphere give evidence to the fact that controversy arises in spheres which can not enter mass competitive production", Russian Business Newspaper cites Ms. Dudykina. "Those are productions of agricultural goods (76 cases), cars, civilian aircrafts". Hearing of cases' length is around 1,5 years and it works in favor of WTO members: they continue to help exporters in foreign markets and think up new ways  of backing which will replace previous one.