USTR Releases Report on Russia's Adherence to WTO Commitments
The Office of the U.S. Trade Representative on Dec. 22 released its 2016 Report on the Implementation and Enforcement of Russia’s World Trade Organization Commitments (here). Russia acted as a responsible WTO member “in some areas” in 2016, but departed from core WTO tenets “on the whole,” USTR said. Russia adopted “inward-looking, import-substitution” economic policies in 2016, and maintains opaque customs regulations for import valuation, tedious import licensing requirements, and troublesome rules for imports of alcoholic products. Moreover, several Russian domestic products could be subject to export restrictions or prohibitions, the report says. But positive actions taken by Russia in 2016 include decreasing its bound tariffs by deadline, notifying appropriate WTO committees of new and draft measures, eliminating a safeguard measure on schedule, working to implement the Trade Facilitation Agreement, and participating in its first WTO trade policy review, according to USTR.
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U.S. officials have indicated no concerns surrounding Russia’s implementation of its customs fee structure, the report says. While the Eurasian Economic Union -- which includes Russia -- has properly implemented the General Agreement on Tariffs and Trade Customs Valuation Agreement, industry representatives have said that Russia maintains obscure import valuation regulations, causing uncertainty and more paperwork, USTR said. Further, importers have occasionally expressed concern that Russia’s Federal Customs Service (FCS) uses reference prices inconsistent with invoice valuations, and U.S. officials have urged Russia to provide customs valuation legislation to the WTO Committee on Customs Valuation. “The United States will continue to monitor Russia’s valuation practices and work with the FCS to ensure full implementation of Russia’s commitments on customs valuation,” the report says. USTR’s report consolidates two reports previously submitted yearly to Congress: One on Russia’s implementation of its agreement to join the WTO in 2012, and another on enforcement actions at the WTO associated with Russia, the agency said.