Duties on oil for Belarus break Russia’s international obligations

09/06/2010 12:00 - 417 Views

MINSK, 7 June (BelTA) – Russia’s existing duty on the oil Belarus buys is a particularly tangible exception from free trade rules. The levying of customs duties from specific kinds of the oil products Belarus buys from Russia as from 1 January 2010 breaks international obligations of the Russian Federation, representatives of the Ministry of Foreign Affairs of Belarus told BelTA.

According to the Foreign Ministry, Russian domestic prices for gas are substantially lower than the gas prices Belarus pays, even taking into account transportation costs. The difference gives a considerable competitive edge to Russian companies and their products on the Russian and Belarusian markets. The difference is in essence a frontal subsidy to the entire Russian economy. Gazprom’s exclusive right to gas export is another restriction. It is a measure used for non-tariff regulation of the foreign trade, said the source.

The source reminded that at present foreign nations use 28 measures to restrict their trade with Belarus, including nine antidumping measures and five special protective ones. The largest number of restrictive measures is used by Russia (12), which is followed by Ukraine (6), the European Union (4), India and USA (two each), Moldova and Kyrgyzstan (one each). The antidumping and special protective measures are used against Belarusian fiberboards, simulation fur, pile fabric, compressors, steel pipes, matches by Ukraine, against Belarusian potassium chloride, carbamide-ammoniac compound, steel pipes by the European Union, against acrylic fibers and cord fabric by India, against steel reinforcement by the USA, against flour by Kyrgyzstan, and against sugar by Moldova.

Russia’s restrictive measures deliver the most devastative effect due to the trade volume and the affinity of economic ties between the two countries, said the source. Russia has unequal terms of competition in place for Belarusian producers willing to participate in government purchases. The access of Belarusian goods to the Russian government purchases is restricted by a 15% price preference available to Russian producers only. The preference is applicable only to a limited number of Belarusian products. Restrictions have been imposed on the access of the Belarusian automobiles and municipal vehicles, which are made in Russia, to purchases by federal authorities and provincial administrations. Preferential lending available from Russian banks, which partially subsidize interest rates for loans taken out to buy agricultural machines on leasing terms, is restricted. The measure is banned as an import substitution subsidy by the WTO. The leasing of Belarusian automobiles and agricultural machines to Russian agricultural companies is restricted.

Used to examine the content of antibiotics in Belarusian animal products and verify the absence of gengineered microgerms and melamine, Russian veterinary and lab control methods create technical barriers to impede the access of Belarusian products to the Russian market. In addition, in Russia there are unequal terms for registering maximum wholesale prices for Belarusian and Russian medications. The terms reduce the competitive ability of the Belarusian medications, which are exported to Russia, because the new terms introduce preferences for Russian companies.

The Belarusian Foreign Ministry calls upon Belarusian exporters to contact the Protective Measures and Access to Markets Office of the Foreign Trade Department of the Belarusian Foreign Ministry regarding restrictive economic measures enforced by foreign nations against Belarusian products.

06/07/2010 04:35 PM

Source: law.by
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