It's been a long story with our country. The USSR was a stubborn country, which did not like global associations. Communist associations suited it better and thanks to Joe Stalin and the KGB, there were plenty! But the world has changed and now we live in a global associated environment.
So, where has Russia arrived by finally signing all the WTO agreements? Well, actually, there is no big deal. For years, interest groups have been inflating the public debate. Anti-WTO rhetorics are the best presented in the media field. Here are some rumors, which have been circulationg the media since the 1990's.
- WTO is going to kill Russia's agriculture. How? Well, by introducing cheaper meats, vegetables and grains to the market. "Evil global forces will force Good Mother Russia to stop donating to her agricultural businesses, some still semi-government owned". What is really important? Well, government support to business in Russia is usually the essence of inefficiency. So, why don't we welcome the idea that less of our money will be being dumped into this financial black hole? The issue is complex, but mostly, the problem is with people who got used to the soviet idea of "self-sufficiency", which has almost never been nothing but a myth.
- WTO is going to kill Russia's manufacturers. Well, this one is a real problem. In today's world it is important to keep the industrial backbone afloat. Russian manufacturers of cars, ships, heavy machinery etc openly acknowlege that they still exist mainly due to import regulation. Even with the current customs tariffs, the Chinese car manufacturers still have a chance of biting a lump off the Russian car market in the next few years.
- WTO will kill Russia's banks. Give me that pistol, WTO, THAT'S how you make the control shot! Yes, this one is just dumb. There are many foreign banks in Russia anyway, there shuld be with credit rates of 15-17% for businesses and 19-30% for private persons. The financial system is stable, and there is always room for a few players.
Now, isthis all going to happen? Well, I don't think so. The reasons are simple.
- Russia is not rushing to reform the customs service. Like not at all. All the agreements on reducing tariffs are extremely vague with terms stretching from 6 to 15 years with conditions like "possible temporary increases of the tariffs to compensate for the changes". Customs will be working by the Customs Codex of the Customs Union, so, most likely, the rules are going to remain as they are today. And today the process is not transparent, complicated and full of difficulties.
- The system of requirements for goods is going to be strictly internal. I do not believe that anytime soon I will be able to import cosmetics having the ISO and GMP certificates of the manufacturer.These papers are now rubbish in Russia. Well, not that. One needs to present them while applying for the certificates of the Customs Union. Just to give you an example:
In order to import cosmetics for in-country sales, a company must present:
- State Registration papers, issued by Rospotrebnadzor of Russia. Every product must be have such a paper, or be included in a list with similar products in one. Cost: 100 USD per certificate + around 150 USD per product for testing. At least 100 ml of each product has to be submitted for testing. These take about 2 months to be issued.
- The new declarations of conformity. Now you have to declare the conformity to the Technical Requirements of the Customs Union, which is fresh and raw. Product groups are allowed again, but just for similar products. 130 USD per paper + up to 200 USD per product for testing. Again, at leasr 2 packages of at least 30 ml each fot each and every product. Can only be issued after the first papers are presented. Will take approximately 2 weeks.
Professional cosmetics become a nightmare with hundreeds of products and comparatively low volumes.
Stay tuned =)
So, where has Russia arrived by finally signing all the WTO agreements? Well, actually, there is no big deal. For years, interest groups have been inflating the public debate. Anti-WTO rhetorics are the best presented in the media field. Here are some rumors, which have been circulationg the media since the 1990's.
- WTO is going to kill Russia's agriculture. How? Well, by introducing cheaper meats, vegetables and grains to the market. "Evil global forces will force Good Mother Russia to stop donating to her agricultural businesses, some still semi-government owned". What is really important? Well, government support to business in Russia is usually the essence of inefficiency. So, why don't we welcome the idea that less of our money will be being dumped into this financial black hole? The issue is complex, but mostly, the problem is with people who got used to the soviet idea of "self-sufficiency", which has almost never been nothing but a myth.
- WTO is going to kill Russia's manufacturers. Well, this one is a real problem. In today's world it is important to keep the industrial backbone afloat. Russian manufacturers of cars, ships, heavy machinery etc openly acknowlege that they still exist mainly due to import regulation. Even with the current customs tariffs, the Chinese car manufacturers still have a chance of biting a lump off the Russian car market in the next few years.
- WTO will kill Russia's banks. Give me that pistol, WTO, THAT'S how you make the control shot! Yes, this one is just dumb. There are many foreign banks in Russia anyway, there shuld be with credit rates of 15-17% for businesses and 19-30% for private persons. The financial system is stable, and there is always room for a few players.
Now, isthis all going to happen? Well, I don't think so. The reasons are simple.
- Russia is not rushing to reform the customs service. Like not at all. All the agreements on reducing tariffs are extremely vague with terms stretching from 6 to 15 years with conditions like "possible temporary increases of the tariffs to compensate for the changes". Customs will be working by the Customs Codex of the Customs Union, so, most likely, the rules are going to remain as they are today. And today the process is not transparent, complicated and full of difficulties.
- The system of requirements for goods is going to be strictly internal. I do not believe that anytime soon I will be able to import cosmetics having the ISO and GMP certificates of the manufacturer.These papers are now rubbish in Russia. Well, not that. One needs to present them while applying for the certificates of the Customs Union. Just to give you an example:
In order to import cosmetics for in-country sales, a company must present:
- State Registration papers, issued by Rospotrebnadzor of Russia. Every product must be have such a paper, or be included in a list with similar products in one. Cost: 100 USD per certificate + around 150 USD per product for testing. At least 100 ml of each product has to be submitted for testing. These take about 2 months to be issued.
- The new declarations of conformity. Now you have to declare the conformity to the Technical Requirements of the Customs Union, which is fresh and raw. Product groups are allowed again, but just for similar products. 130 USD per paper + up to 200 USD per product for testing. Again, at leasr 2 packages of at least 30 ml each fot each and every product. Can only be issued after the first papers are presented. Will take approximately 2 weeks.
Professional cosmetics become a nightmare with hundreeds of products and comparatively low volumes.
Stay tuned =)
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