Adjustment Of Russia's Foreign Trade Regime Under The WTO Rules

After19years of negotiations, Russia finally became the156th member of WTO, and began integrating into the global trading system actively under the frame of WTO. During this period, Russia has experienced the process of active adjustment and passive acceptance of the foreign trade system.From the system level, WTO is the main international mechanism for free global trade. The system consists of a series of principles, rules and regulations. Goods trade, service trade and trade related intellectual property rights are WTO three big trade fields. Around this three big fields, WTO members after repeated negotiations, gradually formed the interest equilibrium state, so as to develop the international regulations and standards in line with the interests of the majority. These criteria can be expressed as the principle of non-discrimination, transparency principle, the principle of free trade and economic development principle.Accession to the WTO means Russia must adjust its foreign trade system, and make it accord with the requirement of WTO. This is not only because Russia looks for developing its economy through the development of foreign trade and further promoting economy transition, but also the WTO requires to adjust its member’trade system. Thus, the reconstruction of Russian foreign trade system is made up of positive and passive adjustment. During the adjustment process, Russia also pays attention to its national conditions and formulate right foreign trade reform target; reasonably uses WTO rules to protect domestic industries from the external economic impact; through making reasonable economic policy, supports domestic enterprises.Before joining WTO, Russia’s foreign trade system and the WTO rules have a lot of inconsistencies. First of all, after the establishment of the customs union, the three countries established a unified customs, so Russia has to follow the UN regulations, simultaneously keep in accords with the WTO rules. How to coordinate with WTO requirements needs to be considered. At the same time, the Russian tariffs, customs clearance system, management system, technology import and export inspection and quarantine system and market access system have many differences from WTO regulations, and need to be revised and perfected. In addition, the Russian trade complaint procedures, complex, time consuming, can’t protect the trader’s interests well, so it must be perfected.Russia’s foreign trade adjustment is a long-term and complicated task, not only before accessing the WTO, but also in the future development process. During the negotiations process of joining the WTO, Russia gradually established the foreign trade system suitable for WTO requirements through modifying domestic legislation. Russian follows the principle and provisions of WTO under the Customs Union framework. By greatly reducing tariff rate, simplifying customs procedures and standardizing quota, permit and subsidy system, the Russian trade tends to be more standardization, transparency and predictability. In addition, Russia also makes commodity inspection and quarantine accord with the international standards, further expands market access in the fields of food, retail, bank, insurance and other industries, and improves the investment environment. According to trade complaint, not only the customs union stipulated the right to appeal, but also Russia improved the customs appeals procedures.Through a series of trade regulation and construction, Russia show a continuously opening up trade pattern and it will have an far-reaching effect on Russian, other countries and the world trade. As for Russia, it is mainly to promote domestic trade laws and regulations to be refined continuously, and conform with the international trade system; reduce transaction cost and promote the development of foreign trade of Russia; improve the system environment and strengthen the ability of attracting foreign capital; strengthen the Russian competition environment and promote domestic economic modernization. Of course, the foreign trade system adjustment will also face many challenges. Some domestic enterprises can not afford open impact, at the same time the government in formulating economic policies should be related to the WTO limitations, such as limiting the direct subsidy level, and increase the degree of transparency in government procurement. In the foreseeable future, Russia will further open its market, improve the foreign trade environment, reduce the transaction cost, and actively integrate into the global trade process.