From the WTO announcement:
Russia’s accession to the WTO cleared a major hurdle when the WTO Working Party on its accession approved, ad referendum on 10 November 2011, the package spelling out Russia’s terms of entry to the organization. The Working Party will now send its accession recommendation to the 15 —17 December Ministerial Conference, where Ministers are expected to approve the documents and accept Russia as a WTO Member.
Market access for goods — tariff and quota commitments
On average, the final legally binding tariff ceiling for the Russian Federation will be 7.8% compared with a 2011 average of 10% for all products:
- The average tariff ceiling for agriculture products will be 10.8%, lower than the current average of 13.2%
- The ceiling average for manufactured goods will be 7.3% vs. the 9.5% average today on manufactured imports.
Russia has agreed to lower its tariffs on a wide range of products. Average duties after full implementation of tariff reductions will be:
- 14.9% for dairy products (current applied tariff 19.8%)
- 10.0% for cereals (current applied tariff 15.1%)
- 7.1% for oilseeds, fats and oils (current applied tariff 9.0%)
- 5.2% for chemicals (current applied tariff 6.5%)
- 12.0% for automobiles (current applied tariff 15.5%)
- 6.2% for electrical machinery (current applied tariff 8.4%)
- 8.0% for wood and paper (current applied tariff 13.4%)
- US$ 223 per ton for sugar (current applied tariff US$ 243 per ton)
Tariffs will be bound at zero for cotton and information technology (ITA) products (current applied tariff on ITA products is 5.4%).
The final bound rate will be implemented on the date of accession for more than one third of national tariff lines with another quarter of the tariff cuts to be put in place three years later. The longest implementation period is 8 years for poultry, followed by 7 years for motor cars, helicopters and civil aircraft.
Tariff rate quotas (TRQs) would be applied to beef, pork, poultry and some whey products. Imports entering the market within the quota will face lower tariffs while higher duties will be applied to products imported outside the quota.
The in-quota and out of quota rates are listed below with the out of quota rates in parentheses:
- For beef 15% (and 55%)
- For pork zero (and 65%). The TRQ for pork will be replaced by a flat top rate of 25% as of 1 January 2020.
- 25% (and 80%) for some selected poultry products
- 10% (and 15%) for some whey products
- Some of these quotas are also subject to member-specific allocations
Market access for services
The Russian Federation has made specific commitments on 11 services sectors and on 116 sub-sectors.
On telecommunications, the foreign equity limitation (49%) would be eliminated four years after accession. The Russian Federation also agreed to apply the terms of the WTO’s Basic Telecommunications Agreement.
Foreign insurance companies would be allowed to establish branches nine years after Russia accedes.
Foreign banks would be allowed to establish subsidiaries. There would be no cap on foreign equity in individual banking institutions, but the overall foreign capital participation in the banking system of the Russian Federation would be limited to 50% (not including foreign capital invested in potentially privatized banks).
On transport services, the Russian Federation made commitments in maritime and road transport services, including the actual transportation of freight and passengers.
On distribution services, Russia would allow 100% foreign-owned companies to engage in wholesale, retail and franchise sectors upon accession to the WTO.
Export duties would be bound for over 700 tariff lines, including certain products in the sectors of fish and crustaceans, mineral fuels and oils, raw hides and skins, wood, pulp and paper and base metals.