Subsidies to Industrial and Agricultural Producers Subsidizing of industrial producers The Russian Federation will discontinue all the programs for subsidizing industrial producers or will modify those programs so as no subsidies be granted to exported goods or with the purpose of improving the competitive capacity of Russia-made goods as compared to imported goods. The Russian Federation will notify the WTO concerning the current subsidies and will not demand that any of the provisions stipulated in Articles 27 and 28 of the WTO Agreement on Subsidies and Countervailing Measures be applied in this connection.
Subsidizing of agricultural producers The overall distorting effect on trade of the support granted to agricultural producers must not exceed $ 9bn in 2012; by 2018, its amount will have to be gradually reduced to the level of $ 4.4bn.
In order to avoid any excessive focusing of support on certain types of products, from the moment of this country’s accession to the WTO and until 31 December 2017 the per annum volume of support provided to the producers of certain types of agricultural goods must not exceed 30% of the amount of support granted to other types of products.
All the export-related subsidies granted to agricultural producers will be bound at a zero level. After Russia’s accession to the WTO, the exemption from VAT currently granted to some types of agricultural products will be abolished.
Pricing with Regard to Energy Carriers The producers and distributors of natural gas in the Russian Federation will operate on the basis of normal commercial prices and the principles of payback and profitability. The Russian Federation will continue her practice of regulating the prices of energy carriers established for the population and non-profit consumers.
Sanitary and Phytosanitary Measures (SPM) and Technical Barriers to Trade (TBT) All SPM and TBT in the Russian Federation and the Customs Union member states will be elaborated and implemented in accordance with the relevant WTO Agreements.
The Russian Federation will develop and implement international SPM srandards in the framework of her membership in Codex Alimentarius (the internationally recognized guidelines relating to food safety), the World Organization for Animal Health and the International Plant Protection Convention.
The reasons for suspension, recall or refusal of permission for importing products will be made compatible with the international standards and recommendations, as well as with the provisions stipulated in the WTO’s SPM Agreement.
The Russian Federation will stage negotiations on veterinary export certificates that contain requirements which are different from the requirements established by the Customs UnSection The Real Sector of the Economy ion in those cases when the relevant exporter country has submitted a substantiated request that such negotiations are to be conducted in the period until 1 January 2013.
The RF Federal Agency for Veterinary and Phytosanitary Supervision (Rosselkhoznadzor) will no longer suspend the supply of imported products by organizations on the basis of their on-site checks before providing the relevant exporter country with opportunities for suggesting adequate measures for correcting the situation, with the exception of cases fraught with some serious risks to human or animal health. Rosselkhoznadzor is to send a preliminary report to the exporter country’s competent agencies in order to obtain the necessary explanations.
The Russian Federation will apply international standards to the development of technical regulation measures, provided that such measures do not turn out to be an inefficient or inadequate instrument for achieving the established goals.
Towards the end of the year 2015, the mandatory requirements to the telecommunication equipment applied in public telecommunication networks will be limited to the requirements stipulated in the technical regulation rules adopted under the agreements concluded by the Eurasian Economic Community and the Customs Union.
In accordance with the WTO’s TBT Agreement, the Russian Federation will, on a continual basis, revise the lists of products to be subject to mandatory certification or declaration of conformity, as well as all the technical regulation measures applied in her territory (including the measures envisaged in the framework of the Customs Union and the Eurasian Economic Community, so as to confirm their necessity for achieving the Russian Federation’s goals.
Within the period no later than 30 June 2012, the certified accreditation bodies will be replaced by a single national body in change of all accreditation issues. The body’s name and other relevant information will be published on the websites of the RF Federal Agency for Technical Regulation and Metrology (Rosstandart) and the Customs Union’s Commission.
Trade-Related Investment Measures The Russian Federation will ensure compatibility of all the laws, regulatory norms and other relevant measures to be implemented under the WTO Trade-Related Investment Measures Agreement with the corresponding WTO provisions.
All the measures that are incompatible with WTO provisions, including preferential tariffs or exemptions from tariffs which are applied to investment programs (including investment programs implemented in the automobile industry) and any agreements concluded in their framework, must be abolished prior to 1 July 2018.
Trade-Related Aspects of Intellectual Property Rights Protection The Russian Federation will implement in full the provisions stipulated in the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights, including the relevant law enforcement provisions, without any transition period.
The Russian government will continue to implement measures designed to prevent the functioning of those websites (whose servers are situated in the Russian Federation’s territory) that unlawfully distribute content protected by authorship rights or intermediate rights.
The Russian Federation will initiate investigation and criminal proceedings against those companies that unlawfully distribute via the Internet objects protected by authorship rights or intermediate rights.
RUSSIAN ECONOMY IN trends and outlooks By the moment of her accession to the WTO, the Russian Federation will have been applying all the provisions established by the Berne Convention for the Protection of Literary and Artistic Work http://www.multitran.ru/c/m.exet=4330237_2_1.
Transparency The provisions stipulated in the WTO Agreement will be applied uniformly across the entire territory of the Russian Federation, including the regions engaged in frontier trade, special economic zones and other territories where special regimes may be established with regard to tariffs, taxes and regulatory measures.
In accordance with the WTO’s requirements, all legislation that can influence trade in commodities, services and intellectual property rights should be subject to immediate publication. The Russian Federation will be renewing, on a regular basis, the relevant official publications, including those posted to websites, and ensure access to these publications for WTO members, individuals and companies.
In order to improve the procedure of access to official publications, the Russian Federation will create an information service whose duty it will be to assist WTO members and all other related parties in gaining such access.
Thus, in particular, the Russian Federation will publish, prior to their enactment, the texts of all the legislative acts that can influence trade in commodities, services and intellectual property rights, and ensure that a reasonably lengthy period of time (no less than 30 days) be established for the WTO members to present their comments, excepting those acts that regulate issues pertaining to emergency situation, national security, monetary policy and other measures, the publication of which will encumber law enforcement procedures, be contrary to public interests or detrimental to the commercial interests of countries or private entrepreneurs. No legislative act that can influence trade in commodities, services and intellectual property rights may come into force prior to its publication.
The Russian Federation will send to WTO members her annual reports on the implementation of the current privatization program over the entire period of its implementation.
From the date of Russia’s accession to the WTO, the lists of goods and services whose prices are subject to government control will be published in Rossiiskaia gazeta [The Russian Newspaper]. Russia will apply government control measures to pricing with regard of certain types of goods and services, including natural gas, rough diamonds, vodka, water supply services, natural gas transportation services, baby foods, medical products, public transport services and railway freight and passenger services. Price control measures are not to be applied in order to protect Russia-made products or services.
The Functioning of the Customs Union betweenу Russia, Kazakhstan and Belarus The Customs Union between Belarus, Kazakhstan, and Russia came into existence as of January 1, 2010. From 1 July 2011, all customs borders between these three countries have been removed.
From 1 January 2012, the three states are to create a single economic space. The Russian Federation will publish all the legislative acts concerning the Customs Union prior to their adoption and ensure that a reasonably lengthy period of time be established for the WTO members and all the key related parties to prepare their comments and submit them to the Customs Union’s empowered body.
Section Social Sphere Section 5. Social Sphere 5.1. Social standard of living 5.1.1. Incomes of the population Growth rate of real per capita income of the population in 2001-2003 is by 2 or more times higher than the GDP growth rate in real terms, reaching the double rates (up to 14.6% in 2003), which was mainly due to the rapid growth of real wages and pensions.
In 2004-2007 the excess growth rate of real per capita income of the population over the of GDP growth rate was also typical, however, the gap in the values of indicators was reduced to 1.5-1.8 times. During that period, the growth rate of real volume of pensions lagged behind GDP growth, while real wages continued to grow rapidly.
The economic crisis of 2008-2009 has provoked a decrease in growth rate of real per capita income of the population. Nevertheless, the values of the indicator remained positive:
- in 2008 the growth rate was 3.8%, - in 2009, it has dropped down to 0.9% (of GDP in that year declined by 7.8%).
Since the beginning of the post-crisis period, growth in real per capita income was almost equal to the increase in real GDP, having made 3.9% as compared to 2009 level.
Pensions in 2008 increased in real terms by 18% in 2009 - by 11%, and in 2010 - by 34.8% due to indexation, valorization, the introduction of additional payments to the social subsistence level. The high rate of growth of wages in this period was observed only in 2008. In 2009, real average monthly wages declined compared with 2008 by 3.5%. Since the beginning of real economic growth, average monthly wages began to grow, and the of its growth in 2010 made 5.2%.
In 2011, real per capita personal income exceeded the level of 2010 only by 0.8% with the GDP growth equal to 4.3%.
--2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 GDP Monetary revenue The size of pensions Average monthly wage Fig. 1. GDP growth rate of per capita income, average monthly gross wages and the average size of pensions in 2001 to RUSSIAN ECONOMY IN trends and outlooks The growth rate of per capita income and average monthly wages for the period 2001-were higher than the average rate of cost of living (except for 2005 and 2011). As a result, compared with 2001 in 2011 (in 2001 prices):
- real per capita personal income have grown by 2.4 times;
- the real average monthly wages increased by 2.6 times;
- the real size of pensions – by 2.8 times;
- the actual size of the subsistence level rose by the end of the first six months of 2011 was 1.5 times on average for the whole population and for the working population and children, and 1.6 times for retirees (Table 1–3).
Table Average per capita real income and the subsistence minimum for an average of the total population in 2001-Growth,% against previous year A living wage for an averPer capita income, USD age of the total population, The average cost of living per month Average per capita income Rb per month for all people 2001 3062 2002 3429 1571 12 2003 4616 1886 35 2004 5739 2127 24 2005 7315 2721 27 2006 9354 3139 28 2007 11262 3438 20 2008 13193 4054 17 2009 15633 4736 18 2010 17354 5228 11 2011 18633 6133 7 (9 months) Source: estimated as per Rosstat data.
Table Average real gross wage and the subsistence minimum of working population in 2001-Growth,% against previous year A living wage for an Average monthly average of the total Subsistence minimum of wages, Rb population, Rb per Average monthly salary able-bodied population month 2001 3240 2002 3788 1710 17 2003 4910 2057 30 2004 6034 2329 23 2005 7714 2935 28 2006 9756 3390 26 2007 12147 3717 25 2008 15260 4387 26 2009 17131 5121 12 2010 19384 5642 13 2011 21637 6487 12 (9 months) Source: estimated as per Rosstat data.
Section Social Sphere Table Average monthly pension and retiree cost of living, adjusted for consumer price index in 2001-The subsistence mini- Growth,% against previous year Average size of pen mum pensioner Rb per Subsistence minimum of a sions Rb per month Average monthly pension month retiree 2001 1024 2002 1198 1198 17 2003 1462 1433 22 2004 1714 1612 17 2005 2132 2180 24 2006 2501 2506 17 2007 2784 2739 11 2008 3706 3216 33 2009 4771 3768 29 2010 6872 4155 44 2011 7809 4738 14 (6 months) Source: estimated as per Rosstat data.
Higher growth rates of per capita income relative to cost of living have led to an increase in ratio of core indicators of incomes against the subsistence minimum:
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