DOMESTIC GAS MARKET PRODUCT ARE WAITING TIMES Hypercompetition
`WTO: what we take #39;? The article with that title authorship chief editor of #39;Metal Supply and Sales `published in the latest issue of the magazine` YourTube `, corporate publishing world#39;s largest pipe company TMK. It it is primarily a question of the impact of Russia#39;s accession to the WTO on the pipe market.
Expectations that the adherence of Russia to the World Trade Organization, will reduce entry barriers in export markets do not correspond to the real situation. But on the domestic market, competition with imported supplies sharply aggravated. Consider the export and import - two key business unit within the WTO.
Large-scale investments and the introduction of new facilities in the last ten years have allowed Russian pipe companies to significantly improve product quality and expand the geography of exports from 15 to 85 countries. At the same time, the supply of its products for export, they are faced with tariff and non-tariff protection measures markets of foreign countries, hampering the potential of domestic pipe companies. After joining the WTO pipe manufacturers have opened the possibility to use the tools provided by the WTO against such discriminatory attitudes, but it is not so easy.
Yes, Russia won the right to challenge the Authority WTO Dispute Settlement measures that discriminate against national companies and that put them at unnecessary barriers to trade. But the process of handling and dispute resolution at the Dispute Settlement Body is extremely difficult and time consuming. The main difficulty lies in the fact that the right of access to that Authority have only the state, because the WTO is an intergovernmental organization. The process of conflict resolution in the trade organization is multifaceted and involves consequences for the state not only legal, but political. After all, is not a court in the usual sense.
It is rather a quasi-judicial authority, which play a significant role diplomatic, but no legal mechanisms. So from the point of view of business interests in the WTO dispute settlement procedure has many problems.
In the European Union in respect of the Russian pipe products now are two measures imposed by using the method of power adjustments, as a country with a non-market economy. The EU has set anti-dumping duties on seamless and welded pipe production Russian pipe plants, which make up 27.2 and 16.8%, respectively, which significantly limits the ability to supply pipes for the domestic market in the EU. Currently, PMC is preparing a lawsuit in the European Court of general jurisdiction (Luxembourg) to appeal against the decision of the EU Commission on the extension of the existing anti-dumping measures on seamless pipes for Russia and Ukraine for the period up to July 2017.
Anti-dumping measures in welded pipes for a period of up to December 2013, after which a high probability of excitation procedure prolongation of these measures over the next 5 years.
Thus, the sharp reduction in barriers to the export direction not wait. That will not happen for the simple reason that in the process of accession of the state that are already members of the WTO, did not take any liability in relation to Russia. They claimed only the Russian Federation.
Those are the rules. And so the level of fees of third countries that are members of the WTO, does not change. Only if the court.
The level of tariff protection in the national economy will fall sharply. Pipe market - is no exception. According to the Development Fund for tubular products, in 2012 the import duties will be reduced from 15-20% to 5-10% depending on the type of pipe.
Reduced rates will affect all heading for HS. During 2012-2013, the decrease rate of the 43 positions (LDP, casing, tubing, drill pipe and PNC), in 2014 - 10, in 2015 - from 71 in 2016 to 10 more positions. FRCC director Alexander Deyneko rightly believes that the reduction of customs duties will increase competition in the Russian pipe market.
And for domestic pipe manufacturers domestic market is the main source of sales of manufactured products, which generated 85% of revenue.
The experience of other countries to join the WTO shows that by reducing entry barriers exacerbated the foreign competition and increased cases of unfair competition. To prevent this situation is impossible. With it, you can only fight through the initiation of anti-dumping, countervailing and special safeguard investigations.
The only way - in a timely manner to protect their interests against unfair imports of tubular products, ensuring adequate measures. According to the Director of External Relations NLMK Anton Bazuleva, governments need to address deficiencies in the application of trade defense instruments: inertia in considering applications of steel companies, the failure of the introduction of provisional duties for quickly stopping the dumping or damage, lack of formalized procedures for early warning, a formal approach to the calculation damage to the domestic industry, etc.
The negative impact of WTO accession for the steel industry - an increase of production costs. According to a senior manager of Advanced Development CMI Vladislav Belousov, to July 1, 2013 rates for rail transportation should be levied in accordance with the rules of the WTO before the end of 2014 to be a transition to market principles of gas pricing on the basis of equal yield of gas supplies to the domestic and foreign markets. The transition to market-based pricing based on global energy prices and freight services, of course, will lead to higher costs of Russian enterprises and the growth of production cost of steel products in Russia (see Table. - A comparative assessment of the positive effects and risks).
Agreements that were signed in the framework of the WTO, are the hundreds of pages, and precedents to resolve trade disputes WTO - thousands of them. Yes, the WTO provides for its members and their good business opportunity, and if skillfully use them, you really get the dividends. But it would be naive to believe that just after entering the world trade club business will benefit.
Receiving Preferences is only possible as a result of systematic and purposeful work.
