China builds on border trade(2)

Accession to WTO

Russia was accepted as the 156th member of the WTO on Aug 22, 2012, with a process of accession of more than 19 years.

At the end of the implementation period, the average tariff ceiling for Russian imported products will be lowered to 7.8 percent from the average 10 percent that was applied before accession. The average tariff ceiling for manufactured products will be 7.3 percent instead of 9.5 percent while the average tariff ceiling for agricultural goods will be 10.8 percent instead of the earlier average of 13.2 percent.

In addition, Russia has offered improved market access opportunities in certain areas of goods and in many service sectors, according to the WTO.

"After accession to the WTO, Russia started to scrap differentiated taxes in transportation, which discriminated against foreign goods, and enhanced transparency through removing the price determining mechanism of imported goods. It's very meaningful for high quality Chinese products with competitive prices to enter Russia," Wang Junwen, president of China Association of International Trade, said during a forum on Jan 17 in Boao, Hainan province.

"The mentality and attitudes of Russian businessmen are changing after the accession to the WTO and trade areas are expanding. Chinese exports, occupying the middle- and low-end of Russia markets with price advantages will expand. We also see an enlarging import inventory and the prospect is bright for trade in gas, grain and minerals," Zou Jifeng, deputy mayor of Manzhouli, told China Daily.

Wang from the association pointed to promising China-Russia cooperation in high-tech sectors as Russia undergoes re-industrialization based on high technology and supported by rich resources and talent.

More than 70 percent of China's exports to Russia are now machinery and equipment products, the majority of which are complete sets of equipment products. The share is still expanding in view of Russia's robust demand for equipment in reforming industries and building up infrastructure such as power stations, according to Wang.

"It proves that accession to the WTO brings new opportunities for a country's economic development. Russia and China are highly complementary industrially. Russia did not set obstacles for Chinese industries and capital to enter Russia," said Oleg Soskovets, former first deputy prime minister of Russia, during the Boao forum.

The World Bank estimated that Russia's accession to the WTO will drive the nation's economy to grow by 3 percent while the US expects its exports to Russia will double in five years.