名古屋経済大学機関リポジトリ

Article

Accession of Uzbekistan to WTO

with the main focus to ＩＰＲ:

Comparative Review with Russia and China

SHAYBAZYAN Goar*

Chapter 2: Russian Case to Join the WTO

2.1. Russia - a recent example of preparation to accede WTO ｂｙ ａ developing civil law country

2.2. Objectives of Russia's accession to WTO 2.3. The history of Russia's WTO accession

2.4. An overview of Russia's commitments on trade in Goods 2.5. Agriculture

2.6. Export Duties

2.7. An overview of Russia's commitments on trade in services

2.8. An overview of Russia's commitments on Trade Related Intellectual Property Righs

＊ Ph. Ｄ. in Law, Nagoya University of Economics

ｌ am pleased to extend my honest and profound appreciation to my main aca-demic advisor Professor Haruo Saburi for continuously supporting my Ph. Ｄ. study and accompanying research, for showing patience, providing motivation, and shar-ing his tremendous expense. His guidance was of invaluable assistance throughout

esearch and authoring of my thesis. He has been a superior advisor and mentor than anyting l had ever imagined for my Ph. Ｄ. studies. ｌ am very happy and proud that ｌ could study under his guidance｡

l would like to extend my gratitude to Professor Masashi Tomioka for his percep-tive comments and support.

2.9. Trademarks 2.10. Criminal measures

2.1 1. Industrial designs and patents

2.12. Establishment of uniform patent fees for residents and non-residents 2.13. Protection of plant varieties, animal breeds and topographies of integrated

circuits

2.14. Competent authorities

2.15. Specialized court for intellectual property disputes 2.16. Enforcing compliance

2.17. Border measures

2.18. Changes in the field of intellectual property 2.19. Summary (MEIKEI LAW REVIEW No. 39) Chapter 3: China's Case to Join the WTO

3.1. China − ａ recent example of preparation to accede WTO ｂｙ ａ developing civil law country

3.2. Objectives of China's accession to WTO 3.3. The history of China's WTO accession 3.4. Trade in Good

3.5. Trade in services

3.6. Trade related intellectual property rights

3.7. China's adoption of international copyright instruments 3.8. Service marks and other trademarks

3.9. Patents

3.10. Administrative enforcement experience of IPR protection within the cus-toms

3.1 1. Judicial enforcement experience of IPR 3.12. Criminal measures

3.13. Implementation 3.14. Summary

Chapter 4: Accession of Uzbekistan to WTO 4.1. Chronology of accession of Uzbekistan to WTO 4.2. Past discussions in CIS countries

4.3. Objectives of Uzbekistan's accession to WTO 4.4. Trade in Goods

4.5. Agriculture

4.6. The impact of inadequate Intellectual Property Rights Protection in Uzbekistan

4.7. Some problems in Uzbek IP Legislation

4.8. The absence of ａ clear system in the legislation 4.9. Judicial enforcement

4.10. Criminal measures 4.11. Summary Chapter 5: Conclusion Bibliography

Abstract

The role of the World Trade Organization （ ＷＴＯ）is growing

worldwide and many countries wish to become

ａ member of this

international organization as it is more beneficial for member

countries to trade with each other rather than with non-member.

In order to become ａ member of the WTO, each country should

de-velop domestic legislation in compliance with WTO requirements,

including Intellectual Property Rights (IPR) protection. The weak

protection of IPR causes governments to have uncollected taxes for

budget revenue, a lack of incentives to create new IPR, lack of

in-vestments, and decreases the prestige of the government among

others. The U.S. Special 301 Report and WTO working party

criti-cized Uzbekistan as an acceding 八NTO country on its weak IPR

protection. The purpose of this study is to show Russian and

Chinese processes in working with IPR and other laws as ａ possible

model for Uzbekistan, the main steps of bringing and improving

its legislation to international standards, and complying with

WTO Trade Related Aspects of Intellectual Property Rights

Agreement (TRIPS) and other Agreements.

List of Abbreviations

AIDS

ATC

BPC

BRICS

CIS

cu

DSU

EU

EurAsEC

Acquired Immune Deficiency Syndrome

The Agreement on Textiles and Clothing

Basic People's Court

Brazil, Russia, India, China and South Africa

Commonwealth of Independent States

Customs Union

Dispute Settlement Understanding

European Union

FAC

FDI

FCL

GACC

GACG

GATS

GSP

HPC

Ibid

IP

IPC

IIP A

IPR

MOU

MFERIT

MFN

MOU

OECD

OJSC

OTCA

PRC

SAIC

SIPO

SPC

SPP

Financial and Accounting Consultants

Foreign Direct Investment

Federal Constitutional Law

General Administration of China Customs

Global Anti-Counterfeiting Group

General Agreement ｏ

ｎ Trade in Services

Generalized System of Preference

Higher People's Court

abbreviation for the Latin Ibidem, meaning

same" used by Chicago Manual of Style

International Centre for Trade and Sustainable

Development

Intellectual Property

Intermediate People's Court

International Intellectual Property Alliance

Intellectual Property Rights

Memorandum of Understanding

Ministry of Foreign Economic Relations, Investment

and Trade

Most Favoured Nation

Memorandum of Understanding

Organisation for Economic Cooperation and Development

Open Joint-Stock Company

Omnibus Trade and Competitiveness Act

People's Republic of China

State Administration for Industry and Commerce

State Intellectual Property Office

Supreme People's Court

Supreme People's Procurate

Sanitary and Phytosanitary Measures

Textiles Monitoring Body

Trade Policy Review

TRQ

SCM

TRIPS

USSR

USTR

us

VAT

WIPO

WTO

Tariff Rate Quota

Agreement on Subsidies and Countervailing Measures

Agreement on Trade-Related Aspects of Intellectual

Property Rights

International Union for the Protection of New

Varieties of Plants

Union of Soviet Socialist Republics

United States Trade Representative

United States

Value-Added Tax

World Intellectual Property Organization

World Trade Organization

Chapter l: Introduction

1.1. Background

The research was inspired by the necessity of the integration of the Republic of Uzbekistan ①zbekistan) to international eco-nomic community （ Ｗ ｏｒld Trade Organization) in order for it to obtain  ａ series of advantages, such as the abolition of anti-dumping sanctions, an attraction of foreign investments, receiving good conditions for the access of Uzbek products to foreign mar-kets, etc･

The Uzbek lawmakers have ａ challenging task to bring the legislation of Uzbekistan into conformity with WTO agreements, including the Agreement on 7呪IPS (Agreement on Trade Related Aspects of the Intellectual Property Rights). The Ministry of Foreign Economic Relations, Investment and Trade （Ｍ ＦＥＲＩＴ ）of the Republic of Uzbekistan estimates that the country needs to

adopt and revise legislative acts in the field of customs, civil, crimi-nal, tax, bank, and other laws. In the Constitution, and in all exist-ing laws and codes of Uzbekistan, in the case of contradiction, it is noted that the priority of international norms on national norms

requires the alignment of Uzbek legislation with international agreements, including the WTO agreements1｡

Important attention at international negotiations on the ac-cession of Uzbekistan to WTO is given to legal protection and en-forcement of intellectual property rights2. １ｎ our country, it is an acute problem to combat piracy, counterfeiting and unfair

compe-tition where, by some estimates, presently 65% of CD and ９０% Ｄ ＶＤ are counterfeit3. The 7 貎 が °S Agreem･?nt provides minimum stan-dards to which a11 WTO members are required to comply, and, most importantly, provides specific procedures and mechanisms on

IPR protection, compliance with which is necessary to conduct ａ legal analysis of the mentioned Agreement in order to identify de-ficiencies in Uzbek laws on intellectual property and to make possi-ble suggestions on bringing it into conformity with the TRIPS

Agreem･?nt. Compliance with the TRIPS Agreement would also fur-ther development of the TRIPS rules in Uzbek legislation｡

The TRIPS Agreement requires substantially strengthened protection and enforcement of IPRs, which has its advantages and disadvantages. From the side of advantage, strengthening of the IPR regime is expected to bring ａ positive impact in developing countries, including more domestic innovation, FDI, and technol-ｏｇｙ transfer. However, it could also have certain negative impacts,

including higher prices for protected technologies and products, and restricted abilities to achieve distribution through product du-plication or copying･

1 Tansikbayeva G.M･ ， KoHCTMTyUMOHHO と?7か∂召o Pecny がし7jtＡ'jt J台ぶとリ'CMC TaH (Constitut丿onal Law of t加 召印･iblic ofぺ 乃 加 衍ｓ￡an) in Russian Language. (Tashkent State Law Institute, 2003), 47.

２ Ahmedova L., "y6bITKM y36eKMCTaHa OT KoHTpa φaKUHH (The Losses From the Counterfeiting Products for Uzbekistan)" in Russian Language, The East True, August 12 ， 2010, sec. 3， 12･

３ Central Asian News Service, 'Uzbek Customs Officers Prevented Smuggling of Goods Worth S 40 Million in 201 1' ， February 29， 2012. Accessed March 2 ， 2012. http://en.ca-news.org/news:45201 1/

The high level of infringement4 0f IPR protection in Uzbekistan causes unemployment, uncollected taxes for budget revenue, lack of investment from developed countries, the suspen-sion of the creation of IPR and their integration in economic turn-over, and the undermining of state authority0.

1 ｡2. Purpose

The purpose of the study is ａ comprehensive legal analysis of

the accession of Russia and China into the WTO and how these

countries brought their legislation and norms into conformity

with the WTO Agreement standards. The disclosure of its rules

and envisaged legal procedures, which establishes the level of legal

protection, determines the degree of WTO Agreements' potential

impact on the Uzbek legislation and development of proposals for

the improvement of the Uzbek la ｗ｡

Conclusions and recommendations of the research can be used

in lawmaking activity for the correction of legal regulation

short-comings, in further research of the legal regulations, and in the

curricula of law and economic schools｡

After completion of my thesis, I’d like to apply my enhanced

knowledge and skills to contribute to the development process of

the accession of Uzbekistan to the WTO by publishing ａ textbook

about my researches.

1.3. Structure

This dissertation includes five Chapters and bibliography. It

begins with acknowledgments, followed by an abstract, list of

ab-breviations, table of contents, introduction chapter, three main

4 the words infringement and violation in this thesis are synonyms and has ａ ●  ●        ●

similar meaning･

５ Ahmedova L., "y6bITKM y36eKHCTaHa OT KoHTpa φaKUHH (The Losses From the Counterfeiting Products for Uzbekistan)" in Russian Language, The East True, August 12 ， 2010, sec. 3， 12.

chapters, conclusion chapter and bibliography. Chapter One deals

with the main points of the research. Chapter two analyzes the

Russian case for joining the WTO, chapter three analyzes China's

case for joining the WTO. Chapters two and three go through the

measures and legal reforms taken by Russia and China for

com-plying with WTO Agreement. Chapter four goes through

Uzbekistan's accession process and its lega囗mplications for

com-plying with WTO

rules. And the last chapter, five,

is the

conclu-sion, which gives possible suggestions and reminders about the

significance of the study･

Chapter 2: Russian Case to Join the WTO

2｡1. Russia − ａ recent example of preparation to accede WTO by ａ developing civi 囗aw country

On ２２ August 2012 the Protocol of December 16 ， 2011, "On the accession of the Russian Federation to th･?Mar Γαかesh Agreement Establishing the World 7 ￣友:ide Organization from 15 April 19946," came into force in Russia. The Protocol was ratified b ｙ the Federal Law of July 21 ， 2012 N0. 126, ¨０πΓ血 汐cation of the Protocol on 沽ｅ Accession of the Russian Ｆｅｄ･?ration to the j/f･:irra八留h Agreement Establishing the World Trade Organization on 15 Ap Γil, 1994and it is an international treaty for the Russian Federation｡

The Protocol provides that the Russian Federation: joins the j/f･:irraか･?sh Agrei?merit and thereby becomes ａ member of the Ｗ ＴＯ; accepts the obligations under the Multilateral Trade

Agreements of the Ｗ ＴＯ; and complies with the stages of

conces-6 World Trade Organization, "Status of WTO Legal Instruments" 2012, 60･

7 The State Duma, ∂ 凡1TM φMKa μJ77 かOTOKC: λＪ ∂ 躇:mcot? Ｊ∬/7とﾖﾘyj鰯/ 勿CCMM ｆ

ﾉ 吻 ρμ7A･＝ Ａ･ｍ Ｇ 刀一:jiameHMK) o･∂几Ywemn と凹 ｇ 召7?76･7 15 Anpejin 1994 y7 (On

召α￡びication of the ｔｒｏ￡ocol ０７７ the Accession of the Russian Fi?deration to the

Marrakesh Agreement Establishing the World 77 Γαｄｅ Organization 077 75 y1 夕辺Z，

sions and commitments on opening domestic markets for goods

and services listed in the schedules of commitments of the Russian

Federation on goods and services8｡

The Report of the Working Pa べy on the Acc･?ssion of the

Russian Ｆｅ

ｄ･?ration

to the World Trade Organization consists of 7

sections: Economy, Economic Policies and Foreign Trade;

Framework for Making and Enforcing Policies; Policies Affecting

Trade in Ｇｏｏｄs; Trade-Related Intellectual Property Regime

(TRIPS); Policies Affecting Trade in Services; Transparency; and

Free Trade and Customs Union Agreements9. Each section includes

the description in the relevant field of the trade regime of Russia

and the Customs Union, requests and positions of 八forking Party

members, and approved projects of Russian obligations to enable

compliance of the Russian trade regime with WTO rules10 ･

Negotiations on Russia's accession to the World Trade

Organization were held 18 years, from 1993 to 201 1". Russia

be-came ａ member of the WTO on the 22nd of August 201212.

2｡2. Objectives of Russia's accession to WTO

Among the specific objectives of accession for Russia to the

WTO were the following:

a) becoming comparable with existing and non-discriminatory

conditions for access of Russian goods to foreign markets13; b)

ac-cess to the international mechanism for resolving trade disputes14;

8 World Trade Organization, Protocol ０７７ 沽ｅ Accession of the Russian Fe?deration, 2011.

９ World Trade Organization, "Report of the Working Party on the Accession of the Russian Federation to the World Trade Organization.", November 17 ， 2011. 10 Ibid.

11 Pascal Ｌａｍｙ尸 ＷＴＯ Membership Will Change Russia," P四 召uropean Inst汲山? Quarterly Review 2/2012, no. 989 (May 31 ， 2012):57, www.utu.fi.

12 Ibid.

１３ Elena Bandura, " BcTynneHHe POCCMM  Ｂ ＢＴＯ: uejiH, 3aziaMH, nepcneKTMBbi (Russia's WTO accession: goals, objectives, prospects)。Tamojnya Ru (Moscow, September 19 ， 2012), httpｓ://ｗｗｗ.youtube.ｃｏｍ/watch?v=2WllqELedBA.

c) creating ａ more favourable climate for foreign investment as ａ result of bringing the legal system into conformity with WTO

rules10; d) expanding opportunities for Russian investors in

mem-ber countries of the WTO, in particular in the banking sector16; ｅ） creating the conditions for improving the quality and competitive-ness of domestic products as ａ result of increasing the flow of for-eign goods, services, and investments in the Russian market17; Ｄ participation in the development of international trade rules, tak-ing into account its national interests18; g) improvtak-ing the image of Russia in the world as a full participant in international trade19; h ） the possibility of Russia's accession to the ＯＥＣＤ （ Ｗ ＴＯ member-ship − an obligatory condition)20.

2.3. The history of Russia's WTO accession 2.3.1. Negotiations

In 1986, the Soviet Union had applied for observer status in the Uruguay Round of negotiations, the purpose of which was

subse-quent accession to the GATT21. United States, however, rejected

14 Ibid.

１５ Center of Expertise on WTO, "UejiM Ｈ 3aaayH npHCOeflHHeHHH - POCCMH Ｈ BceMHpHaa ＴｏｐΓOBaa ＯｐΓaHH3aiIHH − BTO (Aims and Objectives of Accession − Russia and the World Trade Organization − WTO)," accessed September 7 ， 2014, http://ｗｗｗ.ｗtｏ.ｒｕ/russia.asp?f=target&t=9･

16 Ibid.

17 Bandura, "BcTyn POCCMM  Ｂ BTO : uejiH ， 3aaaqH, nepcneKTMBbi (Russia's WTO accession: goals, objectives, prospects)

18 Ibid.

１９ Center of Expertise on WTO, "Ilejin Ｈ 3aaaMH npHCOeflHHeHHH - POCCMH Ｈ BceMMpHan ＴｏｐΓOBaa ＯｐΓaHH3aiIHH − Em⊃( Ａｉｍｓ and Objectives of Accession − Russia and the World Trade Organization − WTO)."

20 I. Shuvalov, "ルＨＩ POCCMM npucoeziMHeHMe Ｋ BTO − KJIKMeBOM 3Tan Ha nyTM BCTyn JieHMH Ｂ[Ｊ]Ｅ)ＣＰ( Ｆｏｒ Russian Accession to the WTO − ａ Key Step on the Way of Entry into the OECD)" (RosBusinessConsulting, July ９， 2012). ２１ A.Pahomov, M.Balasanyan, "B3anMOOTHO Ⅲe H M H BceMHpHOH ＴｏｐΓOBOM

ＯｐΓaHH3auHH (BTO/ TATT) Ｈ POCCHM： OT PICTOPMM FlepeΓｏＢｏｐＨｏΓｏ Flpouecca ｏ BcTyruieHMM Ｂ ＯｐΓaHH3au Ⅲｏ Ｋ B03M0>KHbIM TeopeTM^ecKHM IloCJieflCTBMHM ^neHCTBa b BTO. (Relationship of the World Trade Organization ( ＷＴＯ/ ＧＡＴＴ) ａｎｄ Russia: The History of Negotiating Process of Russia's Accession to

the request, explaining that the Soviet Union is ａ country with ａ planned economy, which is incompatible with the principles of free trade22. Only in 1990 was the USSR able to get observer status23｡

In 1993, Russia has made ａ formal application for the acces-sion to GATT2 ＼ 1n 1995, the negotiations on Russia's accession to the WTO started20. The most difficult negotiations were conducted with the United States, the EU, and China26. Disagreements with the European Union were settled after Russia supported the Kyoto Protocol2'. The most difficult were negotiations with the United States, which were carried out for six ｙｅａｒs28. The main disagree-ments covered issues of financial markets, the supply of agricul-tural products to the Russian Federation, and the protection of intellectual property rights29. Russia and the United States signed ａ protocol on Russia's accession to the WTO, November 20 ， 200630･

The signing took place during the session of the Asia-Pacific Forum in Hanoi (Vietnam)31｡

In June 2009, Russian Prime Minister Vladimir Putin, at the

session of the EurAsEC Interstate Council in Moscow. issued ａ

for-the World Trade Organization as Well as Possible Theoretical Consequences for Russia from WTO Membership)｡SciTecLib Γαひ, December 1 1 ， 2011, 2,http:// ｗｗｗ.sciteclibrary.ｒｕ/rus/catalog/pages/1 1597.html.

22 Ibid. 23 Ibid.

24 Wi Ⅲam Ｈ. Cooper, "Russia's Accession to the WTO," The LibΓα○' ｏ/' Congress CRS Report for Congress, no. RL31979 (April 20, 2006):2.

25 Ibid.

26 A.Pahomov, M.Balasanyan, "B3anMOOTHO Ⅲe HM H BceMMpHOH ＴｏｐΓOBOM ＯｐΓaHH3auMH (BTO/ rATI) h POCCMM: OT MCTOPMH Flepe ΓｏＢｏｐＨｏΓｏ npouecca ｏ BcTyruieHMM  Ｂ ＯｐΓaHM3aiIHK) Ｋ B03M0>KHbIM TeopeTuqecKMM nOCJieflCTBHHM

tJjieHCTBa b BTO. (Relationship of the World Trade Organization ( ＷＴＯ/ ＧＡＴＴ) ａｎｄ Russia: The History of Negotiating Process of Russia's Accession to the World Trade Organization as Well as Possible Theoretical Consequences for Russia from WTO Membership) 。¨2.

27 Ibid. 28 Ibid. 29 Ibid.

３０ George Walker Bush, George Ｗ. Bush (Government Printing Office, 2006), 2105.

mal statement on the suspension of individual negotiations on

Russia's joining of the WTO32. Meanwhile, Putin reported that

from January 2010, in negotiations on WTO accession, Russia

would participate within the confines of the Customs Union of

Russia, Belarus, Kazakhstan33. Pursuant to the WTO

Agreement, these countries could join not only as a individuals

countries, but also as customs unions34｡

Until the end of October 2011, Georgia didn't support Russia's

accession to WTO because of the legalization of two illegal border

checkpoints in the conflict zone of Georgia Psou (Abkhazia) and

Zaromag

(Tskhinvali region)30. However, on November 9

， 2011,

under Swiss mediation, the agreement between Georgia and Russia

was concluded36｡

The EU-Russian summit took place on December 7

， 2010 1n

Brussels37. Before the summit, the Minister of Economic

Develop-ment of Russia and the EU Trade Commissioner signed

ａ

memo-randum on the conclusion of negotiations on Russia's accession to

the WTO38. ０ｎ October 1， 2011,

the U.S. and Russia also declared

that they finished their bilateral negotiations on WTO accession39｡

０ｎ December 16 ， 2011 at the Ministerial Conference of the

World Trade Organization, documents on Russia's accession to the

WTO were

approved40. However, the ratification process was

com-32 Michael Smith, "World Trade Organization: Russia and the WTO," World 77Γαｄｅ Organization, 2012.

33 Ibid. 34 Ibid.

35 Jim Nicole, "Georgia ［Republic ］:Recent Developments and U.S. Interests," Congressional Rese『 嵒 ＆ｒ･j ice 7-5700 (June 21， 2013):13.

３６ Racz Andras, "Russian WTO Accession and the Geneva Agreements: Implications for Russia and Georgia," Transantlantic Academy, December 2011, 13. ３７ EU News, ¨ＥＵ and Russia Agree Terms for Moscow's Eventual WTO

Accession/ EU- Delegation of the European Union to Japan," 2011, http://ｗｗｗ･ euinjapan.jp/en/media/news/news2011/20111021/120000/.

38 Ibid. 39 Ibid.

plicated by the fact that ａ group of deputies of the State Duma of the Russian Federation submitted ａ request to review the constitu-tionality of the Protocol to the Constitutional Court of the Russian Federation41. After consideration of the constitutionality of the Protocol by the Constitutional Court of the Russian Federation did not reveal inconsistencies of the Constitution of the Russian Federation, the State Duma of the Russian Federation

ratified the Protocol by ａ majority vote (238 votes "for" and 208 "against") 气After that, the federal law on ratification of the Protocol was approved by the Federation Council and signed by the President43.

2.3.2.

Post-Soviet countries and the WTO

Eleven of the fifteen post-Soviet countries are already

mem-bers of the WTO

(Kyrgyzstan,

Latvia, Estonia, Georgia,

Lithuania, Kazakhstan, Moldova, Armenia,

Ukraine, Russia,

Tajikistan), and the remaining four have received observer status

and are negotiating to join the ＷＴＯ｡

Most countries are in the process of long negotiations on the

accession to the WTO. Kyrgyzstan, one of the first post-Soviet

countries to join the WTO, observed the unusually short period of

entry (2 years)气At the same time other countries in the region

World Trade Review, no. Cambridge University Press (October 19 ， 2013):1. 41 Law firm "Muranov, Chernyakov and Partners," " Oh ji am h − PenopTa>K CO

CjiymaHHM  Ｂ KC Ｆq)ｎｏ KOHCTMTyilMOHHOCTM ripOTOKOJia  ｏ BcTyruieHMM Ｂ ＢＴ０ ，(Liｖｅ Report From the Hearings in the Constitutional Court on the Constitutionality of the Protocol of Accession to the ＷＴＯ) 。" July 3， 2012, http:/ /blog.pravo.ru/blog/rospravo_ru/5828.html.

42 The State Duma of the Russian Federation, " rocayMa PaTH φHUMpOBajia ripOTOKOJI  ｏ ripHCOeflHHeHHH POCCMM  Ｋ BTO no/i YBeiueBaHMH r naBbi MMH3KOHOMpa3BHTHH. (The State Duma Ratified the Protocol on Russia's Accession to the WTO Under the Exhortations of Minister of Economic Ｄｅｖｅｌｏｐｍｅｎt)。¨？Γavo 沢叫July 10 ， 2012, http://pravo.ru/news/view/74823. 43 Ibid.

44 1CTSD 尸Ｐｏｓt-Soｖiet Countries on the Way to the ＷＴＯ: the Accession Process," 7T八formation and analytical 加 面tin "B八面es," no. 1 (October 2007)｡

which obtained membership in the WTO needed many years

(Armenia needed more than 10 years),

and for some of them the

process is not finished

ｙｅt气

Figure l: Post-Soviet countries joined WTO by the date of 2016. WTO post-soviet

countries Date of accession

1 . Kyrgyzstan December 20 ， 1998 (the 133rd member of the WTO 玳 2 . Latvia February 10 ， 1999 (the 134th member of the WTO 爪 3 . Estonia November 13 ， 1999 (the 135th member of the WTO 玳 4 . Georgia June 14 ， 2000 (the 137th member of the WTO 燃 5 . Lithuania May 31 ， 2001 (the 141st member of the WTO ）气 6 . Moldova July 26 ， 2001 (the 142nd member of the WTO ）气 7 . Armenia February 5 ， 2003 (the 145th member of the WTO 戸 ． 8 . Ukraine May 16 ， 2008 (the 152nd member of the WTO) 气 9 . Russia August 22 ， 2012 (the 156th member of the WTO ）气 10. Tajikistan March 2 ， 2013 (the 159th member of the WTO 戸 ． 11. Kazakhstan November 30 ， 2015 (the 162nd of the WTO 戸

Source: Author

45 Ibid.

46 USA International Business Publications, Kyrgyzstan 召αｓ加ess Law Handbook: Strategic かかrmation and Laws, vol. 1 (International Business Publications, USA, 2012), 24.

47 Aslund Anders and Dombrovskis Valdis, How Latvia Came Throug ん 沽ｅ Financial Crisis (Peterson Instituteかr International Economics: Special R印ort), Peterson Institute for International Economics: Special Ｒｅｐｏｒt(Book 17) (Institute of International Economics, 2011), 11.

48 U.S. International Trade Commission, ０μｅΓαぴon of the 77Γαｄｅ Agree?merits ｔｒ噌Γα叺 The Ye『in Trade, 51st R 印ort 1999 (International Securities

Association for Institutional Trade Communication Publication 3336, 2000), 30. ４９ ｊ ccession to the World 77Γαｄｅ Organization ごIssues and Recommendationsｿor

Ｃｅ肘Γal Asian and Caucasian Economies 加77Γansition, vol. 48 (Tashkent: United Nations, 2001), 129.

50 Kiskis Mindaugas, "Lithuanian Experience with WTO Membersihip 气Mykolas Romeris University, February 2 ， 2006).

5 1 Sattar Sarosh and Clinton Ｒ. Shiells, The Low-Income Countries of the Commonwealth of Independent StatesごProgress and Challenges in T.Γansition (International Monetary Fund, 2004), 81.

Outside the WTO framework are four post-Soviet states:

Azerbaijan, Belarus, Turkmenistan and Uzbekistan. In 2013,

Turkmenistan took the initiative to join the WTO57.

2.4. An overview of Russia's commitments on Trade in Goods

Ｇ･?x7･?Γal Agreement on Tariffs and Trade (GA7 ・T) - multilat-eral instrument that forms, along with other agreements, the legal foundation of the world trading system. October 30 ， 1947 1ｓ consid-ered to be the date of establishment of the GATT, which is when it was approved by the Final Act of the Interim Agreement regulat-ing matters of GATT trade relations08. Entered into force in 1948 and by ａ number of reasons from the beginning of its existence, GATT had ａ dual nature: as ａ legal document and as an intergov-ernmental organization that controls its compliance00. Over the years, the text of the Agreement was subject to modification. Modern GATT − ａ set of multilateral agreements including the ac-tual text of the Agreement, as well as ａ series of separate agree-ments, developing and interpreting its provisions. In legal terms, the GATT 1947 and the GATT 1994 are various multilateral agree-ments, the latter of which plays the role of ａ trade agreement for the countries participating in it. Finally, the GATT 1994 falls

53 Press office of the President of Ukraine Victor Yushchenko, "'YKpanHa CTana １５２ MJieHOM BTO, [Ukraine Became the 152nd Member of the ＷＴＯ]'in russian,"

May 16 ， 2008,http://ｗｗｗ.president.ｇｏｖ.ｕａ/news/9927.html.

54 World Trade Organization, "WTO 1 2012 Press Releases − WTO Membership Rises to 157 with the Entry of Russia and Vanuatu," Press/671, August 22 ， 2012･ 55 World Trade Organization, "WTO 1 2013 News Items − Tajikistan to Become

159th WTO Member," WTO, January 31 ， 2013,http://ｗｗｗ.ｗtｏ.ｏｒｇ/english/ ne ws_e/ ne ws 13_e/acc_t j k_31 j an 13_e. htm ｡

56 httpｓ://ｗｗｗ.ｗtｏ.ｏｒｇ/english/thewto_e/countries_e/kazakhstan 57 " 3aceaaHHe Ka6nHeTa Mmhhctpob TypKMeHHCTaHa[Meeting of the

Turkmenistan Cabinet of Ministers]in Russian," State Ne?ws A{.μ?ncy ｏ/ Turkmenistan, January 18 ， 2013,http://ｗｗｗ.turkmenistan･ ｇｏｖ.tｍ/?id=3161･ 58 John H. Jackson, The Juパsprudence of GA TT and the WTO: Insights on Treaty

Law and Economic 月読itions (Cambridge University Press, 2000), 20. 59  Ibid.

within the scope of the WTO and largely determines the place and role of the WTO in international trade. The main text of GATT consists of 38 articles divided into four parts, the first two of which relate to trade and political regime, the third − the procedures, and the fourth − the conditions of participation of developing countries in the GATT0｡

From January 2010, main requirements related to import and export of goods to and from the country are included in the Customs Code of the Customs びnion Russia, Belarus and Kazakhstan Customs Code (CU)61, the Agreement on Common Measu Γes ofNc 択 一￡αΓiff Regulation in Respect of Third Countrii? ｓ62 (25 January 2008), the Agreement on the Introduction  αｎｄ Ａ河 戒cation of Met:isures Cone･?rning Foreign T,Γade in Goods on 沽ｅ Common Customs Territory in Respect of Third Countries63 (9 June 2009), and the Agreement on Lici?using in the Area of Foreig 刀 肘erchandise TradeM (9 July 2009)65｡

During the negotiations on goods entrance to the market, it

was decided on 57 bilateral protocols on its liberalization66. Ａ１１ non-agricultural goods tariff rate were bound to 7.3% (compares with

6０ World Trade Organization and Uruguay Round, The Legal Texts?: The Results of the びruguay Round of Multila ひΓal Trade Negotia びons (Cambridge, UK; New Ｙｏｒk: Cambridge University Press, 2010), 424.

61 Interstate Council of the Eurasian Economic Community, Customs Code ( ぴ 沽 召 Customs びnion, vol. 17, 2009.

62 Agreement on Common A･ かasures cぴNon-Tar 汀 沢egulation in 沢espect ｏ/ 7偏 心 Countries, 2008.

６３ The Government of the Republic of Belarus, the Government of the Republic of Kazakhstan and the Government of the Russian Federation, Agree?merit on the Introduction and Application of A右?asures Concerning Foreign 71Γade in Goods 077 the Common Customs Territo ひin Respect ｏ/' Third Countries, 2009.

６４ The Government of the Republic of Belarus, the Government of the Republic of Kazakhstan and the Government of the Russian Federation, Agreement on Licensing in the Area of Foreign Merchan ぷse 77Γade, 2009, http://ｗｗｗ.tsouz.ｒｕ/ MGS/MGS_23/Pages/Reshenie コ 廴Prilozeniel .aspx･

65 World Trade Organization, "Report of the Working Party on the Accession of the Russian Federation to the World Trade Organization," 55･

66 International Trade Center, "Russia's Accession to the ＷＴＯ: Major Commitments, Possible Implications," September 2012, 1.

2011 1t was 9.5% )67. For example, the average tariff binding rates in the EU is 3.9%68, in Japan, 2.5 °/o69, in the Ｕ.S･ ,3.3%'°, which means that Russian binding rates are higher than in developed countries, and its success in negotiations on non-agricultural goods binding tariff rate｡

The transition period of non-agricultural goods are different from product to product, and the longest seven-year transition pe-riod among non-agricultural goods are settled for automobiles, helicopters, and civil aircraft'1. During its accession to the WTO, Russia was provided a so-called "adaptation period" which was dif-ferent for each product group and each sector depending on their degree of sensitivity to changes in the customs tariff｡

Transitional periods for the liberalization of market access, as ａ rule, is two to three years. According to the most sensitive prod-ucts the transitional period could be five to seven years. The over-a11 reduction of the weighted average rate from the current level to the final level agreed upon in negotiations on Russia's accession to the WTO will be about 3%. A similar decrease was observed in the part of the industrial goods. Part of agricultural products and food reduction will be about 4.4%｡

In particular, if one considers the obligations for each product group, the following can be noted. ０ｎ foreign medicines, duty rates will be reduced from 15.5% to 6.5-5% during the transitional period, and at the same time, duties on medical equipment and

medical substances will be decreased at ａ faster rate, to 2-3%72｡ For the chemical products market, joining the WTO in most

７ ︵ χ ︶   ０ ぴ 冖 ｈ ︶ 冖 ｈ ︶ 冖 ｈ ︶ Ibid.

World Trade Organization, "Trade Profiles 201 1," Geneva, 201 1，63 Ibid.. 92.

70 Ibid., 179.

71 World Trade Organization, Protocol ０７１ 沽ｅ Accession of the Russian Fi?deration･ 72 Erohin V.L., "BcTyruieHne POCCHM  Ｂ ＢＴ０ 063op ＨｐＨＨＨＴｂｌχ 06H3aTenbCTB

(Russia's Accession into ＷＴＯ: Overview of the Undertaken Obligations)," Ｖｅｓ話 法Stavr 叩ol N1 (1)(2011).

cases will not have significant effects. In general, the duty rate ｗ111 be reduced from 10 to 6.596-5%. In those cases where the reduction will be more significant (cosmetics, soaps and detergents, lino-leum, some finished products made of plastic), it will occur within five to six years of the transition period'3. Duties on technological, construction, scientific, and measuring equipment will be signifi-cantly reduced or eliminated. Within three years after accession, import duties will be exempt from computers, their means of pro-duction, and element base. Duties on household appliances and electronics, down from 15%, will remain at the level of 7-9% 气

In order to be granted access to the market of goods, Russia had to reduce the average rate of import duty from the 10%on a11

products to 7.8%, including for industrial products from 9.5% to 7.3%, and on agricultural products from the current 13.2% to 10.8 %75. According to ａ third of national tariff heading scale, the final rate will take effect immediately after Russia's accession to the WTO, while the remaining tariffs will be reduced gradually over ａ number of years. For example, the import duties on ａ quarter of goods fall to the final level of binding within three years. In gen-eral, the transition period will be completed by the end of 2020 ， with the longest transition periods set for pork (eight years), pas-senger cars, helicopters, and civil aircraft (s ｅｖｅｎ years) '6｡

As can be seen from Figure ２ and Figure 3 ， the reduction of tariffs on key categories of goods does not exceed five percentage points, while the rate of decline is 40% (except for technical com-munication)｡

Within the framework of the above mentioned categories on

some goods the tariffs will be reduced even more to ａ lesser extent,

73 European Commission, "Trade Market Access Database: Violation of WTO Bound Rates for Import Tariffs," December 13， 2013.

74 Ibid. 75 Ibid. 76 Ibid.

Figure 2. Reduction of tariffs after Russia's WTO accession Reduction of Tariffs after Russia's WTO

accession 25. ０   ５   ０   ５   ０ ２    １     １

Cereals Oil crops Electric equipment  Technical

Ｏ             ・             ・             ・ Ｏ           ︻ り           Ｏ           Ｑ ︼           ‘ １           ７           ″ ｀ ︶         ︵ ／ ︶         Ｏ   ｓ ｎ ａ ｅ ｍ transmitting information ―The current rate,% ^"Rate after ａ transitional period Speed reduction, %

Figure 3: Change in percentage points Change in percentage Points

Technical means transmitting information

Cereals

0.   1.5    3.   4.5    6. Source: Author's compilation from the information on obligations of the

Russian Federation in the framework of the WTO accession process"

and in some cases, the initial level of binding of customs duties ex-ceed rates effective prior to accession. Figure 4 shows some of these products.

８    ２ ２    ２ １ ７ １ １ ６ ０

Figure 4: Estimated reduction of import tariffs on food products,% Tariff before/at Accession

− −

Butter and other Milk and cream not fats and oils from  concentrated nor

milk ｓｅ ︲ ｂａ ｔ ｅ ｇ ｅＶ ｓ ９９ − ． containing added sugar ■ Tariff before accession

・ The binding tariff level at the time of accession

Ｉ The fina凵evel of binding tariff

Source: Author analyses from Russia's Accession to the WTO: Implications for Belarus' Trade and Industries78

2.5. Agriculture

The agricultural sector is of particular importance for Russia

and its trade partners because the country itself is ａ major

ex-porter as well as ａ major imex-porter of ａ number of important

goods. Starting in 1999, the production of agricultural goods in

Russia has increased quite rapidly. The coefficient of the average

growth rate of gross agricultural output from 1999-2010 amounted

78 Irina Tochitskaya, "Russia's Accession to the ＷＴＯ: Implications for Belarus' Trade and Industries" (Minsk: German Economic Team Belarus IPM Research Center, June 2012), 5.

to 2.4% per year. In absolute terms, the average annual gross agri-cultural output amounted to $86.4 billion us dollars in 2008-2010｡

Volumes of Russian exports of food and agricultural products increased along with the growth rate of imports. Since 2002, Russia is one of the largest suppliers of grain to the world market. The main crops Russia exports are wheat and barley. The country has been gradually increasing its volume of cereals and rice ex-ports. In addition, the modernization of the food industry has con-tributed to an increase in the volume of Russian exports of beer, ice cream, meat, and dairy products. More than two-thirds of the volume of Russian exports of food and agricultural products were produced with the intention of being for foreign countries80｡

The main importers of Russian wheat are Egypt and Turkey･

Large stocks of barley are exported to Saudi Arabia, Libya, and Iran. In 2010, large quantities of rice were exported to Turkey. The geographical proximity of these countries to Russia contributes predominantly to Russia's competitiveness as an exporter, which is made possible by the relatively low cost of transportation. Regulation of Russian grain exports depends on the availability of grain in the domestic market. In the case of ａ shortage of grain, both tariff and non-tariff measures are used to restrict the grain exports81｡

During the negotiation process on accession of Russia to the WTO, the problems in the agricultural sector were discussed, and the Russian representative told the WTO members that the follow-ing legal acts were adopted for resolvfollow-ing the problems accumulated in the agricultural sector: "Guid･?Z 加･?ｓか Γαｇパｃ㎡ 加Γal policy of the Ｇｏ詢?rnment of the Russian Ｆｅｄ･?rationｿor 2001-2010*2", approved

79 Sergey Kiselev and Roman Romashkin, "Russian Accession to the ＷＴＯ: Impact on Agricultural Trade and Production," Interna ぴonal Centre かｒ Trade and Sustainable Development Number 40 (June 2012).

80 Ibid. 81 Ibid.

by Decree of the Government of the Russian Federation, July 27 ， 2000; Federal Law N0. 264-FZ "On the dev･?lopm･?nt of ag 八culture83" (ａｓ last amended on Dec 29, 2014); and Resolution of the Government of the Russian Federation dated July 14 ， 2007 N0. 446, "On Ｓ￡ｄ･?μΓogram of ag パｃ㎡ 詒Γal development and regula ぴon of αｇパｃ㎡ 詒ΓαZμΓoducts, Γaw materials andｿ ｏｏｄｿ ｏｒ2 θ昭 一20128气

"Guidelines foΓ αｇパcultuΓal pc辺cy of the Govi?rnment of the Russian Ｆｅｄ･?rationルr 2001-2010n was developed by the specialists of the Ministry of Agriculture, the Ministry of Finance, and the Ministry of Economic Development and Trade with the participa-tion of farmer scholars and in close cooperaparticipa-tion with the regional administrations of the Federation. The following features were taken into consideration in the development of the concept: − First, emphasis should be placed on the development and strengthening of the principles of management in the market econ-omy conditions80;

- Second, stabilization of agricultural production and its develop-ment are necessary to ensure with relatively limited public mate-rial and financial ｒｅsｏｕｒces86;

- Third, assigned tasks should be resolved within a short time, since the expansion of food products in Russia comes quite

8２ Decree of the Government of the Russian Federation, とλIHOBHbie /ﾐianρaBJi と"HHH

Ari:,叨7ρOMOBOJlbCl･z7 とｗ/7心 急J1MTMKM Ilpa 召MT 6 Jib C T.召∂ PoCCHHCKOfi 06?Ｊとｙ:･aijHH

Ha 2001 一部10 fonb バ Ｇ回 心lines か ｒｊ ｇパｃ汕;Γal Policy of the Government of the

沢ussian Fede Γαａ凹 かr 2001 一郎10), 2000.

83  叭?MepanbHbiM 33KOH ″O Pa3BMTMM G?JlbCKOTO X03HHC1･ 召∂″(.Federal Law

N0. 264-FZ ″077 the Devel 叩merit of Ag パｃ㎡ ￡『 ｅ』, 2006.

84 Resolution of the Government of the Russian Federation, IJOC 7･aHOBJI とリine

/ かaBMT･? ・７z･CTBa  凡:;･CCHfiCKOfi φ?Ｊ,?μ∂那 珂 o n:icynapcT 召とﾖﾘ1HOH / かorpaMMe

戸∂ Ｊ 召j7 7･j7刄  ごとり7bCKOTO Xo 3HMCTBa  刀 戸と了･y J1H p O B 3 H M H PblHKOB

0 ・UbCK 公03HMC TB HHOH IJpOUyKUMM, CblpbH M [IpOMOBOJlb C TBMH / 勿 部 昭 一2012

foabi (On State Program ｏ/' ｊ ｇ庇 回 ￡Γal Devel 叩merit a 砲 沢 昭 ㎡ αぴ凹 ０/

Agricult Γal Products, Raw Materials and Food ルｒ 部 昭 一2012), 2007.

85 Ministry of Agriculture of Russia, ¨Ｆｏｏｄ and Agricultural Policy of Russian

Federation," July 27 ， 2000,http:// ｗｗ ｗ.ｍｃｘ.ｒｕ/ｄｏｃｕｍｅｎtｓ/ｄｏｃｕｍ ｅｎt/ｖ7 ＿ｓho ｗ ＿

print/3590.77.htm. 86 Ibid.

intensively87｡

Federal Law N0. 264-FZ "On the development of ag 八culture' contains measures to ensure the availability of credit resources for organizations and entrepreneurs engaged in primary and （ｏ ｒ）fｕｒ-ther (industrial) processing of agricultural products and its

implementation88｡

Government support also can assist those who are engaged in processing of agricultural raw materials on leased asset89. The main condition is that the sharing of income from the sale of proc-essed products shall be at least 70% for the calendar year｡

Recycling is ａ compensated part of the cost of interest on loans obtained in Russian credit institutions before January 1 ， 2021. The funds are allocated for this purpose from the federal budget in the form of subsidies to different regions. The procedure for the provi-sion and distribution of subsidies, as well as the amount of the grant, is determined by the Government of the Russian Federation｡

The program objectives of resolution N0. 446 0f the Russian

Federation Government dated July 14 ， 2007 "On Stat･? ρΓogram of agricultu Γal development and regula ぴon of agricultu ΓαZμΓoducts, Γmaterials and かod for 2008-201290" are: sustainable

develop-ment of rural areas, increasing employdevelop-ment and living standards of the rural population; increase of Russian agricultural products competitiveness on the basis of financial stability and

moderniza-87 Ibid.

88  叭 切 とｙ:mJIbHbIM 38.KOH ″O Pa3 召MTMM CeubCKoro xo3hmci･ 召∂″(.FedeΓal Law Na

264-FZ ″077 the Development of Ag パｃ㎡ ￡『 ｅ』.

89 Ibid.

90 Resolution of the Government of the Russian Federation, Iloci･aHOBJI と?HMと?

/ かaBHT･? ・７z･ご7'召∂ /勿CCMMCKOM  φ?Ｊ,?β∂zμ珥  ∂/ ￣友 石7 ∂ﾉ:･CTB･?HHOii L か∂俘･∂泥吮?

戸∂Ｊ 召j7 THH  ことヨリ7 bCKOTO Xo3H MCTBa  芹 戸,?ryJIHpOBQHHH  凡XHKOB

0 ・UbCKOXOS り1MCTB と"HHOH / か の びCbipbH M LかOMOBOJIb C T BMj･ｱ ﾉﾐla 2008-2012

foabi (On State ｔｒ噌 Γαｍ of Ag パｃ㎡ ￡Γal Development and Regulation of

tion of agriculture, as well as on the basis of the accelerated devel-opment of agriculture priority sub-sectors; preservation and re-production used in agricultural production of land; and other natural resources91｡

The amount of funding in 2008-2012 years are as follows: The federal government has 551.3 billion rubles in its expenses. The Russian Federation has 544.3 billion rubles in its subjects' budgets･ At the expense of extra-budgetary resources provided to attract participants to the agricultural program from 2008-2010 was 311 billion rubles92｡

The implementation of the program is coordinated by the Russian Ministry of Agriculture. The Ministry annually prepares and publishes ａ national report on the progress and results of the Program. The expert commission, established in accordance with established procedure for evaluating the implementation of Program directions, makes ａ report containing an assessment of the results of implementation and effectiveness of the Program, the extent to which the objectives of the state agrarian policy are reached, as well as making recommendations for changing such di-rections93.

2.6. Export duties

Compare with other countries, Russia dynamically using

ex-port duties, which were first time introduced by Government

Resolution N91 from December 3P

， 1991

"On the introduction ｏ/゛

既7s･ort

taぺZかon certain goods exported from the territory of the

Russian Fed･?ration.9*"

This resolution was adopted in order to

en-sure the economic basis of the sovereignty, protect the domestic

91 Ibid. 92 Ibid. 93 Ibid.

94 International Trade Center, "Russia's Accession to the  ＷＴＯ: Major Commitments, Possible Implications," 2.

market, and improve the structure of exports. In this resolution, export taxes imposed by Council Ministers of the USSR as of 10 January 1991 N 27 have been cancelled . Currently, export customs duties are levied on the main Russian export goods like mineral raw materials, fertilizer, metals90｡

There are around 310 tariff lines subject to export duties96. The goods regulated by export duties vary from live animals to weap-ons and ammunition97. Customs duties take ａ significant place in the formation of the budget revenue of the Russian Federation.

For example, in 2008 its general budget profit rose to 35%98. In Russia, the export duties bring more income to budget revenue than import duties, which mainly come from customs duties of crude oil and natural ｇａs99.

2｡7. An overview of Russia's commitments on Trade in Services

Ｇ?x7･?Γal Agreement on Trade in Services (GATS) - multilat-eral agreement constituting the legal basis for regulating trade in services within the WTO, concluded in the Uruguay Round of mul-tilateral trade negotiations. It is an integral part of the global trading system. In the GATS, there are 29 articles divided into six sections. An integral part of the Agreement are the applications relating to certain types of services, as well as lists of commit-ments made by member countries of the WTO on access to their national markets services (sectoral ｃｏｍ ｍｉtｍｅｎtｓ). Thus, the GATS contains general provisions obligatory for all member

coun-95 Ibid.

96 World Trade Organization, "Report of the Working Party on the Accession of the Russian Federation to the World Trade Organization," 152.

97 Council of the Eurasian Economic Commission, 励 ミ 厨 乃ミ ミ 厨 乃μj7φ {The Common Customs 77 『 磴 』 加 Russian language, 2012,http:// ｗｗｗ. eurasiancommission.org/ru/act/trade/catr/ett/Pages/default.aspx.

98 International Trade Center, "Russia's Accession to the  ＷＴＯ: Major Commitments, Possible Implications," 2･

tries and specific commitments on separate sectors and types of services, fixed in separate lists. The basic provisions of GATS have some similarities with the basic principles of the GATT. In the GATS the provisions stipulate (albeit with significant differences) MFN and national treatment, and also establishthe principle of

transparency. It has proclaimed the line on the gradual liberaliza-tion of all services, established the procedure for settlement of dis-putes and conflicts, similar to mechanisms developed in the framework of the GATT. At the same time the GATS contains pro-visions arising from differences between the goods and services (for example, non-obligation of crossing the country border by service). The text of the GATS for the first time in the world gives the definition of "trade in services" and thus ｅχtends the multilat-eral agreement on the area of legal regulation of individual coun-tries. By the virtue of this, the internal economic policy measures are the subject of interstate legal field. GATS developed ａ standard form (scheme) of concessions, which are required to be used by member countries, that provide these concessions100｡

As ａ result of the Uruguay Round negotiations, the classifica-tion of service types schemes were developed, underlying the devel-opment of national schedules of commitments on services. GATS provides for further negotiations on the liberalization of trade in services. The agreement can be seen as a document that fixes the initial stage of the development of international rules governing world trade in services｡

According to the classification adopted by the WTO, financial services are divided into two major types: insurance services and insurance-related services and 2) banking and other financial serv-ices101.

100 Mitsuo Matsushita, Thomas J. Schoenbaum, and Petros Ｃ. Mavroids, The World Trade Organization: Law, P Γactice, and Policy, 2nd Edition ( Ｏｘfoｒd University Press, 2006).

In the negotiations on access to the domestic service markets, the Russian delegation was guided by the practice of the Uruguay Round of multilateral trade negotiations （fｒom 1986-1994) in de-termining the obligations of each country in this trade102. Then many GA TT participants consolidated as obligated b ｙ the national regulatory regimes, actually acting in relation to specific service sectors103｡

As ａ result of negotiations, Russia has committed itself to 1 16 service sectors of the 155 sectors contained in the WTO classifier services. In this case, the vast number of sectors does not provide any changes to the current rules of regulation in the area of bank services agreed acceptable for the domestic commercial banks level of protection. After joining the WTO, the ban of foreign bank branches opening in Russian Federation will continue, but they, as now, may establish subsidiary credit institutions with any inter-ests, including 100%, while the share of foreign capital in the total capital of the banking system in Russia is limited to 50% percent. In terms of the provision of insurance services, the conditions of foreign capital activities will be liberalized: the total quota in the sector ｗ111 rise from 25 to 50% limit on participation of foreign business in the capital of companies engaged in life insurance, and compulsory insurance will grow from 49 to 51%, and after five years, in general, will be cancelled104.

2.7.1. Development of service sector legislation

The development of the Russian service market started in the

101 Raj Kapila & Uma Kapila, 077 即 池g Develop 四 回 ￡ｓ 鈿 召anking & Financial Sector, vol. 4 (Academic Foundation, 2002), 137.

102 Obolenskiy Ｖ.Ｐ･ ， " 06a3aTejibCTBa POCCMM  Ｂ BTQ nmocbi  Ｈ MwHycbi (Russia's Commitments in the ＷＴＯ: Pros and Cons)," Russian Foreign 77Γαｄｅ Gazette ″World Economy ″ 2， no. 2 (2012):22.

103 Ibid. 104 Ibid.

beginning of the 1990s, which helped to establish new services, im-prove existing ones, and also created many laws regulating service sector100. The Russian service sector is mainly regulated by Ｇ 詞Z Codem, Federal Law on foreign?stments in the Russian

Federation10' and other legal acts. Recently, Russia tried to sim-plify its laws regulating service licensing108. Furthermore, for com-plying with Art.Ill of GATS for making more transparency and

streamlining the procedure of the registration of legal entities, ａ new Ｆｅｄ･?Γal law on State Regis ひation of Legal Entities in the Russian Federation entered into force109. During the accession proc-ess to the WTO, there were some concerns from Members of the Working Party regarding the establishment of ａ required enquiry point in trade in services for complying with Art.III:4 GA7 ・S110. The representative of the Russian Federation confirmed that from the

date of accession to the WTO, they would establish an enquiry point, which provides member countries and interested persons with the assistance to find and get copies of any measures or infor-mation related to trade in services111.

2.7.2. Russia's commitments on trade in services and example on

it's telecommunications services

In it's commitment to affect 1 16 services sectors, Russia's

105 World Trade Organization, "Report of the Working Party on the Accession of the Russian Federation to the World Trade Organization," 344･

106  召。amaaHCKMM / 畄Ｊと･ｆｃ 凡ICCHfiCK･ａｊ 叺 リ と･μ7 がmm (The Civil Code of the Russiar口 々面Γation), 1994.

107 凡?deral Law on the Foreign Investments 加the Russian Federa ぴon, No.l60-FZ, 1999.

108 World Trade Organization, Report of the Working P『 眇 凹 ￡he Accession ０/ the Russian Federation ￡ｏ 沽ｅ World 77Γαｄｅ Organization, para. 1356, 344. 109 The State Duma, Federal Law on State Reがｓ￡Γat ion of Legal Entities 加 沽ｅ

Russian FedeΓation in En がish, Law No. 72ﾀｰFZ ，･8 August, 2001･

1 10 World Trade Organization, Report of the Working P『 眇 凹 ￡加 ｊ ccession 0/ the Russian Federation to the World 77Γαｄｅ Organiza ぴon, para. 1366, 347. 111  1bid･, para. 1426, 361.

"depth" of obligations varies from sector to sector and from the ways of supply. In some sectors, ａ transition periods began, and in some areas, exceptions to the Non-Discrimination Principal were

provided. And in some cases, extra commitments (example, such as maritime transport services and icebreaking, towing and so ｏｎ) were taken, for example, prohibiting foreign ownership of agricul-tural land and land border areas (though it is possible to rent land for ａ period of up to 49 years)112｡

In the field of telecommunication services, for four years the current limitation on the participation of foreign providers in the capital of companies providing such services (49%) ｗｍ be in effect, after which time it is subject to cancellation. By this time, the regulatory regime in the services sector should be brought into full compliance with the WTO agreement on telecommunications

(Fourth Protocol of the GA TS). In some sectors, more tough con-ditions will exist for foreign suppliers than required by applicable law. This applies in particular to energy services, part of the trans-port services, and medical services. If necessary, Russia will be able to introduce ａ state monopoly on the wholesale trade of alcohol. 1n some sectors there remains ａ complete ban on foreign participation (arms trade, pyrotechnics and explosives, drugs, containing nar-cotic and psychotropic substances, precious stones and metals, ｅtc.).Ｔｈｅ nature of the reached agreements thus allows, if

neces-sary, the use of additional tools to protect the national service pro-viders from foreign competition in the future113｡

Compared with, for example, other BRICS countries, Russia has the highest amount of commitments and set the least severe

restrictions on access to providing services of the WTO foreign

1 12 International Trade Center, "Russia's Accession to the  ＷＴＯ: Major Commitments, Possible Implications," 25･

1 13 Obolenskiy Ｖ.Ｐ･ ， " 06a3aTejibCTBa POCCHH  Ｂ BTQ nuiocbi Ｈ MwHycbi (Russia's Commitments in the ＷＴＯ: Pros and Cons)," 23.

members. For example, India has provided a very serious limita-tion of forms of commercial presence, in accordance with which the private service provider can only be ａ company registered in India, with total foreign participation in the capital of which not to ex-ceed 25%114｡

１ｎ Brazil, commitments were secured exclusive rights to the national telecommunications company EMBRATEL, as well as

provided a limited direct or indirect participation of foreign inves-tors in equity shares of telecommunications companies in the

amount of 49%115｡

As for China, the activities of foreign telecommunications

companies in its territory shall be allowed only in the form of ａ joint venture. In this case, with respect to such a joint venture, re-strictions are on geography providing telecommunications services and from the participation of foreign persons in the joint venture116｡

One of the most severe restrictions on access of foreign per-sons to providing telecommunication services is provided in the ob-ligations of the Republic of South Africa. For ａ long period since the entry of South Africa into the WTO international traffic infor-mation could be carried out exclusively using networks of national operator Company Telcom. Only at the end of such a period were the tolerances allowed on the market of the second operator. South Africa also has fixed the maximum foreign ownership (foreign in-vestment) in equity telecommunications service providers at the level of 30%117. Thus, among the BRICS countries, Russia has

estab-1 estab-14 httpｓ://ｗｗｗ.ｗtｏ.ｏｒｇ/English/tratop_e/serv_e/telecom_e/telecom_commit exempt コist e.htm

115 U.S. International Trade Commission, "Recent Trends in U.S. Services Trade," May 1998, 4-32.

1 16 United States General Accounting Office, World 77Γαｄｅ Organization Analysis cｿChina's Commitments to Other Me 附 加rs, 2002, 80.

117 U.S. International Trade Commission, "Recent Trends in U.S. Services Trade," 4-88.

lished one of the most favourable regimes for the admission of

for-eign companies in its telecommunications services market.

2.7.3. Insurance services

As of January 1 ， 2013, foreign investment accounted for 1 7.4 196 of the total authorized capital of Russian insurance compa-nies. Nevertheless, one of the conditions of membership in the

WTO was to increase the quota for foreign capital from 25% to 50 °/o118｡

On December 25 ， 2012, an amendment to the law "On the or-ganization ofinsu Γance business in the Russian Federatio がwas introduced, according to which the maximum possible total amount of foreign investment in Russia's insurance sector amounted to 50% of the total amount of the authorized capital of Russian insurers. However, the formula for calculating the quota has not been elucidated｡

According to the report of the Working Group on accession, foreign investments are not considered foreign investments into the Russian insurance sector before January 1st, 2007, and any foreign investments into Russian insurance companies will be pri-vatized after Russia's WTO accession, that is, after 22 August 2012120. In addition, some Russian insurers in which foreign inves-tors own more than 51% of the capital share for at least 12 years after January 1 ， 2007, will not be considered as companies with foreign investments for the purposes of calculating quotas121. Finally, the increase of the authorized capital from the company's

1 18 Leonid Zubarev, "Russian Insurance Market and the WTO," CMS International, December 2013.

119 KOHC TM TyiiHH PocCMMCKOM φとり7と･μ,9がmm (Constitution of the Russian 冫冫面Γαぴon), 1993.

120 World Trade Organization, "Report of the Working Party on the Accession of the Russian Federation to the World Trade Organization," 352.

own funds with foreign investments, as well as from revenues re-ceived from Russia (funds reinvested in Russia) and investment by Russian subsidiaries of foreign investors will be involved in calcu-lating the amount of the quota not as ａ foreign investment, but as ａ domestic investment122. At present, the rules for calculating

quo-tas have not been established. According to the law, the Central Bank of Russia as ａ regulator of the insurance market should de-velop rules for calculating quotas; however, this work has not yet begun123.

2.7.4. Bank service

Russia's accession to the WTO didn't have ａ significant impact on the banking sector. Conditions of foreign banks' access to the Russian market, as ａ whole, remained the same: WTO members agreed that foreign banks, as before, will not be able to carry out their activities in Russia through its subsidiaries. This agreement has been reflected in the draft law, published on December 22 ， 2011 0n the official website of the Ministry of Finance of the Russian

Federation. According to the draft law of the Russian legislation, deletion of the term "subsidiary of ａ foreign bank" referred to, in particular, the Federal Law ¨０ 箟 召αが?s and 召αｎ/?ing Activity' was proposed124. However, foreign banks will be able to operate on the territory of the Russian Federation through the Russian represen-tative office or subsidiary bank registered in Russia. It should be noted that the representation of ａ foreign bank can only be created for representational functions120｡

During the negotiations, some WTO members have expressed

122  Ibid., 354.

123 Leonid Zubarev, "Russian Insurance Market and the WTO." 124 Russian Federal Law on Banks and Banking Activity, 1990･

125 Marina Maksimova 厂'New Law Bans Foreign Bank Branches in Russia," 沢回ｓ沁 召eyond theﾌﾐleadlines, March 22 ， 2013, http://rbth.com/business/2013/ 03/22/new コawjDans_foreignjDank_branches_in_russia_24171.html.

their concern about the amount of participation of the Central Bank of the Russian Federation ("CBR") in the capital share of Open joint-stock company Sberbank (the largest commercial bank in Russia), constituting 60.25% of the total number of shares is-sued. According to the delegates, the Russian Federation, in the

face of CBR owning more than 50% of OJSC "Sberbank" shares, in-directly guarantees the repayment in full of funds placed in depos-its in this bank. This fact can be seen as ａ restriction of competition on the bank services market. In addition, in this case, a "conflict of interests" may occur between the control (supervi-sory) functions of CBR and status of shareholders of OJSC "Sberbank," which operates on the CBR-controlled market. Thus, the Protocol reflects the requirement for the Russian Federation to eliminate the circumstances that restrict competition in attracting funds on deposit126｡

In response to these comments, CBR officials mentioned ａ pos-sible sale of ａ part of JSC "Sberbank" shares in the open market･ With the sale of more than 7.5%of the shares on the stock e χ-change, the Russian Federation has fulfilled one of the conditions of entry into the ＷＴＯ｡

The government of the Russian Federation reserved the right to set a limit on the size of foreign capital in the banking sector to 50%. However, foreign investments made before January 1 ， 2007, as well as foreign capital involved in the privatization of Russian

banks after Russia's WTO accession, will not be counted for pur-poses of calculating this indicator12'.

126 World Trade Organization, "Report of the Working Party on the Accession of the Russian Federation to the World Trade Organization," 349･

127 Shabanova Inara 厂' ripo6 ji eMbi ＨｐａＢｏＢｏΓｏ ＰｅΓyjlHpOBaHHH PbiHKa EaHKOBCKM χ YcjiyΓ Ｂ CBH3H Ｃ BcTynneHHeM POCCMM Ｂ BTO (The Problem of Liberalization of the Bank Service Market in the Light of Russia's WTO Accession)" (Kutafin Moscow State Law University, 2010).

2｡8. An overview of Russia's commitments on Trade Related Intel lectual Property Rights

2.8.1. Development of IP law in Russia

In Russian legislation, the measures of protection and enforce-ment of intellectual property rights (IPRs) are provided under civil, administrative, and criminal p ｒｏｖisｉｏｎs128. The basic princi-pies of civil law protection of IPRs were enshrined in the Constitution of the Russian Fedi?ration129. ０ｎ the 1st January 2008 ， Part IV of the Russian Civil Code was entered into force and

re-placed the following laws on IPR protection: 沽ｅ ｔ ｄ･?nt Law, the Law of th･?Russian Federation "On T,Γademarks, Service Marks, and Appellations ｏ/゛ Origin of Goods" the Law of the 沢ussian Federation "On C 叩yright and 沢elated Rights", the Law ″On the Legal Protec ぴon ｏ/゛ Comput･?ｒ Programm･?s and Data 召ases", the Law of the Russian Federation ″Ｏｎ Legal Protec ぴon of Layout Designs ｏ/匸Integrated Circuits", and the Law of the Russian Fedi?ration "On Attainments in Seh?ction.m" Furthermore included in Part IV of the Russian Civil Code were the main international agreements in the IP field, such as 召erne Convi?ntionVi ＼ TRIPS Agreem･?ntm, Paris Ｃｏｎａ?ntionVii and so on134｡

Most of the TRIPS requirements were taken into account in

the development of Part IV of the Russian Civil Code. However,

128 World Trade Organization, Repor ￡ｏ/ ￡加 Ｗｏ順 加ｇ ？『ty on t加Accession 可

the Russian Federation ￡ｏ 沽 ｅ World 77 Γαｄｅ Organization, para 1201, p. 309,

November 17 ， 2011.

129 Cons ぴ 詒 ぴon ｏ/ ￡he Russian 74?deration, section １， Art.44, 1993.

130 World Trade Organization, Repor ￡ｏ/ ￡he Work 加ｇ ？『ty on ￡加y ｌ ccession 0/

the Russian Federation to the World 77 Γade Organization, para. 1203, 310.

131 "Berne Convention for the Protection of Literary and Artistic Works,"

September 9 ， 1886･

132 WTO, Agreemen ￡077 77Γαｄｅ一月elated ｊ ｓμ?cts ｏ/’ Intellectual Prope?rty Rights,

1994.

133 Paris Convention かr the Pro ￡ｅ山 ｏ of Indus ￡ｒ捌 丹 叩 ｅｒり, 1883.

134 World Trade Organization, Report of ￡加Working P『ty on t加Accession ０/