EEC expects Kazakhstan to submit WTO approved import duty rates soon
MOSCOW. June 26 (Interfax) - The Eurasian Economic Commission expects Kazakhstan to submit import duty rates approved as part of the country's accession to the World Trade Organization and an adjusted unified customs tariff for the Customs Union in the next two weeks, EEC Trade Minister Andrei Slepnev told reporters Tuesday on the sidelines of a conference in Moscow on Russia's membership in the WTO and its anticipated impact on the Russian and global markets.
"Kazakhstan could quite realistically join [the WTO] this year. This requires a certain adjustment of the unified customs tariff (UCT), as Kazakhstan held negotiations earlier [on forming the Customs Union]," Slepnev said.
He said the UCT will be adjusted proportionately to the size of Kazakhstan's economy compared to the economy of the Customs Union. "That is, if the UCT is 10% but Kazakhstan has agreed to 0%, this does not mean that we lower to 0%. We proceed from the fact that Kazakhstan's weight in the total Customs Union market is about 10%, consequently we come down by one percentage point," Slepnev said.
Asked about the number of UCT items on which import duties will be reduced as part of Kazakhstan's accession to the WTO, Slepnev said the EEC does not yet fully understand the level of Kazakhstan's obligations.
The suggested that for the tariff adjustment goods will be split into two groups: sensitive and nonsensitive. Individual methods will be used in lowering tariff protection for each of these groups. For nonsensitive goods, the method might be simplified, while for sensitive goods where the interests of specific WTO members are affected might need itemized consideration and decisions. Russia might not be willing to lower tariff protection on a number of items even taking into account Kazakhstan's economic weight. "Then we will just find some kind of cross exchanges with WTO members that will make them happy," Slepnev said.
He said the EEC has begun discussing a new UCT presented by Russia about a week ago within the context of accession to the WTO. The tariff to be submitted by Kazakhstan will represent an additional reduction of import duties.
It was reported earlier that once Russia joins the WTO, tentatively at the end of August, the level of tariff protection will drop from 10% last year to 7.5-7.8%. Slepnev said earlier in an interview with Interfax that Kazakhstan's accession to the WTO is expected to reduce the level of tariff protection by 0.5%-0.75%. However, he speculated that the arrangement for the WTO accession of the third Customs Union member, Belarus, would be different. "Belarus could probably join on the conditions that will result after Kazakhstan's accession," he said. Changes will apply exclusively to straightening out the Belarusian economy in order to bring it in line with the mechanisms accepted within the WTO.