FAS Forms Working Group for Developing Competition in Machine-Building
OREANDA-NEWS. January 17, 2012. Members of the Expert Council at the Federal Antimonopoly Service (FAS Russia) for Developing Competition in Machine-Building discussed the Protocol of Accession of the Russian Federation to the World Trade Organisation (WTO), reported the press-centre of FAS Russia.
Representatives of FAS Russia, the Ministry of Economic Development of the Russian Federation, the Ministry of Industry and Trade of the Russian Federation, the Secretariat of the Commission of the Customs Union, “Rostechnologii” State Corporation, “ROSNANO” OJSC and representatives of various enterprises and associations in machine-building industry took part in the work of the Expert Council.
Summarising the situation on some sectors of machine-building, representatives of the authorities estimated positive effects from joining WTO. First of all, it’s reducing protective barriers that will encourage free movement of goods on the market of different countries and intensify competition on them. It should create additional incentives for domestic companies to increase competitive ability of their products.
At the same time, joining the WTO causes a number of concerns amongst representatives of various companies in machine-building industry. In spite of a considerable negotiations period about Russia joining the WTO, some domestic companies are not ready for potential changes on the market.
First of all, it concerns manufacturers of high-degree processing products oriented to domestic market, because it is expected that competition will intensify precisely in this sector.
Members of the Expert Council pointed out that one of such sectors is the national bearing industry, the products of which are losing their positions on the market. At the same time, global markets have extensive under-loaded production capacities that can be promptly reoriented towards producing products for Russian consumers.
However, WTO mechanisms allow to promptly introducing protective and antidamping measures in the country. Also Russia reserves the right to limit participation of foreign companies in public procurement.
To ensure timely protection of Russian industry it is necessary to analyse competitive ability of every sector, and make decisiond about protective measures upon these findings.
Members of the Expert Council proposed to combine efforts of all federal bodies, that to a greater or lesser degree have an effect on national economy, as well as representatives of business community in this field. It is important to ensure that the existing threats are “transformed” into incentives.
The Expert Council made a decision to form a Working Group that would discuss the issues of concern in more detail and determine the avenues for resolving them for each sector of machine-building.
“The Working Group shall become a platform for discussing the issues of Russia’s accession to the WTO and devising proposals for taking the necessary measures towards promoting domestic goods on the global markets as well as protecting Russian producers. Based on the results of its work, relevant proposals will be forwarded to the interested federal executive bodies, the Commission of the Customs Union, as well as the Government of the Russian Federation”, said Deputy Head of the FAS Department for Control over Industry and Defence Complex, Andrey Greshnyev.
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