Russia’s plastic industry and WTO
time2012/01/13
Dec. 16, 2011,the Russia joined the WTO. It is a big event to the world. Russian market is a big market in the world.
We believe that it will bring big influence to the plastic industry in Russia. There are some reports,let check it together.
The Russian polymers market is on the verge of big changes, due to the long-awaited accession of Russia into the World Trade Organization (WTO).
As part of the agreement, within two to three years of accession Russia will reduce import duties on basic polymers from the existing 10 percent to 6.5 percent. However, duties on basic polymers including polyethylene, polypropylene and PVC in 2012 will remain at the current level. PET import duties will be reduced from 5 percent to 4 percent in 2013.
The duty on plasticized and unplasticized PVC will be reduced from 10 percent to 6.5 percent in 2013. In 2015, the same duty cut will apply to polyvinylacetate, copolymers of vinyl acetate and polyurethanes, and in 2016 it will apply to fluoropolymers.
Duties Reduced Also, between 2014 and 2018 duties on imports of such polymeric products as pipe, film, plates, sheet and packaging are expected to be reduced from the current 10 percent to 6.5 percent.Russian polymer market experts have divided opinions about the future impact of WTO accession.
Some say a sharp increase in imports will not lead to lower prices, as might be expected, but will instead benefit the profits of sellers. This is what has happened in Georgia and Ukraine, they say.In addition, it will have a negative impact on domestic production of polymers, the operating costs of which are still high and the quality of which are generally low in comparison with international standards.
As part of the agreement, within two to three years of accession Russia will reduce import duties on basic polymers from the existing 10 percent to 6.5 percent. However, duties on basic polymers including polyethylene, polypropylene and PVC in 2012 will remain at the current level. PET import duties will be reduced from 5 percent to 4 percent in 2013.
The duty on plasticized and unplasticized PVC will be reduced from 10 percent to 6.5 percent in 2013. In 2015, the same duty cut will apply to polyvinylacetate, copolymers of vinyl acetate and polyurethanes, and in 2016 it will apply to fluoropolymers.
Duties Reduced Also, between 2014 and 2018 duties on imports of such polymeric products as pipe, film, plates, sheet and packaging are expected to be reduced from the current 10 percent to 6.5 percent.Russian polymer market experts have divided opinions about the future impact of WTO accession.
Some say a sharp increase in imports will not lead to lower prices, as might be expected, but will instead benefit the profits of sellers. This is what has happened in Georgia and Ukraine, they say.In addition, it will have a negative impact on domestic production of polymers, the operating costs of which are still high and the quality of which are generally low in comparison with international standards.