Russia has decided to join the trade war that unleash US. As announced on 19 June the Minister of economic development Maxim Oreshkin, Moscow will soon introduce additional import duties on American goods having analogues in the Russian market, in response to the US tariff on steel and aluminum.
“Due to the fact that the United States continue to apply protective measures in the form of additional duties on imports of steel and aluminum, and refuse to provide compensation arising from the loss of Russia, Russia will use its rights under the WTO and introduces balancing measures in respect of imports from the United States. These measures are in the form of additional import duties on American goods will become applicable in the nearest future”, — said Oreshkin.
According to the WTO rules, if one country introduces restrictive tariffs, it should compensate the negative effect, for example, trade benefits on other categories of goods. As the US is nothing like that suggested Russia made the introduction of “substantially equivalent” response, as stated in its notification to the WTO.
The head of the MAYOR stressed that because the duty will only apply to products that have analogues in the domestic market, they will not have a negative impact on macroeconomic indicators.
Although the full list of goods that will be subject to the duties, will be formed in the Ministry for several days, the head of the MAYOR disclosed a single category, which will impose duties. This is the building-road technics from the USA. But American medicine is stressed., the list will not.
In 2017, according to customs statistics, Russia imported from the United States bulldozers, graders, excavators, road rollers, etc. for $ 104 million. not counting the components. According to the us government website Export.gov which is maintained by the U.S. Department of Commerce, the total size of the domestic road construction market amounted to 1.7 billion dollars, of which about 270 million dollars. — import from USA.
Recall that in March, the US imposed import duties on steel and aluminum in the amount of 25% and 10% respectively. A number of countries, including the EU and Canada, was given a reprieve, but in the end, from June 1 restrictions spread on them. In response, the European Union has set a fee at the rate of 25% on a number of American goods with a total volume of 2.8 billion euros. The intention to enter the response also said India, Turkey, Mexico and other countries.
Russia in this trade war with the United States plays first fiddle. Back in the spring, the MAYOR estimated that the damage from restricting exports of metals will be 537,6 million dollars. Retaliatory duties will be imposed in the amount of $ 93 million, as in the first stage, according to the WTO rules, the balancing measures are limited.
For comparison, China, the main trade-economic partner of the United States carries a much greater loss. In early June, U.S. President Donald trump announced the introduction of fees in the amount of 25% on imports from China at $ 50 billion., and on June 19 instructed the administration to prepare a new list of restrictions on imports from China in the amount of $ 200 billion.
Unlike China, the volume of Russian-American mutual trade simply will not allow Moscow to strike a painful blow to the United States. The already small turnover decreased markedly after 2014 and by the end of 2017 amounted to 23.2 billion dollars. (although this improvement in 2016 14.4%). Russia’s exports to the U.S. amounted to 10.7 billion dollars, import — 12,5 billion.
In the structure of Russia’s imports from the U.S. in 2017, the main part of deliveries accounts for machines, machinery, equipment and vehicles (44,38%), chemical products (16,31%), food and agricultural products (4,34%). If to speak about figures, last year to Russia from USA imported goods under article “aircraft and spacecraft suborbital and spacecraft launch vehicles” 3,463 billion dollars, vehicles for the transport of persons on 0,8 billion dollars, and also spare parts for motor transport 0.4 billion.
Lecturer Institute of business and business administration (ibda) of Russian Academy, candidate of economic Sciences Galina Kuznetsova is convinced that the mutual duties will remain almost invisible for both the United States and Russia.
— I believe that it is primarily a political gesture. It is very important to Express yourself and to show that we too can enter a response. But the fact is that the United States is for Russia to import is a medium and not a key partner. And for the United States is Russia a partner generally is not noticeable. We are not in the top twenty in terms of turnover, so the Russian Bureau of statistics did not even give his review. The United States market is so huge, and our turnover is so small that for them, as for the state, our retaliatory duties will be absolutely not noticeable. Perhaps some specific companies that worked with us, supplied the same equipment from Caterpillar or John Deere tractor, will feel these duties on himself, not more.
“SP”: — what can you say about our economy, will not lose if we needed goods through their own limitations?
For us, in my opinion, these restrictions are also not sensitive. First, we are not so many buy American construction and agricultural equipment. Secondly, it is always possible to buy in another market. This is not a unique product, and easily replaceable article.
For example, Caterpillar is now produced everywhere in China, and in Brazil and in Korea. USA today is trying to impose sanctions on the company in any way associated with Russia or our businesses. I do not exclude that we in turn can do the same thing with some types of American art, actually abandoning her. But it is not critical. Instead of a Caterpillar, we can buy Japanese Komatsu, which is interchangeable. Not to mention the fact that we are trying to improve the production of those tractors.
Please note that we are not talking about high technology. I’m sure in the final list will not be articles of the aerospace industry, for scientific research and other activities. We will not limit ourselves in such essential articles.
“SP”: — That is a tangible impact from our imposition of duties would not be?
Politically this statement was made. However at all desire we can not give US a symmetrical economic response. For both economies this event will remain unnoticed. But since we can’t be silent all the time, it was decided to take this step. Although, might even ignore this question, because in the end our response is only to give the soil and information reason for endless comments about how we are economically weak compared to Americans.
However, economic and trade war, China and the United States, which is rapidly gaining momentum, too, may soon be curtailed. As suggested by several experts, including Donald trump wants tough measures to bring down the relations between the two countries that are economically highly dependent from each other (the turnover of the US and China in 2017 amounted to $ 600 billion, China is the largest holder of us foreign debt), but only trying to strengthen the negotiating position.
Financial legal Director of BMS Law Firm Yuri Stepanov believes that the parties would reach a compromise.
— Russia plans to raise duties on goods from the United States as an answer to export duties on steel and aluminium from Russia. Previously it was announced that duty would relate to the construction and road building machinery. However, the trade with the United States in these areas is not so much to these actions has had any noticeable impact. As for the confrontation between the U.S. and China, it is unlikely that it will have a great development. Most likely, the parties will soon agree on a compromise terms of cooperation because of mutual constraints that would officially no stated both sides is not beneficial to anyone.
© 2018, z-news.xyz. All rights reserved