ASSOCIATION OF EUROPEAN BUSINESSES IN THE RUSSIAN FEDERATION The Voice of European Business in Russi

1
ASSOCIATION OF EUROPEAN BUSINESSES IN THE
RUSSIAN FEDERATION The Voice of European
Business in Russia
Antidumping and Safeguard Cases on the Eve of WTO
Accession Moscow 6th June 2005 EC Delegation
2
THE AEB
Representing and Promoting European Business in
the Russian Federation since 1995 through

• Effectively improving the business and trade
  environment in the Russian Federation for
  European companies
• Promoting integration and partnership between the
  Russian Federation and the European Union for the
  benefit of EU based companies

3
COMMITTEES THE WORKFORCE OF THE AEB

• Meet, talk, share experience, solve issues
• Network introduction to other industry
  executives or experts in other fields
• Identify issues for further development
• Carry through Committee Chairmen, management and
  board to Federal and Regional Authorities, EC
  Officials short term, long term

4
COMMITTEES
5
1. LOBBYING

• The AEB represents European businesses by
• Identifying the principal business and
  legislative issues affecting European business,
  through AEB Committees and Working Groups
• Addressing current issues and influencing
  legislation on longer term issues through
  the European Union authorities and direct to
  Russias political and business leaders
• Cooperating with RF Authorities, European Union,
  Foreign Investment Advisory Council (FIAC),
  Industrialists Round Table (IRT), etc.
• Day to day issues supported through links to
  Oblast government and Moscow authorities (Customs
  hotline, visa taskforce, etc)

6
2. INFORMATION

• The AEB updates business on industrial,
  economic and legislative developments through
• Open Meetings, Briefings, Seminars and
  Conferences
• Quarterly Market Updates and yearly Position
  Papers
• Independent Surveys (eg. Benchmarking Survey,
  OECD)
• AEB Website industry and market developments,
  business news

7
3. NETWORKING

• Committee level closed or open meetings
• Conferences, presentations
• Social events primarily Euro-Receptions
• Online Member database
• Members directory

8
4. COOPERATION WITH EC DELEGATION

• Critical Link between EU authorities, Russian
  political and administrative institutions and
  European business interests
• March 16 2005 Dialogue with European Business
  - open meeting between the AEB and RF Minister
  for Economic Development and Trade, German O.
  Gref
• March 18 2005 EU Business in Russia - AEB
  industry heads and EU Delegation briefed EU
  Commissioner for Trade, Peter Mandelson at the
  start of his mission to Russia
• The AEB
  constitutes the most trusted and qualified
  central information source on European business
  in Russia for both the EU and Russian
  authorities, as well as for Member companies

9
Antidumping/Safeguards Setting the Scene

• European Business in Russia
• Solid base and growth over 50 of Russias
  external trade is with EU
• Booming 70-90 of AEB members expect increased
  turnover and profits in near-medium future
• General drift of legislation appropriate, (tax
  and customs reforms particularly successful),
  though slow and limited in strategic
  industries
• Great for auto, retail, ag, logistics, real
  estate
• Tougher going for IT, telecom, pharma, banking
• But bureaucracy and corruption worse
  implementation issues issues not
  insurmountable, though press poor doubts
  resurfacing

10
Antidumping/Safeguards

• Dumping
• WTO allows governments to act against dumping
  where there is genuineinjury todomestic
  industry
• methods to calculate normal valueprice in
  exports domestic marketin another
  country.calculation of costsand normal profit

11
Antidumping/Safeguards

• Safeguards
• WTO member may restrict imports of a productif
  domestic injury is injured or threatened with
  injury caused by a surge in imports
• industries or companies may request safeguard
  actionemphasis is on transparency and on
  following established rules and principles
• evidence must include arguments on whether a
  measure is in the public interest
• cannot be targeted at imports from a particular
  countryquotas can be allocated among supplying
  countries, including in the exceptional
  circumstance where imports from certain countries
  have increased disproportionately quickly

12
Antidumping/Safeguards

• Case Study
• Oct 2004 MEDT launches investigation
  increased imports of GLS (incandescent) lamps
• Initiated by Mercata (acquirer of 3 of 4 Russian
  GLS plants), holding gt80 of GLS market
• In parallel, governemnt launches initaitves
  across lamp segment without consultation

13
Antidumping/Safeguards

• Case Studycont
• Safeguards applied
• Issue is substantial increase in low-end,
  low-price Chinese imports
• safeguards cannot be targeted at imports from a
  particular country
• Parallel Government decree raises duty on all
  imports
• Dumping not addressed

14
Antidumping/Safeguards

• Case Studycont
• Result
• Importer hit across product range
• Domestic monopolist protected against low end and
  high tech pressure
• Consumer and technology leaders hit likely to
  reduce presence in Russia

15
Antidumping/Safeguards

• Conclusion
• The objective of the common economic space is to
  create an open and integrated market between the
  EU and Russiabring down barriers to trade and
  investment and promote reforms and
  competitiveness, based on the principles of of
  non-discrimination, transparency and good
  governance.

Council of the European Union Moscow, 10 May 2005
16
AEB SPONSORS
17
CONTACT DETAILS

• Address 4th Tverskaya-Yamskaya 21
• 125047 Moscow
• Russia
• Tel [phone]
• Fax [phone]
• E-mail info_at_aebrus.ru
• tessa.abrahams_at_aebrus.ru (Membership
  Development)
• emmanuelle.roemer_at_aebrus.ru (Membership
  Development)
• andreas.romanos_at_aerbrus.ru (Chief
  Executive Officer)
• Website http//www.aebrus.ru