Why Europe complains to the WTO about the revival of Russian industry

Brussels appealed to the WTO with a complaint about the so-called discrimination that Russia is showing towards European goods and their manufacturers in violation of its obligations within the organization. Obviously this is a direct result. policy counter-sanctions and import substitution, which Moscow took after the events of 2014. But what have we actually managed to achieve over the past seven years, and what can we expect from trade litigations with the European Union?

I would like to remind you that when Russia introduced counter-sanctions against the EU countries, there were many ironic comments. Say, a few farmers and gardeners will cry, and then reorient their products to other markets, and the Russians will be left without apples, oysters and ham. But, according to the data of the European Commission, the total economic damage between 2015 and 2019 amounted to 290 billion euros. Not weak. So what exactly are Brussels' claims?

The first complaint of European officials is that Western companies are now discriminated against even at the stage of evaluating the application, since the cost of some commodity items for domestic companies with state participation receives a subsidy of 15%. The EU believes that this puts foreign companies at a disadvantage. The second claim consists in a special list of 250 goods, where up to 90% of items must be Russian-made. These quotas apply to, for example, cars, medical equipment, textiles and more, and they apply to state-owned companies. And the third complaint is the need to obtain prior permission from the relevant authorities for the purchase of machinery equipment abroad. Thus, there is indeed a certain protectionism, but carried out not in a hard, but in a soft form. In the event of a real trade war, Russia would simply close off foreign companies' access to its domestic market or introduce protective duties. But Moscow is not doing this yet. Why?

Let's try to evaluate the results of the import substitution program without unnecessary emotions. And they do not look entirely unambiguous.

On the one hand, over the seven years that have passed since the beginning of the aggravation of relations with the United States and Europe, we have been able to achieve quite a lot in agriculture. The greatest success was achieved in the meat industry: imports of pork fell 10 times, beef - 2,5 times, poultry - 2 times. Imports of milk and dairy products decreased by 20%, and various vegetables by 27%. For fruit and berry products, the reduction was the most modest - only 11%. At the same time, Russia is one of the recognized world leaders in the cultivation of various grain crops. That is, if we can feed ourselves, we will not be left without a crumb of bread. The food security of the country is generally ensured.

On the other hand, the introduced counter-sanctions had their own negative effect. The puzzled question why folk carrots and potatoes in Russia can be more expensive than exotic southern bananas was even asked to President Putin. The closure of imports from European countries in a number of cases led not to import substitution, but to import substitution. So, instead of Norwegian fish, we began to buy it from distant Chile. At the same time, Santiago himself has tripled the volume of purchases of herring from Oslo. To be honest, this scheme smelled like “Belarusian shrimps”. By the way, it is Belarus that is one of the main beneficiaries of the Russian policy of counter-sanctions. In addition to the aforementioned shrimps, other sanctioned European food products were also repackaged here. The share of Minsk in our food imports increased from 13% in 2013 to 40% this year. Also, European suppliers were replaced by manufacturers from China and Latin America. For the domestic consumer, in practice, this means an increase in prices on the shelves. This means that we are not able to completely replace the entire line of food products, since bananas do not grow very well in Russia, and if they were grown in the southern regions, the production of these fruits would still be uncompetitive.

The situation is even more complicated in industry. One of the main domestic "reformers" Yegor Gaidar once wisely taught us that we do not need any domestic machine tools, we will buy everything we need for petrodollars in the West. And now we are critically dependent on the supply of imported equipment. According to statistics, in 2013, the share of foreign machine tools in Russia was 48,6%, and by 2018 it dropped to 47,3%. Not to say that there has actually been a significant breakthrough. The main supplier of industrial equipment for us is Western Europe, China and India are considered as alternatives, but the quality equipment there is noticeably lower.

The revival of the domestic machine tool industry is the most difficult state task that requires an integrated systematic approach. Moscow simply cannot afford to abandon the import of Western equipment at once, so it is forced to resort to the methods of “soft” protectionism. In Brussels' complaint to the WTO, one can see the desire of European manufacturers to maintain their positions in the Russian market.
Dear reader, to leave comments on the publication, you must sign in.
  1. kapitan92 Offline kapitan92
    kapitan92 (Vyacheslav) 21 July 2021 13: 12
    One of the main domestic "reformers" Yegor Gaidar once wisely taught us that we do not need any domestic machine tools, we will buy everything we need for petrodollars in the West.

    Did Gaidar's "associates" in the government decrease? They moved the beds, and that was the end of it.
    "Chubaisyata", "Siluanism"?

    The revival of the domestic machine tool industry is the most difficult state task that requires an integrated systematic approach.

    It's right! Only a systematic approach to solving this problem is not visible. hi
    1. Bulanov Online Bulanov
      Bulanov (Vladimir) 21 July 2021 13: 19
      And if the State Planning Committee worked at least 50% in the country, then it would be possible to plan and build without fail at least 1-2 machine-tool factories per year.
      1. Alexndr p Offline Alexndr p
        Alexndr p (Alexander) 21 July 2021 13: 40
        to build without fail at least 1-2 machine-tool factories per year.

        Yes, you need ten at once! and an instruction to prohibit the use of foreign machines and all sorts of Siemens - and immediately build a huge warehouse - where the factories will send machines.

        Then there will be a reversal. True curve and through one place.

        PS Order of the Government of the Russian Federation of November 5, 2020 No. 2869-r On approval of the Strategy for the development of the machine tool industry for the period until 2035

        Everything has already been invented and thought out before the article. As well as by what methods to work with the WTO and benefit from it.
        1. SASS Offline SASS
          SASS (Sass) 21 July 2021 21: 18
          And recruit workers, engineers, foremen from bulk? #Onizhevlast ...)))
      2. dub0vitsky Offline dub0vitsky
        dub0vitsky (Victor) 21 July 2021 23: 18
        And without this monster, writing paper, and not doing anything in a real way, it is not clear what needs to be built? Where to get loot, equipment, and smart specialists? Temporary workers in ministries are waiting for retirement age. Surplus profits from the export of energy resources are thrown into stabilization funds, so as not to accelerate inflation, they report (as it was all these years in the USSR - REPORT, HIS MAJESTY !!!!!!!), in restraining it, mother grow up, at the level of 6%, making a profit of 1 ... 3% per annum, and borrowing from them, from their enemies, but already at 7% per annum. Orya, like lepers on the oligarchs doing exactly the same thing, exporting the loot to foreign accounts. An amazing country. It is a pity that they did not find out from the Malchish-Kibalchish his innermost military secret. When will it ... stop?
  2. steelmaker Offline steelmaker
    steelmaker 21 July 2021 18: 48
    The article is somehow shameful. More like a petty toady. The facts are generally sucked out of the finger. The author has changed himself. I'll just list the news:

    The Ministry of Industry and Trade proposed to simplify the export of platinum and rare earth metals from Russia. Officials want to issue general licenses allowing the unrestricted export of raw materials from this group. In exactly the same way, in 2020, the Central Bank abandoned one-time gold export licenses and allowed to issue general licenses. As a result, $ 18,5 billion worth of gold was exported from the country.


    About the Transsib and jobs for the Chinese. Another official adds - And there was also a problem with the labor force. Now 9 thousand people are working on the construction of the Transsib. And to accelerate, you need 6 thousand more. And you need to very quickly - by the beginning of August.

    And the president casually replies, "Hire the Chinese!"


    Chinese OSB sawdust at a price of 2600 rubles per sheet, further is even better


    We do not just buy imported machines - we buy a huge number of imported machines. Judge for yourself (approximate alignment in recent years):

    rubber processing machines - 100% import,
    plastics processing machines - 99% import,
    optical glass processing machines - 100% import,
    machines for processing ordinary glass - 90% import,
    stone processing machines - 90% import,
    woodworking machines - 80% import ...
    Simpler and cheaper machines come from China. More sophisticated and more expensive machines come from Japan, Germany, Italy, France ... The situation is not just difficult - the situation is also risky:


    Great Chinese "water pipeline from Baikal. China has already been given a part of Russia, now hands have reached Baikal.


    Mishustin told who withdraws the most money from Russia
    Russian companies transferred 4,3 trillion rubles in dividends, interest and royalties abroad

    1. 123 Offline 123
      123 (123) 22 July 2021 21: 13
      And the president casually replies, "Hire the Chinese!"

      Sorry for the curiosity, do you have more reliable sources? The fact is that Zen is a fence on which everyone is free to write whatever they want. It's like referring to the conversation of the grandmothers at the entrance. You can start your own channel, there will be no problems with quotes, it is so convenient to refer to yourself smile

      Chinese OSB sawdust at a price of 2600 rubles per sheet, further is even better

      By the way, what did you find terrible in Chinese plywood? Prices for building materials are growing all over the world, in such a situation, imports will not hurt at all to stabilize prices. If you limit it, the price will be even higher. And it is not possible to increase production instantly. Even rabbits need time to breed.
      By the way, do you know how the United States reacted to the price increase? They doubled the duties on the import of sawn timber in May. laughing
      1. steelmaker Offline steelmaker
        steelmaker 22 July 2021 21: 25
        Tell me your truthful sources, where they refute my information. And you don't need to tell me about the United States, I know perfectly well that you know about the United States.
        1. 123 Offline 123
          123 (123) 22 July 2021 22: 32
          Tell me your truthful sources, where they refute my information.

          Was that information? Sounds like rumors. In general, an interesting approach, you are throwing some kind of crap, and I have to refute it all? If you check and refute everything that is wrong, life is not written in Zen. Let's have a normal source, let's talk. And to refute what is scrawled on the fence, it's you yourself.
          If you want, let's start with the railroad. By the way, to attract the Chinese to such a crazy idea as you think. The road is needed quickly. There are already military and prisoners building. You cannot be pulled out onto the track because of the computer, and there you need first of all specialists and not on moving sleepers from place to place. And the Chinese are among the leaders in this industry.
  3. Siberian southerner (Sergey A) 29 July 2021 07: 12
    Remove import owners from the management of our enterprises and their stupid rules.