Customs Union Update: Russia’s Average Tariff Burden Could Fall Under New Union

Details continue to trickle out regarding plans for the Russia-Kazakhstan-Belarus Customs Union Vladimir Putin announced on June 9 (see Amanda Lahan’s CrisisCrunch post of June 10). On June 16, Andrei Slepnev, Russia’s Deputy Minister of Economic Development, announced that, as a result of the Customs Union, Russia’s “average customs rate will drop a little, but on the whole it will be acceptable.”

On June 15 Newsweek Russia reported that for the automotive sector, Russia has agreed to a reduction in the unified import tariff on new passenger vehicles, down to 25% from 30%. While this might be good news for car importers in Russia, it also means that Kazakhstan’s tariff will rise from 10% to 25% once the Customs Union agreement comes into force. Negotiators indicated earlier that this issue was a sticking point as Russia sought to protect its domestic auto industry, which both Kazakhstan and Belarus lack.

The Customs Union Commission, the body that is hammering out the details between the three countries, is scheduled to meet later this week. After the meeting Slepnev expects to have settled the details of the new unified customs tariff.

Possibly related posts:

1. Having it Both Ways - Russia is Saying Yes to Both the WTO and the Customs Union
2. The Customs Union Officially Exists
3. Policy Matters: The New Tripartite Customs Union and the Implications for Trade and Geopolitics
4. Treading Softly: Kazakhstan Weighs Up the Customs Union
5. What a Difference a Day Makes: Russia’s WTO Accession Hits Surprise New Hurdle