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Liberalisation of Foreign Trade and Accession of the Republic of Belarus to World Trade Organisation

Liberalisation of foreign trade is one of the key lines of the economic policy of the State, which improves the country’s position in the system of international division of labour, expands sales markets, increases productivity and improves wellbeing of the people.

Given all this, the main goal for the development of foreign trade activities of the Republic of Belarus at present is increasing effective cooperation of the country with the global market. To this end, the following is required: improving the system of management of foreign trade activities; developing a new export profile of the country for strengthening of competitive positions of Belarusian producers in the global markets; speeding the development of technological, institutional and organisational structures facilitating mainstreaming of new elements into the integrated production facilities with modern technological conditions; creating conditions for update and increase of economic efficiency; developing scientific, production, financial and industrial associations; optimising trade and payment relations with other countries; developing international cooperation given account of national interests and capacities of the country supported by the priorities in the export strategy and stable economic and legal conditions for the national participants in foreign trade activities.

The main lines of foreign economic activities of the Republic of Belarus for the near future include:

- Preservation of the priority of economic measures of state regulation of foreign trade activities;

- Fulfilment of obligations taken by the Republic of Belarus according to international agreements and exercise of the rights stemming from international agreements;

- Determination of a new profile for specialisation of Belarusian economy;

- Development of a mechanism ensuring expansion of the markets for sale of products, restructuring of production funds, and increasing of competitiveness of products;

- Development of territorial and geographic priorities for foreign trade activities.

Foreign trade turnover of the Republic of Belarus in 2004 was US$ 30.1 billion, going up by 40 percent against 2003. Trade turnover with CIS countries made US$ 19.1 billion or 63.5 percent of the total trade turnover of the country, whereas with other countries it was 11 billion US dollars or 36.5 percent of the total trade turnover. The value of the foreign trade turnover with CIS countries went up by 41.7 percent and with other countries by 37.1 percent.

Export of goods from the Republic of Belarus made about 13,8 billion US dollars, including US$ 7.3 billion to CIS countries; among it, 6.5 billion US dollars to Russia and 6.5 billion US dollars to other countries. As a whole the country’s export in actual prices went up by 38.3 percent; to CIS countries by 34.2 percent; to Russia by 32.4 percent. Belarusian export to other countries, outside SIC, increased by 43.1 percent.

CIS countries covered 53.1 percent of Belarusian export, while the Russian Federation had 47 percent of the total amount. The main types of goods exported by the country in 2004 were: oil products – 24 percent of the total export; potassium fertilisers – 5.5 percent; ferrous metals – 4.6 percent, trucks – 3.9 percent; milk and milk products – 2.7 percent, tractors – 2.5 percent; and refrigerators and freezers – 2.3 percent.

Main lines of export, 2004

Country

Scope, US$ million

 Percent of the total export

Percent of 2003

Russia

6 463.0

47.0%

132.4

Great Britain

1 147.6

8.3%

122.3

Netherlands

924.4

6.7%

223.4

Poland

728.8

5.3%

167.8

Ukraine

539.8

3.9%

157.1

Germany

502.9

3.7%

119.4

Lithuania

356.3

2.6%

134.5

Latvia

326.0

2.4%

94.7

China

301.5

2.2%

185.8

United States of America

162.5

1.2%

158.8

Import of goods was worth 16.5 billion US dollars, including 11.8 billion US dollars from CIS countries; among them, 11.1 billion US dollars from Russia. Import from countries other than CIS countries made US$ 4.5 billion. The total import of the Republic of Belarus increased by 41.1 percent. Import of goods from CIS countries went up by 46.7 percent, including from Russia by 46.6 percent. Import from countries other than CIS countries went up by 29.4 percent. The share of CIS countries in the total Belarusian import was 72.2 percent; Russian goods covered 68.2 percent of the imported goods. The main imported goods in 2004 were: crude oil and gas condensate – 19.8 percent, ferrous metals and products from ferrous metals – 7.1 percent, cars – 2.0 percent, steel pipes – 1.4 percent, internal combustion engines – 1.3 percent, parts for automobiles – 1.2 percent, oil products – 1.1 percent, and medical preparations – 1.1 percent.

The foreign trade balance was negative at 2.6 billion US dollars, increasing by 981.4 million US dollars as compared to 2003. The trade balance with CIS countries was -4.5 billion US dollars, including with Russian Federation -4.7 billion US dollars. The balance with CIS countries was positive at 1.9 billion US dollars.

 Main lines of import, 2004

Country

Scope, US$ million

 Percent of the total export

 Percent of 2003

Russia

11 142.6

68.2%

146.6

Germany

1 081.0

6.6%

131.7

Poland

475.0

2.9%

136.3

Ukraine

544.9

3.3%

150.5

Italy

300.5

1.8%

105.8

United States of America

195.1

1.2%

129.9

Lithuania

175.6

1.1%

113.8

France

165.0

1.0%

141.9

China

158.0

1.0%

220.2

Great Britain

128.4

0.8%

161.8

Accession to the World Trade Organisation (WTO)

Accession of the Republic of Belarus to WTO is viewed as an important stage of integration into the world economy, which will give the country tools for protection and promotion of its national interests within the system of international trade.

Accession to WTO sets before the Republic of Belarus the task to ensure compliance of its economic legislation with WTO rules and make balanced concessions to trade partners so as to ensure a more open access of foreign goods, services and investments to the domestic market. In the process of negotiation the Belarusian party stems from the need to maintain an adequate potential for protection of national economic interests after accession of Belarus to WTO.

Given WTO rules, the following laws have been adopted in 2004-2005: “On Technical Norms and Standardisation”, “On Assessment of Compliance with the Requirements of Technical Regulatory Acts in the Field of Technical Norms and Standardisation”, “On Quality and Safety of Raw Food Materials and Foodstuff for Human Life and Health”, “On Making of Amendments in the Law “On Trademarks (Service Marks)”, “On Postal Services”. In 2004, the Law “On State Regulation of Foreign Trade Activities” was passed. It was developed taking into consideration international legal commitments of the Republic of Belarus on unification and harmonisation of its legislation with the Russian Federation, as well as the norms of WTO agreements. In 2004, WTO rules were taken into account to pass the following laws: “On Making of Amendments in the Law of the Republic of Belarus On Customs Tariff” (issues of customs evaluation), “On Making of Amendments and Additions in the Customs Code of the Republic of Belarus” (issues related to collection customs clearance fees).

To take account of the WTO norms, in 2004 the Law of the Republic of Belarus “On Making of Amendments and Additions to the Law “On Measures for Protection of Economic Interests of the Republic of Belarus in Foreign Trade of Goods” was passed. The draft of the Law was analyzed by experts by the WTO Secretariat.

Given the requirements of the WTO Agreement on trade aspects of the rights to intellectual property (TRIPS), bills are being drafted” “On Making of Amendments and Additions in the Law “On Copyright and Related Rights”, “On Making of Amendments and Additions in the Law “On the Legal Protection of Integrated Microcircuit Topologies” and “On Patents on Sorts of Plants”.

As of 1 January 2005, the bilateral Agreement between the Republic of Belarus and the Russian Federation on switching over to VAT collection in mutual; trade using the principle of the country of destination. Thus, the Republic of Belarus brought its foreign trade laws in this field in compliance with the WTO rules, establishing the single principle of indirect taxation in trade with all countries.