Russia Finally Outgrows Sanctions; Economic Output and Self-Sufficiency Grew in 2018!
Well, last year, Russia succeeded in liberating itself from the export and import restrictions amounting to $330 million. According to the Ministry of Economic Development, sanctions, duties, and technical barriers don't prevent the country from raising its turnover of commodities.
Dmitry Morok will tell about the development.
Down with trade barriers! Limitations adopted by other countries against the Russian market may and should be lifted, as the records of the last year indicate. In 2018, Russia succeeded in getting rid of 32 measures that prevented its commodities from entering international markets. The economic gain exceeded $330 million, according to the recent data by the Ministry of Economic Development. The experts say that it's getting easier to fight trade discrimination.
Aleksey Portanskiy, Higher School of Economics: «Over the last few years, there were more barriers that we removed than the new ones which were imposed on us. It happened thanks to our accession to the WTO. Because before that we just couldn't lift them, as there wasn't any such mechanism. But after 2012, we gained this mechanism».
Of course, one can't wage trade wars without casualties. $6.3 billion is an approximate amount of losses the national market suffered last year, according to the data of the Ministry of Economic Development due to various trading restrictions. Earlier, the ministry announced that the commodity turnover in the country is nonetheless rising, despite numerous barriers. Apart from sanction, Russia suffered an introduction of anti-dumping duties, quotas, technical barriers, sanitary and phytosanitary measures, 159 restrictions in total on the part of 62 countries.
This map presents leaders on the list. The most trade barriers were introduced but the EU countries: 25; Ukraine takes second place, then there are India, Belarus, Turkey, and the USA. By the size of the damage inflicted by the imposed restriction, the leader is again the EU. It's almost $2.5 billion. Among other leaders is the USA. The measures taken by Washington cost Russia $1.2 billion. The top also includes Ukraine, India, and Turkey.
The metallurgic industry became the main victim of the restrictions. The ministry estimates the damage in $4 billion. The losses suffered by the farming industry amount to approximately $1 billion. While the chemical industry, as the data indicates, is over $500 million.
It's worth noting that, over 2018, Russia adopted only 7 new protection measures, while none of the restrictions has been adopted this year. However, on Friday, the RBC reported, referring to the Customs Service, that propositions are being made to extend the food products embargo. It involves a restriction on the food products import from a number of foreign countries including the EU, Canada, and Australia. Counter sanctions may cover olives, juices, jams, and canned fish and meat. The farming industry may become the principal beneficiary of these restrictions. After adopting counter sanctions in 2014, and establishment of the localization doctrine, the agricultural sector has been increasing its productivity.
Anatoliy Kutsenko, National Fruit Association: «Meat production has increased by 2.5%, dairy production has increased by 1.5%. Besides the productivity of greenhouse facilities has been extensively increasing. We have reached the index of over 1 million tons in fruit crop, as well as in greenhouse products, such as tomatoes and cucumbers: non-import fresh food products are sold now in retail.»
That said, the Ministry of Economic Development nonetheless warns of the harm over-extensive protective measures. The document states that its further increase comprises one of the main risks for the global economy. If tariffs are raised globally to the maximum set by the rules of the WTO, the global commodity turnover may decrease by 9%.
Vasiliy Koltashev, Economic Research Center: «An abrupt rise in protective measures on the part of certain countries, mainly by the USA, can dramatically impact the global economic balance that was holding from 2016 to 2018, so for 2.5 years, despite some trading fluctuations at the end of 2018. They have caused a lot of agitation and have largely constrained the American pressure in protective measures. However, in relation to other countries, the protective measures are rather beneficial.