Russia's Accession To The WTO Brings New Opportunities To China's Rubber And Plastics Machinery Exports

- Jun 26, 2019-

Russia's accession to the WTO brings new opportunities to China's rubber and plastics machinery exports

On December 16, 2011, Russia was officially approved to become a new member of the WTO. As the world's sixth largest economy, Russia's accession to the WTO is a good thing for itself and the international community. It is particularly noteworthy that the Russian rubber and plastics machinery market has been a fast-growing market compared to other regional markets in the world. Entering the Russian market in the WTO era will bring new opportunities to China's rubber and plastics machinery exports.

According to the WTO accession agreement, the overall tariff level of Russia will be reduced from 10% in 2011 to 7.8%, and the overall tariff on industrial manufactured goods will be adjusted from 9.5% to 7.3%. Since the date of accession to the WTO, Russia is obliged to immediately implement new tariff requirements for more than one-third of import and export tax items, and another 1/4 of the tax items will be adjusted in three years. Analysts pointed out that WTO accession will not only help Russia further integrate into the process of world economic integration, but also create opportunities for promoting international trade development and multilateral trade mechanism construction. The foreign economic development after Russia's formal accession to the WTO will enter a new stage.

Blue convex diamond belt

It is understood that Russia's rubber and plastics machinery market demand is mainly due to the following reasons: First, the domestic food industry is developing rapidly, the demand for plastic packaging materials is correspondingly increased; second, building materials, sporting goods, stationery and automotive industry The demand for plastic products continues to grow. Third, at present, more than 2,000 companies in Russia are involved in rubber and plastics processing. 45% of rubber and plastic machinery has a service life of 10 to 20 years, and 25% has exceeded 20 years. Equipment upgrades are urgently needed.

In recent years, the Russian rubber and plastics machinery market has developed rapidly, with a market size of 300 million to 400 million US dollars. At present, the main import sources of the Russian rubber and plastics machinery market are Germany, Italy and Ukraine, and China ranks fifth. It is predicted that the Russian rubber and plastics machinery market will continue to grow in the next few years. With the reduction of tariffs, as a neighbor of Russia, China's rubber and plastics machinery industry will benefit a lot from the convenience of geography or the cost-effectiveness of manufacturing in China.

Green rubber conveyor belt

In addition to the reduction of tariffs, Russia's accession to the WTO has created long-term positive effects for China's rubber and plastics machinery industry, and is also reflected in the following aspects:

First, Russia's investment environment has been further improved, and it is expected to attract more foreign auto and tire manufacturers to build factories in Russia, thus driving demand for rubber and plastic machinery and bringing more opportunities for China's rubber and plastics machinery exports. According to Jürgens, vice chairman of the Federation of Russian Industrial Entrepreneurs, within a few years after joining the WTO, Russia can attract more than $2 billion in overseas investment each year.

Second, under the constraints of the WTO rules, the Russian customs management system will be more standardized and legal, and the customs clearance of Russian and Chinese importers and exporters will be more convenient. This will undoubtedly promote bilateral trade cooperation and enhance the quality of bilateral economic and trade relations. China is expected to purchase Russian raw materials more cheaply and at the same time export domestic products more conveniently.

Third, under the WTO framework, trade disputes are expected to be resolved more effectively. Once a trade dispute arises between the two companies, the two sides can negotiate and negotiate according to the relevant provisions of the WTO, which is beneficial to both sides.

Tire exports to Russia also have huge market potential. Russia is a big country in demand for tires, especially in Russia, where the demand for tires is increasing significantly in the process of revitalizing the economy. China's tire exports have a strong price advantage and are more suitable for the current Russian market. Since 2005, various Chinese autos have entered the Russian market in batches, which has also driven the attention of the Chinese tire industry to the Russian market. From the current demand situation in the Russian Far East, Russians have a strong interest in Chinese tires, and demand is growing rapidly.

In summary, China's rubber and plastics machinery, tires and other products exported to Russia has huge market potential. As Russia gradually integrates into the global economy, it will bring more stable trading environment to trading partners and enterprises after entering the WTO, which will surely give trade to China and Russia. Bring a new round of prosperity.