EU Kicks Off WTO Dispute Consultation With Russia Over Import Substitution Program

A European Union request for dispute consultations with Russia in the World Trade Organization over an alleged Russian import substitution program was circulated to members July 26. The substitution program includes three measures to favor Russian state-owned enterprises and businesses over imported goods: price preferencing favoring Russian-origin products in government procurement practices, requirements to obtain prior authorization for the purchase of certain engineering products, and minimum quotas for Russian-origin products in the procurement policies of SOEs. “The EU claims the measures relating to the activities of certain state-related entities, and laws and regulations regulating these activities, are inconsistent with various provisions under the WTO's General Agreement on Tariffs and Trade (GATT) 1994, the General Agreement on Trade in Services, and Russia's Protocol of Accession to the WTO,” a notice on the dispute consultations said.