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Russia's accession to World Trade Organisation, set to boost whisky exports

Published:  22 December, 2011

 

Russia's accession to the World Trade Organisation (WTO) has been welcomed by the Scotch Whisky Association (SWA).

 

Russia's accession to the World Trade Organisation (WTO) has been welcomed by the Scotch Whisky Association (SWA).

The move which was approved on December 16, after 18 years of negotiation, is set to boost whisky exports and is designed to make Russia's trade regime more transparent and stable.

Previously there have been impediments to trade, including issues with licensing, technical regulations affecting spirits and bank guarantees for duties and taxes payable.

Russia, one of the world's largest spirits markets, and the agreement is expected to integrate it further into the global economy and break down trade barriers to the benefit of importers.

SWA deputy director of international affairs, Martin Bell said: "Russia was the last major economy outside the WTO. Its accession will bring significant gains to Russian exporters as well as to those exporting to Russia.

"It is one of the largest spirits markets in the world but is dominated by domestically-produced vodka.

"Accession to the WTO should improve conditions for scotch whisky producers looking to enter the market for the first time, or expand their presence there.

"We hope that ongoing issues which have been holding back the growth of Scotch inRussia will now be addressed and that market access will improve as Russia complies with its new WTO obligations."

Although exports to Russia have grown rapidly to more than £131 million last year from less than £1m in 2001, its share of the country's spirits market is only 0.8%.

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