Russia's WTO accession to textile enterprises brings new opportunities

Recently, Russia officially joined the World Trade Organization. According to Russia’s commitment, the average import tariff level in Russia will fall from 10% in 2011 to 7.8%. Since the accession to the WTO, more than one-third of the import and export tariffs in Russia will implement the new reduced tax rate, while the Other one-quarter tax amount will be adjusted within three years.

For a long time, the Russian textile and garment market has attracted much attention in the international market. China has always been one of the major suppliers of Russian textile and apparel imports. According to statistics from Shaoxing County Bureau of Commerce, in the first three quarters of this year, the textile exports to Russia totaled 160 million U.S. dollars, involving 518 enterprises.

What impact and changes will the Russian market in the “WTO” era bring to my county's textile enterprises?

The relevant person in charge of the Bureau of Foreign Trade of the County Bureau of Commerce told the author that although the share of the Russian market in textile exports in the county was small, it involved more companies. For a variety of reasons, the Russian market has been difficult to expand. Since Russia is a country dominated by heavy industry, most of the domestic light industrial products rely on imports. Although in recent years, the Russian textile industry has seen significant development, the overall analysis still fails to meet the growing domestic consumer demand. The annual import volume is still growing, and there are still great business opportunities. Russia's accession to the WTO will mean that it will be fully integrated into the global economic integration and all trade practices will be conducted in accordance with the WTO rules. For our county textile enterprises, there will be a more sunny and standardized trading environment. In the long run, it is beneficial to my county's enterprises to make bigger and refined Russian markets.

“The market is very attractive, but it also requires textile companies to step up to chase the market.” Shaoxing Shenghua Textile Co., Ltd. and Shaoxing Huaxin Textile Co., Ltd. are the enterprises that do better in exporting Russia to the county. Many foreign trade companies Personnel believe that Chinese products have always been cheap and attractive, and they have been welcomed by the vast number of consumers in the Russian market. The export of enterprises to Russia has been dominated by medium and low-end products. However, with the improvement of the living standards of Russian residents and the increase in the level of consumption, the demand for medium and high-end products has increased. With the accession to the WTO, the Russian market will be open to more countries and will attract more trading partners. Therefore, the county enterprises should make timely adjustments according to changes in market demand and expand the proportion of medium and high-end products.

“Farewell to low-quality, low-price competition, development of quality and brand.” During the interview, many textile companies in my county considered that Chinese companies, as traditional suppliers of Russian textiles, must see changes in the market and export products. With the changes in the development of the Russian market, it will be possible to establish a long-term foothold in the Russian market. As a company, it is necessary to carry out innovative research and development on the basis of analyzing the Russian market, develop new textile fabrics suitable for the local area, and increase brand promotion.

Many insiders also analyzed that after Russia's accession to the WTO, the county’s export value will gradually increase, and this more standardized and mature market has unlimited business opportunities. At present, many companies in our county have already planned to set up branches and set up windows in Russia.