G/TRIMS/W/120  
 
17 April 2013  
(13-2041)  Page: 1/2  
Committee on Trade-Related Investment Measures  Original: English  
 
 RUSSIA – LOCAL CONTENT CONDITIONS IN  THE "AUTO INVESTMENT PROGRAM" 
QUESTIONS FROM THE UNITED STATES , THE EUROPEAN UNION AND JAPAN 
The following communication, dated 15 April 2013, is being circulated at the request of the 
Delegations of the United States, the European Union and Japan. 
 
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 On 21 January 2013, the Russian Federation circul ated a notification under Article 5.1 of the 
Agreement on Trade-Related Investment Measures (TRIMS), G/TRIMS/N/1/RUS/1 
(23 January 2013), as well as an addendum, G/TRIMS/N/1/RUS/1/Add.1 (11 February 2013). This 
notification was required by Table 38 of the Repo rt of the Working Party on the Accession of the 
Russian Federation to the World Trade Or ganization, WT/ACC/RUS/70, WT/MIN(11)/2 
(17 November 2011) ("WPR"). This notification addressed the "Auto Investment Program" 
described in paragraphs 1063, 1072-1086, 1089-1090 and Tables 42, 43 and 44 of the WPR.   
As mentioned by the Russian Federation in its notification and addendum, paragraph 1090 of the 
Working Party Report on the accession of the Russi an Federation refers to a termination of the 
WTO-inconsistent measures by 1 July 2018. That paragraph also sets out that the Russian Federation will engage in consultations with interested WTO members not later than 
1 July 2016 concerning WTO-consistent measures that could be applied and replace the WTO-
inconsistent measures.  
 
The granting of the transitional period until 1 Ju ly 2018 was a significant step aimed to facilitate 
the smooth integration of the Russian Federation in to the multilateral trading system. Against that 
background, and in light of recent concerns about certain fees and duties in the automotive sector, 
we are monitoring the Russian Federation’s domestic policies and measures to ensure they are 
implemented in line with the commitments made in the accession. In this regard, the timely and effective implementation of the commitments in paragraph 1090 of the WPR will be a crucial milestone.  
 
The United States and the European Union raise the following questions and comments with respect to notifications G/TRIMS/N/1/RUS/1 and G/TRIMS/N/1/RUS/1/Add.1: 
 
1. Paragraph 1090 of the WPR states that "[t] he representative of the Russian Federation 
confirmed that all WTO-inconsistent measures, including preferential tariffs or tariff exemptions, 
applied pursuant to Auto Investment Program No. 1 and Auto Investment Program No. 2 and 
agreements concluded under these programmes would be eliminated by 1 July 2018." However, in response to a question about phasing down or elimination of the program, the notification of the Russian Federation pursuant to TRIMS Article 5.1 st ates, "[t]he ultimate date of expiration of the 
agreements between investors and the Mini stry of Economic Development of the 
Russian Federation is 31 December 2020." In light of Addendum G/TRIMS/N/1/RUS/1/Add.1, can the Russian Federation please confirm that [t]he ul timate date of expiration of the agreements in 
their current form between investors and the Ministry of Economic Development of the 
Russian Federation is 1 July 2018?   
 
2. Please describe any preparatory steps the Russian Federation has taken or is contemplating 
in connection with the elimination of these WTO incompatible programs pursuant to paragraph 1090 of the WPR. G/TRIMS/W/120 
 
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  3. Under paragraph 1090 of the WPR, the Russian Federation agreed that it would "engage in 
consultations with interested WTO Members, no later than 1 July 2016, regarding WTO-consistent measures that could be applied in connection with its Auto Investment Program No. 1 and Auto Investment Program No. 2 and would notify WTO Members of any measures planned to replace 
the WTO-inconsistent measures applied under these programmes at least six months prior to the 
adoption of such new measures." Has the Russian Federation taken any action, or does it anticipate taking any action prior to the next meeting of this Committee that would require 
notification or consultation pursuant to paragraph 1090? 
 4. The United States and the European Union wo uld appreciate if the Russian Federation could 
regularly inform the TRIMs Committee on the steps that will be taken with a view to consulting 
interested WTO Members and eliminating the relevant programs pursuant to paragraph 1090 of 
the WPR.  
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