that are closely aligned with older models. This process has created significant tensions with respect to Russia’s NTM policies.

The WTO agreements have multiple provisions that relate to trade beyond tariffs. In particular, the family of General Agreement on Tariffs and Trade (GATT) 1994 agreements negotiated in the Uruguay Round, which established the WTO, covers such measures as trade-related investment policies (TRIMs), traderelated intellectual property policies (TRIPs), government procurement, and customs formalities. However, the largest number of trade frictions arises from regulatory measures applied to imports— namely, sanitary and phytosanitary standards (SPSs) and technical barriers to trade (TBTs). In a series of national surveys commissioned by UNCTAD, the share of trader complaints pertaining to SPS or TBT issues ranged from a low of 65% in India, Tunisia, and Uganda, to a high of 93% in Thailand (Basu et al 2012). SPS and TBT complaints also probably dominate matters taken up by WTO bodies.

Issues related to regulatory measures applied to imports are governed by the SPS and TBT Agreements of GATT 1994. These deal with the relationship between regulatory measures and trade in a parallel but somewhat different manner. Both require that national technical regulations ... shall be directed at legitimate objectives such as human health or safety; animal or plant life or health; national security requirements; the prevention of deceptive practices; or the environment; and shall not be applied in a manner which would constitute a disguised restriction on international trade or create unnecessary obstacles to trade.

TBT regulations _“_ shall take into account available scientific and technical information _”_ and SPS measures “shall be based on scientific principles and shall not be maintained without sufficient scientific ”<sup>13</sup> evidence, when such evidence is available _._ Each agreement refers to recognized international standards, which can be used as a basis for WTO-compliant regulations.

The agreements also provide for disputes about compliance to be referred to the Dispute Settlement Body (DSB) for consultation. The DSB has a multistage process for resolving issues. If a WTO member prevails in the DSB, it may withdraw some market access from a non-compliant member in equivalent value to the costs imposed by the non-compliance.

Russia made wide-ranging commitments in its WTO accession protocol, among them tariff cuts, commitments to liberalize services, fixing of export duties on mineral fuels and oils, elimination of quantitative restrictions on imports, and compliance with the full range of WTO agreements, including SPS, TBT, TRIMs, and TRIPs. Some of these commitments are to be phased in. For example, tariffs are to be reduced gradually through 2019. Some liberalization of services will also be phased in, e.g., limitations on foreign equity in telecoms companies (2015) and market access for foreign insurance companies (2021). Russia has already joined the Information Technology Agreement (as summarized in Blockmans, Kostanan, and Vorobiov, 2012)<sup>14</sup> and is to join the Government Procurement Agreement by 2016.

> 13 Article 2 of the SPS and Article 2 of the TBT Agreements treat these issues in a parallel but somewhat different manner.

> 14 Russia joined the Information Technology Agreement, which removes tariffs on a wide variety of electronics and IT products, on September 13, 2013.

RUSSIA’S TRADE POLICY CHALLANGES – THE WORLD BANK GROUP 12