Russia, which is currently at the 4th place in the world ranking of alcohol consumption, has decided to start a war against alcohol by introducing a new law.

According to the Associated Press’ report in January, the Russian government has enacted a new law to change beer’s status from “beverage” to “alcohol” in order to reduce national alcohol consumption.

Under the new law, Russian people will only be allowed to buy beer at restaurants, cafe, or stores with a size of over 50m2. It will be banned for regular stores to sell beer between 11PM and 8AM the following day. Within this time period, people are now allowed to have beer in public spaces, such as parks, beaches, or playgrounds. In addition, the Russian government entirely banned the Russian media from airing alcohol commercials.

So far, Russian people have purchased beer from a small chain of stores on the street called “KIOSK.” However, the sight of people drinking beer on the street will soon be disappearing.

In fact, it is not the first effort to reduce people’s alcohol consumption in Russia. In 2011, Russia’s former president Dmitry Medvedev named Russia’s excessive drinking the “nation’s disaster,” pushing for several regulations in order to curb the alcohol consumption. The Russian government imposed 20 percent increased taxation on beer, and it is planning to further increase the tax by 20 percent this year and then 25 percent more the following year. Russian people’s favorite drink, the vodka, was not exempt from regulatory measures. The price of vodka in Russia has increased by 36 percent this year compared to that of last year.

The excessive alcohol consumption is a deep-rooted problem in Russia. Russian adult men drink between 16-32 liters a year on average, and about 500,000 people die due to alcohol-related problems every year.

According to the World Trade Organization (WTO)’s report last year, the Russians’ alcohol consumption was 15.8L per person on average, which makes the world’s fourth highest consumption level. WTO also added that one out of five men and six percent of the entire Russian women population die because of the excessive alcohol consumption.

The British newspaper Telegraph reported that vodka has been the most popular alcohol in Russia for many years, but beer has caught up with vodka’s popularity in recent years. The newspaper added a quote by the head of the Russian Beer Brewer Association that the new law will increase the consumption of vodka, and cause more serious problems.

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Leo W. Gerard, International President of the United Steelworkers (USW), on February 07, 2012 issued a positive but cautious reaction to the signing of understandings reached by the U.S. with the European Union, and separately with Japan, in long running trade disputes over antidumping methodology called ‘zeroing.’

“USW members have been a petitioner or supporter of more than a third of the antidumping cases brought against imports during the last twenty years,” Gerard said.  “Strong trade remedy laws are important for stopping the destructive practices of many of our trading partners who dump products in our market that harm our union members and domestic producers.”

Historically, U.S. law has captured 100 percent of dumping found with no reduction based on non-dumped sales. The World Trade Organization (WTO) Appellate Body, in a series of decisions in the last decade, viewed the WTO Antidumping Agreement as requiring WTO members to give ‘credit’ for non-dumped sales. The U.S. under two Administrations has viewed the WTO Appellate Body decisions as overreaching and contrary to what the U.S. had negotiated.

The agreements made by the USTR with the European Union and Japan were the result of U.S. efforts to settle long standing disputes with two major trading partners.

The USW has long urged a clarification of U.S. rights within the WTO in the ongoing Doha negotiations to specifically permit capture of 100 percent of dumping found, while also seeking to clarify the intended limits on the power of the WTO Appellate Body. The announcement from U.S. Ambassador Ron Kirk is a positive development on two counts – and raises cautions on a third.

“One count of our core objectives has been met with these announced agreements – a prospective application of any change – meaning no retroactivity – while avoiding retaliation is certainly a very positive outcome,” Gerard said.

“Also positive is Ambassador Kirk’s confirmation that the U.S. will continue to pursue clarification of our rights within the WTO to apply zeroing, which is important to all companies and their workers who rely on conditions of fair trade in the U.S.  We will be working with the Administration to see that the clarification happens as quickly as possible,” he added.

The USW President acknowledged there was no question that the modification will significantly undermine the historic ability of our antidumping duty law to address all injurious dumping. ”U.S. manufacturers and their workers will be disadvantaged, which now makes clarification of such rights extremely important.”

Gerard said the USW will be monitoring how the changes are implemented and trusts that the Administration will rebalance the operation of U.S. law so jobs are not needlessly lost to international price discrimination. “This is a highly technical area of the law but, it has a huge impact on the jobs of our members,” he explained.

“The Administration has the opportunity to review and alter existing U.S. practices by reviewing our rights under international law and determining how we can alter our approach to address the predatory pricing of our competitors to implement our rights and fight for our producers and workers.”

Gerard emphasized: “Rebalancing must be a priority of the Obama Administration and of the Congress.  No group has a greater interest in the vigorous enforcement of our antidumping law than the men and women who are employed in American manufacturing facilities.”

Image Courtesy of   http://www.flickr.com/photos/unitedsteelworkers/

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The Coalition for U.S.-Russia Trade, comprised to date of more than 70 business associations, companies and agricultural groups, including  the National Association of Manufacturers and the American Farm Bureau Federation, welcomed the announcement made by the WTO’s Ministerial Conference in Geneva to formally invite Russia to become a member of the global rules-based body.

The Coalition’s task now is to work with the U.S. Congress and the Obama Administration to pass necessary legislation that makes Russia’s market concessions fully available to U.S. business and agriculture.

“Russia is the 11th largest economy in the world, yet it is still not bound by the international principles and standards of the WTO.  Today’s invitation brings Russia one step closer to abiding by and adhering to global rules.

We applaud the negotiators from the United States, Russia and other WTO members, without whose dedication and hard work this historic moment would not have been possible,” said Edward Verona, President and CEO of the U.S.-Russia Business Council (USRBC), the Washington, D.C.-based trade association that serves as Secretariat of the Coalition for U.S.-Russia Trade.

“The terms of Russia’s WTO accession agreement will provide businesses in the United States the opportunity to operate with greater transparency and predictability in the Russian market – but only once the U.S. Congress graduates Russia from the Jackson-Vanik amendment and extends Russia Permanent Normal Trade Relations (PNTR),” Verona added.

Russia’s WTO membership agreement stipulates that the Russian government must ratify the accession package by June 15, 2012.  Once the agreement is approved by Russia’s legislature and signed by the Russian President, the Russian government will notify the WTO of its approval, and 30 days later Russia will officially become a member of the WTO.

For now, the Obama Administration has invoked what is known as “non-application,” notifying the WTO that the United States cannot yet offer Russia immediate and unconditional free trade status, as WTO rules require.  Thus, Russia is not obligated to grant U.S. business and agriculture full rights to the wide range of concessions it made to become a WTO member.

Thus, while the achievement of a high-standards deal on Russia’s accession is cause for celebration, the U.S. business and agricultural communities realize their work is not done.

“We now need to help Congress understand that, without Russia PNTR, the U.S. private sector is going to miss out on growing export and investment opportunities in Russia that will create and sustain jobs here in the United States,” said Randi Levinas, Executive Director of the Coalition and Executive Vice President of the USRBC.

“The Jackson-Vanik amendment no longer provides us with leverage in our relationship with Russia.  It now stands only as an impediment for U.S. economic interests. We will be working hard in the coming months with the Congressional leadership, the committees of jurisdiction and the Administration so that U.S. interests can take full advantage of Russia’s accession in a timely fashion.

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