Determinations Under Section 1106(a) of the Omnibus Trade and Competitiveness Act of 1988Russian Federation

This memorandum determines that Russian state trading enterprises significantly burden U.S. foreign trade, but finds that Russia's pending WTO accession commitments—including promises that state-owned enterprises will act on commercial considerations and offer non-discriminatory terms to U.S. firms—satisfy statutory requirements, avoiding invocation of WTO non-application provisions against Russia.

Federal Register Open PDF 76 FR 79023

Impact dates

Dec 19, 2011
Publication in Federal Register

Key directives

Determine that Russian state trading enterprises account for significant share of exports and competing imports
Determine that such enterprises unduly burden or restrict U.S. foreign trade or economy
Find that Russia's WTO accession commitments meet requirements of 19 U.S.C. 2905(b)(2)(A)
Decline to invoke WTO Agreement non-application provisions
Authorize and direct publication in Federal Register

Who is ordered

United States Trade Representative · USTR

Timeline

Immediate

Determinations under Section 1106(a) take effect
WTO non-application provisions not invoked against Russia

Near term (90d)

Russia's WTO accession process continues with U.S. support

Long term

Monitoring of Russian SOE compliance with WTO commercial commitments
Potential future trade disputes if Russia violates accession terms

Risks & tensions

Conditional nature of findings—relies on future Russian compliance with WTO accession commitments not yet tested
No enforcement mechanism specified if Russia's SOEs later deviate from commercial considerations
Timing tied to Russia's WTO accession process, which was pending at time of signing