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FC ratifies CIS free trade zone agreement

It cuts the list of goods to which protective tariffs apply

MOSCOW, March 28 (Itar-Tass) — The Federation Council upper house of the Russian parliament ratified the agreement on a free trade zone in CIS territory. The document was signed in St. Petersburg on October 18, 2011 by representatives of eight CIS countries: Russia, Armenia, Belarus, Kazakhstan, Kyrgyzstan, Moldova, Tajikistan and Ukraine.

The agreement has provisions that guarantee non-discriminating non-tariff regulation, national regime and clear subsidy rules that conform to world practice. It cuts the list of goods to which protective tariffs apply. The sales market therefore will expand.

The agreement creates the necessary conditions for full-fledged and effective functioning of a free trade zone for CIS members. The ratification of the document is expected to contribute to further mutual integration on the basis of norms and rules of the World Trade Organization, parliamentarians said.

The FC committee on international affairs said the agreement differs from the effective documents in the availability of the instrument to compel the sides to meet their commitments.

This instrument is the procedure to resolve disputes. At the first stage, disputes are to be resolved through consultations.

In case of failure to reach an accord, the dispute might be passed for review by the CIS Economic Court, if the parties are signatories to the agreement on the status of the CIS Economic Court dated July 6, 1992.

The document cancels import customs duties and spells out the parties' commitments to mutually cancel bans and quantity restrictions.

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