«To reach businessmen who we don’t see on the usual spaces, is our task of primary importance»

The head of the World Trade Center Vladimir Salamatov, for kommersant.ru

-Tell us about the World Trade Center, please. We would like to understand what are the competencies of the World Trade Center Moscow in the field of international trade development?

-World Trade Center Moscow (WTC) was opened in 1979, before the Olympics, when the country was fenced by the “Iron Curtain” from the West – you had to pass a special commission of the district Party committee to go abroad, and economies of Russia and economies of world were non- complimentary to each other. Then the idea to establish such a center appeared. The Soviet Government supported that idea. WTC had to implement very complex transformation that could allow more effective and active trade with the world. Of course, as in WTC was created a relevant structure – hotel, office and apartment complex – first of all the representatives of foreign countries visited WTC. Some of these countries, first of which were South Korea, Japan and USA established trade mission there. The most important thing that was launched on this platform is a dialogue. As for today, we took functions that is, on the one side, analysis of the competitiveness of Russian companies and the foreign trade, on the other - to promote the expansion of trade, investment, and effective technology transfer. And it is fully consistent with the original idea of the Center, but of course, on another level.

-Which of the WTC services are high-demanded in Russia?

From the commerce point of view the principal income-commerce, of course, is brought by the presence of a very high leveled infrastructure - offices, hotels, restaurants. Now our Congress Centre is one of the most significant spaces in Moscow and Russia. In addition, the successful development of our analytical, consulting and information competence in the field of international trade. Two years ago WTC in cooperation with the Chamber of Commerce and Industry of the Russian Federation launched the special project "Russia in the WTO." At that time there was a problem to show clearly to business people what kind of organization it is, set of rules that define its work, what conclusions and troubles we can expect from it. Troubles of the WTO have not affected Russia very much, at least at this stage, and we haven’t learned how to use opportunities yet. At the same time as the project was launched, young energetic and experienced people came into our company. All of them, in one way or another, were directly related to the negotiation process on Russia's accession to the World Trade Organization. Negotiations lasted for eighteen years, and for all the participants it became very serious ‘school’. In the past year we summed up the project, issued a special Analytical digest which was high-demanded and sold throughout the country, moreover, we had to translate it into English. We are well aware that today the process of sharing and conveying information is different from what it was before. There is a tool such as infographics - when a large amount of complex information is laid in infogrammy and it let the information to be spelled out to the consumer. In addition to information analysts, we have formed a close relationship between business associations and authorities. We have repeatedly carried out activities on the regulation of international trade. They were organized on a non-governmental level, but there were not only representatives of the Russian authorities, the Customs Union, but also the European Union, US. The other area, which is, for today, is rather important for us is to work with the Eurasian Economic Commission. For this purpose we have created a special expert group.

— It is known that you are planning to expand cooperation with the Eurasian Economic Commission (EEC). In particular, for its direct support, you launched a special project with the publishing house "Kommersant". Could you tell us more about it, please?

— Even before the idea to create a joint project with the publishing house "Kommersant" started up, we conducted surveys among participants of our seminars, which mainly consist of the large business associations - Commerce and Industry (CCI), the Russian Union of Industrialists and Entrepreneurs (RSPP). But this audience is in fact limited to 10% of the largest Russian business is definitely involved in export activities and their own experience is familiar with all sorts of restrictions on foreign markets. RSPP but cannot be responsible for small and medium businesses, which has untapped potential. CCI of Russia has a greater regional coverage, but there is the same situation. When we talk about the export potential, we must take into account not only those people who can afford to participate in the major events. That is why we selected a completely different scheme of work. In our opinion, 90% of business - most are small and medium-sized enterprises are not covered. It turns out that a lot of decisions that were made earlier, based only on the most active 10%. With the help of "Kommersant" we will be able to get attention not only of Mordashov, Pumpyanskiy or Alekperov, and, in fact, of any individual entrepreneur, whose product quality allows to think about promoting it to international markets. We would like to make a simple, intuitive known interface - map of the world that is familiar to all of us on the gadgets. You choose the country, click and say: I have this or that, and your potential customer in another country can appreciate these opportunities. "Kommersant" is read by millions. That’s why the project's main goal is to reach every reader who is interested in issues of international trade and is looking for opportunities to promote products to new markets. As for today, everyone who is engaged in business activities – internet users - on the basis of this, the coverage is seemed to be colossal. Russia has always been strong for its back country, entrepreneurs and initiative. In Russia - worse is stronger we become. I'm sure that to reach businessmen who we don’t see on the usual spaces, is our task of primary importance.

—What opportunities can the specific entrepreneur get by virtue of the project?

—In the first instance you will see a change of attitude towards you and your business – that means you will be asked. You will be able to say openly: I am interested in development of trade relations with this country now. For example, you will be able to specify that the research has been done and understand that your product will be in demand also in the markets of other countries. So, on the one hand, we collect all kinds of potential from all over Russia, and on the other hand, we provide all information that is required for each enterprise to bring its products to a particular new market. But the abovementioned is only the first part of this project - collection of data. The second part is no less interesting. Moreover, I think later it’ll become much more important - is the product presentation to interested consumers in the countries where we are negotiating. Of course, it all starts with some large commercial project, but we come to the fact that there are a lot of small businesses that have unique, interesting, original products, which were previously unknown.

- But a desire to sell your goods in a particular market alone absolutely does not guarantee that the consumer will appear.

- Of course, we are talking about the project core, just about a map which we enter information in and extract it from. But besides that, the project goal is to explain to a wider audience of entrepreneurs why the negotiations on the free trade area in ECE are taking place, how they are carried out, and what stages they are on. The second part of the project is dedicated to a particular country i.e. to evaluation of the market potential, the suppliers and customers, and the regulatory system etc.

- What exactly makes this project unique? What are its distinctive features?

- Do you know what the major business concern was and why there were many negative views on the WTO accession negotiations? During the 18 year of negotiations we practically did not know what to agree upon, however, everyone understood that this was a negotiations feature – they were confidential. It is quite the opposite in our project with the ECE – a clear feedback emerges. For instance, Vietnam, which proposed negotiations on the free trade area and the supranational regulating body represented by the ECE, is asking: “dear colleagues, what are we interested in in this market?” We know the structure of the mutual trade and we understand that the issue cannot be resolved by a simple tariff drop; and, while entering into the agreement, we can say that, apart from the tariffs, we are interested in the elimination or decrease of particular non-tariff barriers in the technical regulation, the standardization, and the goods safety requirements etc. The business, which faces these issues, occasionally senses this more finely than public officials. The officials develop particular instruments and they need an idea on how to make the instruments as effective as possible for the producers and consumers.

- But the international trade matters in Russian Federation are the domain of The Ministry of Economic Development and Trade and The Ministry of Industry and Trade of the Russian Federation. Why do you think you can be successful in this mission realization?

- On the back of our business cards a very simple motto is written: “Trade and investments – prosperity fundamentals”. The project goal is to create a new more down-to-earth language and a format of relationship between the authorities and business. WTO – is a Russian business as well. We have tight connections with the state authority because we work to develop a dialogue between the business and authority, but our language is closer to business. We want to develop a feedback communication with the widest range of constituencies. First of all, it is those who already trade with the countries we are interested in – Vietnam, Israel, New Zealand and others, which are interested in deepening and developing the mutual trade. It is evident that the limit of effectiveness has not been reached here yet; that there are opportunities to enhance this business from nomenclature and profitability points on view. We understand that the domestic market tariff shelter recedes into the background. The non-tariff regulation comes forwards – i.e. the technical regulation, licensing and other hidden free trade obstacles. Naturally, The Ministry of Economic Development and Trade and The Ministry of Industry and Trade of the Russian Federation ask business: what problems do you have, what barriers. Our task is to help to get to the root of the obstacles, to qualify and to explain them so that the business can go to the ECE and The Ministry of Economic Development, referencing not a general set of supply obstacles, but would rather be able to explain how they are being discriminated against. An example – recently the authorities of a country (I’m not naming it here) issued a statement. It stated: we’re renewing the taxi fleet but all the cars should be of a particular length – 4 meters 50 centimeters. Such standardization. Supposedly no problems here. It’s being done so that more people can get into a car and it would be more convenient to accommodate the luggage. In fact there is a particular car model co-assembly project that is being launched in this country; the cars meet the new standards and are 10 centimeters longer than their Russian counterparts. Consequently our exporters are driven out of the market. The business should be taught to talk the language that the authorities can understand. One has to be an interpreter in some sense and even more than that. What is most important is that each problem is categorized and a specific instrument to solve it is proposed. There you have our task – to move away from insolated situations to a solution system. The WTO let us know what instruments are there. We did not even think of them before.

- What do you think the direct partnership with the ECE brings to the project?

- Nowadays the ECE became a powerful international trade regulator. While forming the Customs union many national authorities’ attributions were transferred to the Commission. The customs tariffs regulation, the technical regulation, the issues of sanitary and veterinary measures and many-many other. If the ECE regulates that then the direct communication with the business has to exist. Because of that for the Commission and for us as for the business it is very important to develop a dialogue so that the Commission authorities could clearly understand the scope and the stakeholders’ position, which the regulation is directed to. The goal of the ECE is to support the Russian goods and services promotion in the international markets. We have to see the companies that are interested in the free trade area with e.g. Vietnam in order to understand how to run the corresponding negotiations. The free trade area bilateral talks matter is already within a purview of the ECE. I.e. the dialogue regarding the trade development and the barriers dropping is already not at the level of, say, Russia-Vietnam, but at the level of The Customs Union member countries and Vietnam. And this market is more attractive for our partners. The dialogue development and the dialogue information support are important for the ECE and for the business. This is the core of the project.

- But many countries that at the start of the negotiations announced the free trade area with The Customs Union froze or postponed them in light of the recent events related to Ukraine.

- Being an optimist I am convinced that sooner or later they will be reopened. Being a realist I can clearly say – the world events affect us directly. No one could say that everything is great with us and that is not our business, I think. What is the strength of, say, the WTC? We are not only in the Russian network, but at the same time we are a member of a large family of three hundred centers of the WTC Association around the world. The practical examples of how our efforts helped Russian entrepreneurs to establish contacts with their counterparts from other countries by using the WTC network would suffice. We have real capabilities to work with those countries where today, due to political considerations, the negotiations process halt has taken place. And if this process was commenced then that just supports a real interest of the both parties in the trade partnership. Thus we have to support the effort of the Government by commercial effort in order to solve the issue as soon as possible.