US companies that operate in Russia complain that the Russian government taxes them at a higher rate than they tax domestic Russian companies. What legal recourse does the US company have to dispute this? Explain and Discuss. be specific
In this case, US companies can seek redress at the WTO dispute settlement body on the basis that Russia has violated the National Treatment (NT) provision of the WTO. Violation of this provision has occurred in the sense that foreign companies are being subjected to treatment which is less favorable than that which is accorded to domestic companies.
The US may request for consultations with the Russian government over the matter. In the event that consultations are not granted within 10 days or a favorable outcome is not achieved within 30 days, the US may request for formation of a panel to consider the matter. Rulings of the panel may be appealed within sixty days before the appellate body. There may also be a need for the US to submit the matter before domestic arbitration bodies if such provisions are set out in the agreement between the two countries.
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