Canadian Lawyer InHouse

INHOUSE EDITOR'S BOX By Jennifer Brown www.canadianlawyermag.com/inhouse Group Publisher: Karen Lorimer karen.lorimer@thomsonreuters.com Editorial Director: Gail J. Cohen gail.cohen@thomsonreuters.com Editor: Jennifer Brown jen.brown@thomsonreuters.com Staff Writer: Michael McKiernan michael.mckiernan@thomsonreuters.com Copy Editor: Katia Caporiccio Art Director: Bill Hunter Account Co-ordinator: Catherine Giles Advertising Sales Representatives Legal Suppliers: Kimberlee Pascoe Tel: (416) 649-8875 E-mail: kimberlee.pascoe@thomsonreuters.com Law Firms: Karen Lorimer Tel: (416) 649-9411 E-mail: karen.lorimer@thomsonreuters.com Sales Co-ordinator: Sandy Shutt Tel: (416) 649-8864 E-mail: sandra.shutt@thomsonreuters.com Canadian Lawyer InHouse is published 6 times a year by Thomson Reuters Canada Ltd., One Corporate Plaza 2075 Kennedy Rd., Toronto ON. M1T 3V4 (416) 298-5141. Fax : 416-649-7870 Web: www.canadianlawyermag.com/inhouse LinkedIn group: www.goo.gl/9tytr Editorial advisory board: Robin Brudner, MLSE Ltd.; Sanjeev Dhawan, Hydro One Networks Inc.; Kari Horn, Alberta Securities Commission; Jonathan Lau, TVO; Janis Vanderburgh, York Region Rapid Transit Corp. All rights reserved. Contents may not be reprinted without written permis- sion. The opinions expressed in articles are not necessarily those of the publisher. Information presented is compiled from sources believed to be accurate, however, the publisher assumes no responsibility for errors or omissions. Canadian Lawyer InHouse disclaims any warranty as to the accuracy, com- pleteness or currency of the contents of this publication and disclaims all liability in respect of the results of any action taken or not taken in reliance upon information in this publication. Publications Mail Agreement #40766500 ISSN 1921-9563 Copyright © 2012 H.S.T. Registration #R121349799 To subscribe or change addresses Call (416) 649-9926 Fax (416) 649-7870 or e-mail Ellen Alstein at ellen.alstein@thomsonreuters.com RETURN UNDELIVERABLE CANADIAN ADDRESS TO: CIRCULATION DEPARTMENT One Corporate Plaza 2075 Kennedy Rd., Toronto ON. M1T 3V4 Indexed in the Canadian Periodical Index INHOUSE APRIL 2012 • 3 of lengthy and complex negotiations between Russia, its trading partners, and WTO members, which lasted 18 years. Now that the country has joined the T WTO, it must live up to certain obliga- tions to fairly treat businesses looking to trade with it and not be discriminatory. It means it can't impose import or export controls unfairly, which should create a better environment for businesses oper- ating there. It means there should be an increase in trade in that part of the world by companies — including Canadian organizations — that have been staying away. Many, like Bernie O'Rourke, senior vice president and general counsel of I.M.P. Group International Inc., featured in our cover story this month (see page 18), believe it's a shame more Canadian companies aren't doing more business in Russia — and that's coming from some- one who learned the hard way how to navigate what can be treacherous terri- tory. He sees a great, untapped market for Canadians to expand into. Although some Canadian businesses have shied away from Russia, bilateral trade actually reached $2.8 billion in 2010, up 12.3 per cent from a year earlier. Russia is a major market for Canadian machinery, seafood, and aerospace prod- Ready to rush in? his spring Russia formal- ly joins the World Trade Organization. The news was announced in Decem- ber 2011 and was the result ucts, and is an exporter of fertilizers and chemical and steel products to Canada. The traditional path a Canadian busi- ness has used to get involved in a new market like Russia is to retain an agent or consultant to help navigate and interpret the red tape and cultural differences. That has been critical in the past largely due to the level of corruption in the country. "Russia does have a high degree of cor- ruption privately and publicly and the Corruption of Foreign [Public] Officials Act does only apply to foreign public officials," points out John Boscariol, head of the international trade and investment group at McCarthy Tétrault LLP. Boscariol cautions that WTO mem- bership aside, it doesn't necessarily mean Russia is entirely open for business or that companies should rush in. He wonders if a tiger like Russia can truly change its stripes. "What will be interesting is when the disputes come up and Russia hasn't changed their laws, or it tries to favour their domestic products and services and a government then decides to bring a case before the WTO," he says, pointing to a similar situation when China joined the WTO in 2001. "A lot of cases were brought against China and it looks like China is trying to comply now." It may be, though, that a combination of sagging economies in other European nations and the urgent need to attain critical growth abroad will push Canadian companies to look at Russia in a new light now and push forward with a strategy to make inroads there. With the right legal counsel along for the ride, of course. IH Send your news and story ideas to jen.brown@thomsonreuters.com

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