Brussels, 10/09/2012 (Agence Europe) - Less than two months after its formal accession to the WTO on 22 August, Russia has already been shown the yellow card by the EU (EUROPE 10672). The European Commission is planning to impose duty on imported vehicles, the embargo on imports of live animals and Moscow's abusive use of trade defence instruments.
Trade Commissioner Karel De Gucht called Russia to order on Friday 7 September, calling upon the country to respect its commitments to the WTO, which it formally joined at the end of August after 18 years of laborious negotiations. “Accession [to the WTO] is not the end of the road. It is a fork in the road, presenting Russia's leaders with a choice about the direction of their country. Some of the benefits of accession will come as a direct result of the clear, black-and-white commitments to opening that Russia has made. It goes without saying that these need to be implemented in accordance with what has been agreed”, De Gucht said at a seminar in Helsinki on economic and commercial relations between the EU and Russia. “The real prize - modernising the whole economy and establishing Russia as a safe and secure place to invest and do business - can only be achieved if Russia chooses to take the high road, by implementing the spirit as well as the letter of the WTO agreement", the commissioner stressed.
De Gucht referred to “a number of concrete dossiers” of Russian restrictions on trade causing “serious concerns” on the part of the European executive, citing, amongst others, the decree on recycling costs for imported cars, which could make the duty on imported vehicles higher than before Russia joined the WTO. Although it supports the underlying environmental objective of a tax of this kind, the EU nonetheless fears that its application to imported vehicles alone could discriminate against European producers and does not comply with WTO rules. The commissioner also referred to the embargo on imports of live animals, which he feels is “highly disproportionate” to the risks from which it is intended to protect the country. Lastly, De Gucht spoke out against Russia's abusive use of trade defence procedures against exports to its market for steel products, commercial vehicles and combine harvesters, which he described as a “bad sign” for the liberalisation effort expected. “Russia should understand that Europe takes [the dispute settlement] mechanism very seriously”, he said, warning that the EU “will not hesitate to enforce our rights where they are violated”. (EH/transl.fl)