Brussels, 17/03/2014 (Agence Europe) - In addition to the dialogue of the deaf on the trade agreement between the EU and Ukraine, the European Commission criticises the lack of progress on the bilateral areas of disagreement.
The situation seems to be becoming more tense between the Commission and the Russian government on the trade dossier. The meeting on 14 March between European Commissioner for Trade Karel De Gucht and Russia's Minister for Economic Development Alexei Ulyukeyev did not allow any progress to be made on the issues that anger the Commission - recurrent Russian trade restrictions against the EU. Brussels is indeed losing patience with Russia's slow pace at coming into line with its WTO obligations. In addition to its complaint against the Russian recycling tax for cars - which is already being examined by a special dispute body at the WTO (DS 462) - the Commission is targeting some sanitary and phytosanitary restrictions, and tariff rises on dozens of imported products since Russia joined the WTO in summer 2012.
On Friday, De Gucht reiterated his desire to see progress on resolving the most pressing issues facing EU exports - particularly the Russian ban on pork imports, which has been extended to the whole EU, since an outbreak of African swine fever was detected in Lithuania at the end of January (see EUROPE 11009). This is an embargo “based on alleged veterinary problems”, De Gucht repeated to his Russian host, deploring the fact that Moscow did not “show willingness to find solutions to this serious problem”. More generally, De Gucht “reiterated [the EU's] concerns that despite Russia's accession to the WTO, the Russian authorities appear to be taking steps backward towards a closed and protectionist economic environment”, said De Gucht's spokesperson, John Clancy, on Friday.
The divide between Brussels and Moscow remains equally wide on the issue of the EU and Ukraine moving closer together through the signature of an association agreement including the creation of free-trade area. On Friday, Ulyukayev underlined the concerns of the Russian authorities - which want to integrate Ukraine into the customs union between Belarus, Kazakhstan and Russia - as to the negative impact of an EU-Ukraine association agreement on the Russian economy. Here too, incomprehension continues. “In spite of a detailed preparatory discussion among experts, the Russian side was not able to demonstrate that there would be substantial negative economic impacts of these agreements on the Russia economy. The EU reiterates once again that the proposed DCFTA [deep and comprehensive free trade agreement] between the EU and Ukraine would help to modernise and stabilise Ukraine's economy which in turn would be a catalyst to stimulating increased trade between Ukraine and Russia”, said Clancy.
Quoted by Russian news agency Interfax, Ulyukayev stated that he had tried to explain to his European partners that Russia will in no way interfere in relations between the EU and Ukraine, but that it has a certain number of agreements with Kiev that must be reconciled. “European Commissioner De Gucht and I held important and complex talks today (…). I believe it is important we continue a dialogue, do not slam the doors, and do not allow emotion to dominate”, said Ulyukayev. On the EU side, the Commission is at the end of its tether. “In the light of the present circumstances not being conducive to a fruitful dialogue, no further meetings have been planned”, said Clancy on Friday. (EH)