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Europe Daily Bulletin No. 9321
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GENERAL NEWS / (eu) eu/competitiveness

Verheugen proposes 50% reduction in Russian aluminium import taxes that penalise Polish industry

Brussels, 05/12/2006 (Agence Europe) - The question of customs duties on imports of unwrought Russian aluminium (EUROPE 9200), raised during the last session on 26 May, was put on the table again by the Polish delegation at the Competitiveness Council on 4 December. In application since enlargement in 2004, customs duties are set at 6% on Russian aluminium imports into the Community market and very sharply penalise Polish industry using aluminium and raw materials. Polish processing companies that use large quantities of aluminium have seen their purchasing price of this raw material increase considerably due to import tariffs. Russia is also the biggest provider of aluminium to Poland (50% of all aluminium imported). During Monday's Competitiveness Council, Industry Commissioner Günter Verheugen proposed that the Council immediately reduce duties on unwrought aluminium from 6% to 3%. In an interview with Reuters he said that this was a “first step”. Last May, several Member States had seen a significant number of companies in their aluminium processing industry suffering from the same problems as Polish industry and gave their support to Warsaw's request for a reduction, indeed, the suppression of taxes on Russian aluminium imports. On Monday, none of the delegations intervened when the Polish delegation reaffirmed its concern about the absence of progress in this dossier. Poland is still awaiting a draft regulation from the Commission aiming to get rid of duty on aluminium from Russia. There are a lot of misgivings, however, at the Council: Germany, which has a significant aluminium production industry and is expressing international competitive pressure, remains opposed to the Polish demand. Community sources have indicated that Berlin could have the support of Spain, France, Greece and the Netherlands. (eh)

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