The World Trade Organization (WTO) for the first time made a decision not in favor of Russia. In the WTO, it has recognized the illegality of the use of import duties on certain categories of goods. Russian import duties on paper, refrigerators and palm oil do not correspond to the rules of the organization. This is the conclusion of the WTO panel of arbitrators, according to an official report. The report’s findings may be appealed within 60 days from the date of publication of the decision.
The European Union has initiated consultations with Russia on the issue of taxes on palm oil, refrigerators and paper products 31 October 2014. According to the EU, established by Russian import duties are inconsistent with the General Agreement on Tariffs and Trade (GATT) 1994 and the 1-7 th articles of the Customs Valuation Agreement.
February 26, 2015 the European Union has requested to create a panel of arbitrators to consider. The panel was established on 25 of March. It first entered as the third parties, Brazil, Canada, Chile, China, Colombia, India, Japan, Korea, Moldova, Norway, Ukraine and the United States. Later, she was joined Australia and Singapore
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The European Union opposed 12 Russian import tariffs. In particular, the European Commission appealed to the fact that on paper articles Russia has applied tariffs of 10 to 15%, whereas when joining the WTO, Russia has agreed to a fee of 5%.
The export volume of paper Russian products in the EU estimated at € 240 million per year. With respect to palm oil and refrigerators Russia undertook to apply the rate of 3%, but not less than € 0.09 per kg and 16.7%, but not less than € 0.13 per liter, respectively. But in practice, the import duty levied higher, depending on the customs value of goods. The annual export volume of palm oil from the EU to Russia is estimated at € 50 million, refrigerators -. To € 150 million
arbitrators panel largely backed the EU and acknowledged that 11 of 12 the contested measures did not meet the obligations of Russia.
Only one of the measures, according to the WTO arbitrators, the EU was unable to provide sufficient evidence to establish a violation on the part of Moscow, according to the materials of the organization. This measure refers to the systematic variation of duty in Russia.
The Ministry of Economic Development have acknowledged that a number of Russian tariff solutions “for technical reasons” did not correspond to WTO obligations. “Therefore, even before the dispute of the European Commission had proposed a specific timetable for eliminating inconsistencies, which was practically implemented in the beginning of the meetings of arbitrators”, – stated in the department
«Our proposal for the termination or suspension of the dispute, in fact, were. rejected by the EU Commission. Referees have been forced to consider a non-existent situation where all but two rates were brought in line with the commitments. The remaining two – on paper and refrigerators – will be adapted in the nearest future. ” The mayor added that Russia has no plans to challenge the decision of the WTO arbitrators, and will apply to the Eurasian Economic Commission for entry in the Common Customs Tariff adjustments in accordance with Russian commitments to WTO members.
The fact that Russia now been corrected most of the comments, and acknowledged in the report of the WTO panel of arbitrators. In particular, it specifies that the comments on the duties on refrigerators and palm oil have been corrected even by 1 September 2015.
This is the first decision taken by the organization is not in favor of Russia, which was the only member of the WTO in 2012. “Russia has only recently stepped into the WTO, and the first litigation, especially not in our favor, perceived painful. Meanwhile, the arbitration of the WTO – the normal mechanism for the settlement of interest, such a mechanism used by all the countries examined dozens of lawsuits. Many countries are in favor and the plaintiffs and defendants, and it normally works, a healthy mechanism, he is much more rapid and efficient than the WTO itself, “- said in a conversation with” Gazetoy.Ru “chief economist of the Eurasian Development Bank Yaroslav Lissovolik
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In his opinion, Russia should more effectively use this mechanism to strengthen its export position. “In the future this kind of proceedings will inevitably increase,” – warns Lissovolik.
Russia is a defendant in several lawsuits still from the EU and Japan, which relate to a tax for scrappage, a ban on the export of pork from the EU anti-dumping measures on light commercial vehicles. Russia is also a plaintiff in an attempt to challenge the EU’s decision on energokorrektirovkam and the third energy package.
It is not excluded Russia appeal to the WTO in response to the introduction of anti-dumping duties on Russian cold-rolled steel from the EU. The final decision the European Union adopted at the beginning of August this year: on hire from NLMK was introduced at a rate of duty of 36.1% on cold-rolled steel from MMK – 18.7% of “Severstal” – 34%
. However, when referring to the WTO need to be aware of the main issue of arbitration of disputes within the organization – their duration. Therefore, the most logical way out in this case for Russian steelmakers – “to adjust and focus more on the domestic market,” the analyst Kirill Chuiko BCS. “Russian steelmakers may try to challenge the fees, but there are few prospects. A more logical solution would be for them to focus more on the domestic market and the transition to the production of value-added products (eg, metal) “- agrees analyst Andrew Tretelnikov TKC Partners
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