EU and Russia squabble over Russian import tariffs continues

BOFIT Viikkokatsaus / BOFIT Weekly Review 2015/12

In late February, the European Commission asked the WTO to assemble a dispute panel to rule on import duties imposed by Russia on paper products, refrigerators and palm oil. Russia’s duties exceed rates Russia committed to in its 2012 WTO agreement. Russia presently imposes a 15 % import duty on paper products, even if its WTO obligations limit the duty to 5 %.

Last October, the EU submitted a request for WTO consultation on the matter. As the consultation produced no results, the EU called on the WTO to form a dispute panel. Should the panel find that Russia violated WTO rules, the WTO Dispute Settlement Body would be empowered to demand compensation from Russia and grant the EU the right to countermeasures.

The WTO filing is the fourth EU claim against Russia. Earlier complaints had to do with recycling fees on imported cars and restrictions on pork imports. Russia, in turn, has complained to the WTO about the EU’s methodology for calculating dumping pricing, as well as the EU’s “third energy packet,” which Russia asserts is a restriction on Gazprom activities within the EU.

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