Freitag, 23. August 2013

EU launching WTO consultations with Russia

On 9 July 2013, the European Union has launched consultations with the Russian Federation under the WTO dispute settlement procedure concerning the Russian vehicle recycling fee

Shortly after its accession to the WTO (on 22 August 2012) Russia introduced a vehicle recycling fee. According to applicable legislation, all vehicle producers have to pay this fee. However, an exception is made for Russian producers as well as for producers from Belarus and Kazakhstan (members of the Customs Union) who can give a guarantee of recycling their vehicles in the future. In this case they do not have to pay the recycling fee. Producers from other countries are not entitled to this guarantee option.
The European Union and a number of other WTO members find this provision discriminatory under WTO rules and tried to persuade Russia to change its laws. After several months of negotiations Russian officials said the issue would be solved and reported that necessary amendments were under way. The EU has set a deadline for such amendments on 1 July 2013, but the Russian Parliament was not able to complete the necessary parliamentary procedures before this date. The dispute is still pending.      

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