Economy

Russia to Reduce Tariffs on EU Paper and Refrigerators Following WTO Ruling, Reports Reuters

ZURICH (Reuters) – A World Trade Organization (WTO) ruling on Friday declared that Russia has breached its trade commitments by imposing inflated tariffs on palm oil, paper, and refrigerators imported from the European Union. This marks the WTO’s first ruling on Russia since its accession in 2012.

The decision follows allegations from the EU that Russia implemented tariffs exceeding permissible levels on these products in 2014, with subsequent attempts at resolution between Brussels and Moscow proving unsuccessful.

In response, Russia stated that it has already lowered most of the contested tariffs and plans to further reduce those on paper and refrigerators soon. Russia’s Economy Ministry acknowledged in a statement that technical reasons had led to discrepancies in the import tariffs compared to the commitments stated in its tariff liabilities.

The EU argues that these elevated duties have negatively impacted exports valued at approximately 600 million euros (around $670 million) annually. Following the WTO’s decision, the European Commission emphasized that it underscores Russia’s failure to adhere to its trade obligations.

The Commission remarked, “Despite being a WTO member since August 2012, Russia has not yet fulfilled some of the commitments made prior to its accession,” highlighting the importance of adhering to customs duties that do not exceed agreed levels.

The Commission also noted that Russia has taken some steps towards compliance concerning certain measures since the panel’s deliberations began.

Additionally, EU officials clarified that this issue is not related to the ongoing tensions between the West and Russia over the Ukraine conflict. In its ruling, the WTO panel sided with the EU on 11 out of 12 disputed measures, asserting that Russia’s tariff practices do not align with its WTO commitments.

Beyond this particular dispute, the EU has initiated proceedings regarding other trade barriers it claims Russia has imposed, including recycling fees on automobiles, a ban on pork imports, and anti-dumping duties on light commercial vehicles. These issues remain unresolved.

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