Tuesday, July 9, 2013

EU to Sue Russia in First WTO Dispute

In September, the World Trade Organization may start hearing the first dispute between Russia and the European Union since Moscow joined the organization, if the two sides fail to settle the issue of Russia's vehicle recycling levy out of court, the Economic Development Ministry reported on Tuesday. The EU will launch its claim against Russia at the WTO later on Tuesday, challenging Moscow's recycling levy on imported cars, Reuters reported on Tuesday, citing EU diplomatic sources. "We gave Russia until July 1 to lift these recycling fees and it failed to do so, so that is why we are taking this to the WTO. Hopefully this can be resolved quickly. It is important that Russia, as a WTO member, plays by global trade rules," Reuters quoted an EU diplomat as saying. The EU has criticized Moscow’s recent introduction of a disposal fee on car imports, arguing that the charge is actually a protectionist move under the guise of an environmental measure, levied to shield domestic car producers from increasing competition since Russia joined the WTO.

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