European Commission voices concern after Russian duty rise
The European Commission has voiced its discontent at Russia's
decision to increase timber export taxes for a second time and said
that it will make the country's accession to the World Trade Organisation (WTO) harder.
Russia increased the rate of its export duties for timber to €15/m3
on April 1, with the aim of increasing processing within its borders. A
further increase is scheduled for the beginning of 2009, when the cost
will rise to as much as €50/m3.
The European Commission said that the decision would make it harder to source timber in the EU and affect trade flows, leading to plant closures and job losses across the continent.
It
also said that Russia's ongoing attempt to join the WTO would be
hindered by the decision due to the negative impact it will have on the
EU's economy.
"These increased duties
will have significant economic impact on the wood processing industry
in the EU," said European Commission spokesperson Peter Power.
"We
have been very close to an agreement on this issue and the other
remaining outstanding bilateral issues in Russia's WTO accession.
"It is obvious that the decision to go ahead with the increase in export duties will not make the situation easier."
Mr
Power added that the European Commission still believes it will be
possible to find a "mutually acceptable solution" to the issue and see
"Russia firmly anchored in the international trading system".
