AFP, Geneva :
The European Union said Wednesday that it had launched a fresh challenge to Russia at the World Trade Organization, seeking to strike down Moscow’s import duties on vans from Germany and Italy.
The EU’s diplomatic mission at the Geneva-based WTO said it had filed a formal request for consultations with Russia, the first step towards a full-blown trade dispute.
In Brussels’ sights are the anti-dumping duties that Russia has slapped on so-called “light commercial vehicles” (LCVs) made by Germany and Italy, both of which are leading global players in the auto sector.
“The EU believes the anti-dumping duties are incompatible with WTO law, both on procedural and on substantive grounds,” the EU mission said in a statement.
Both sides now have 60 days to try to negotiate an end to the dispute, before the EU has the option of asking for a ruling by a WTO disputes panel-a process that can last for years, amid appeals, counter-appeals and compliance assessments. Moscow rejected EU claims of any wrongdoing.
“We consider that our measure fulfils our WTO obligations completely. We’re ready to work closely with a panel to find a solution to this dispute,” Maxim Medvedkov, Russia’s chief trade negotiator, was quoted as saying by the news agency Ria Novosti.
WTO members are allowed to impose extra duties when goods are being “dumped” on them or sold at below market prices to grab business. But they must prove that their domestic producers are suffering as a result of dumping, and that they are not simply deploying duties to hobble foreign firms’ trade.
