ALEXANDER KNOBEL: “THE WTO ARBITRATION PANEL SUPPORTED RUSSIA IN THE DISPUTE WITH THE EUROPEAN UNION"
The World Trade Organization (WTO) supported Russia in a dispute with the European Union on the method of anti-dumping measures, reports RBC. Alexander Knobel, Head of the International Trade Department of the Gaidar Institute, explains the meaning of disagreements with the European Union on the use of so-called energy adjustments.
“Russia, as a country rich in natural resources, has the opportunity to sell energy resources at the world market at prices that are offered by the world or large regional markets, and domestically, at prices significantly lower than international ones. Foreign manufacturers claim that Russian companies gain competitive advantages due to access to cheaper natural resources rather than through their efficiency”, Alexander Knobel believes.
The expert explained: “These are the roots of the claims of European manufacturers against Russian competitors, and they somehow contributed to the application of energy adjustments in the course of anti-dumping investigations. For example, they said that since cheap electricity can be used in aluminium industry in Russia, then, they get unfair competitive advantages.
The energy adjustment methodology compares prices for energy resources within Russia against prices at the European market.
According to Alexander Knobel, “the decision of the arbitration panel will make it possible to more effectively counteract the anti-dumping investigations against Russian exporters,” having explained that this is primarily important for the Russian metallurgical and chemical industries.
The expert of the Gaidar Institute concluded: “The decision can be challenged by the European Union in the WTO Appellate Body, whose activities are now paralyzed, since the United States refuse to approve the candidatures of judges. Herewith, there are already precedents, when disputes ended in the agreement of the parties agreed with the decision of the arbitration panel without filing an appeal.
The expert explained: “These are the roots of the claims of European manufacturers against Russian competitors, and they somehow contributed to the application of energy adjustments in the course of anti-dumping investigations. For example, they said that since cheap electricity can be used in aluminium industry in Russia, then, they get unfair competitive advantages.
The energy adjustment methodology compares prices for energy resources within Russia against prices at the European market.
According to Alexander Knobel, “the decision of the arbitration panel will make it possible to more effectively counteract the anti-dumping investigations against Russian exporters,” having explained that this is primarily important for the Russian metallurgical and chemical industries.
The expert of the Gaidar Institute concluded: “The decision can be challenged by the European Union in the WTO Appellate Body, whose activities are now paralyzed, since the United States refuse to approve the candidatures of judges. Herewith, there are already precedents, when disputes ended in the agreement of the parties agreed with the decision of the arbitration panel without filing an appeal.