The European Union Has Started a Third Dispute Within the Frameworks of the WTO Against the Russian Federation

On May 21, 2014, the European Union has submitted to the WTO's Secretariat a request to hold consultations with the Russian Federation on antidumping duties introduced by the Eurasian Economic Commission on low-tonnage trucks from Germany and Italy.

It is to be reminded that on May 14, 2013 on the basis of the outputs of the antidumping investigation the Eurasian Economic Commission made a decision to introduce for the term of five years antidumping duties on import of light commercial vehicles from Germany, Italy and Turkey to the territory of the Customs Union. The decision became effective on June 16, 2013. The antidumping duty for all the German manufacturers amounts to 29.6% of the customs duty, while that for Italian and Turkish manufacturers, to 23% and 11.1%, respectively. The antidumping duty is added to the current customs duty of 10%.

The European Union claims that the above measures are incompatible with Russia's obligations as regards different articles of the 1994 GATT and antidumping agreements. As stated in the press-release of the European Commission, the antidumping duties "complicate a great deal the access to the Russian market" and "the export of light commercial vehicles from Germany and Italy did not benefit from concessions made by Russia due to accession to the WTO in 2012".

The Russian Federation believes that the EU's claims as regards antidumping duties on import of light commercial vehicles to the territory of the Customs union are unjustified. The above measure complies in full with Russian obligations to the WTO. In accordance with the WTO rules, an antidumping investigation was carried out and it revealed dumping import – which causes material damage to economic sectors of member-states of the Customs Union – from Germany, Italy and Turkey.

Russia is prepared to hold consultations which provide an opportunity for the parties to the dispute to discuss that issue and find within 60 days an admissible solution without further litigations. If the dispute fails to be resolved by means of consultations, the European Union may send a request to establish an arbitral group.

Nadezhda Volovik, Head of the Foreign Trade Department