WTO rules in favour of the EU in dispute on Russian duties on light commercial vehicles | WPN World People News

A World Trade Organisation (WTO) panel on 27 January declared as illegal the Russian anti-dumping duties that hinder exports of Italian and German light commercial vehicles (LCVs).

The panel ruled that Russia failed to observe a number of WTO rules when introducing the anti-dumping duties in 2013, which range from 23% to nearly 30% and affect exports of Italian and German vehicles.

This is just one example of multiple measures taken by Russia in the recent years against EU exports. The panel's findings remind Russia that its international obligations cannot be ignored.

"I am glad to see a very clear ruling by the WTO against one of the unfair, protectionist and anti-competitive measures that we see today in Russia. The duties on light commercial vehicles are not in line with commitments by Russia at the time it joined the WTO. Those measures now have to be removed. I hope to see Russia honouring its international obligations and respecting this ruling without delay", said Trade Commissioner Cecilia Malmström.

The panel agreed with the EU on all procedural claims and recognised several problems with the analysis by Russia that led to the introduction of duties. By excluding certain domestic producers from their calculations, the Russian authorities based their analysis of the damage allegedly caused to the domestic industry on unrealistic figures. While assessing the effects of the alleged dumping, the authorities disregarded another factor: the overcapacity in the Russian LCV sector, which stood at that time at seven times what is actually sold on the Russian market.

The parties have 60 days to appeal the decision. Otherwise, Russia will be expected to remove its anti-dumping duties on LCVs from the EU.

source: European Commission