Russia on the Mat at WTO Over Vehicle Recycling Fee

The EU has formally lodged a WTO complaint against Russia, in what marks Moscow’s first dispute at the global trade body since it joined in August 2012. At issue in the case (DS462) is a vehicle recycling fee, which Brussels claims discriminates unfairly between imports and their domestic equivalents.

The controversial recycling fee entered into force in September of last year, shortly after Russia’s WTO accession. The fee ranges from €420 to €2700 for new cars, and a €2600 to €17,200 fee for cars older than three years. Other vehicles, such as certain mining trucks, face fees up to €147,700, the EU says.

Russian vehicles, along with those from customs union partners Belarus and Kazakhstan, are exempted from the fee if they meet certain conditions. The EU, however, is not eligible for exemptions. The 28-country bloc argues that this distinction discriminates between foreign goods and their domestic counterparts, and is therefore in violation of WTO rules.

The EU’s move to challenge the measure makes good on a promise Brussels made earlier this year to launch a WTO dispute should Moscow not remove its recycling fee by 1 July.

The EU, US, and Japan are slated to raise the issue of Russia’s adherence to WTO commitments at today’s meeting of the Goods Council, according to a proposed agenda available on the organisation’s website.

With this being Russia’s first case at the global trade arbiter- either as a complainant or a respondent - many in the trade community are likely to watch closely to see how the country adapts to the WTO dispute settlement system. Moscow may itself be lodging a complaint in the coming days against Brussels on anti-dumping duties being imposed on Russian fertiliser.