Tuesday, September 11, 2012

Russia - Will it be challenged at the WTO again?

It is barely a month into the WTO for Russia and it seems it may have to brace itself for a second challenge, this time from Netherlands and the EU. I had blogged earlier about a possible complaint from Ukraine and other countries on the recycling duties on automobiles that came into effect from September 1st 2012.

Bloomberg reports that the Dutch Product Board for Margaraine, Fats and Oils, MVO is contemplating moving the Dutch government to take up the issue of Russian duties on vegetable-oil that is beyond the bound commitments of Russia under GATT.

Now, this seems to be a straightforward violation of WTO obligations unless there is a misreading of the provisions. Either the Russian administration has overlooked the WTO commitments or has interpreted it differently. Either way, it would have to do some explaining if the EU decides to take it up at the WTO.

Time for Russia to get its legal capabilities tested at the multilateral trade forum?

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