- The report, prepared with the aim of implementing EU trade protection procedures, examines Russia's macroeconomics, key pricing factors.
- The Russian Ministry of Economic Development linked the release of the European Commission report with Russia's victory in the dispute at the WTO on the energy adjustments.
- The Russian Deputy Minister stressed that Russia will use all available legal mechanisms to counter the EU's anti-dumping practices, which violate WTO rules.
The European Union may impose anti-dumping duties on the Russian goods according their report. The provisions of the European Commission report on “significant distortions of market mechanisms in the Russian economy by the Government” can be used to introduce EU anti-dumping duties on Russian goods.
The European Commission is the executive branch of the European Union, responsible for proposing legislation, implementing decisions, upholding the EU treaties and managing the day-to-day business of the EU.
“The report, prepared with the aim of implementing EU trade protection procedures, examines Russia’s macroeconomics, key pricing factors, including the labor and energy markets, as well as individual sectors of the economy, including steel, aluminum and chemicals production. The authors of the report record significant distortions of the economy organized by the Government.”
It is noted, that the report of the European Commission creates a legal basis for future anti-dumping investigations in relation to a wide range of Russian export products, since it allows you to appeal to signs of state regulation at the macroeconomic level. This can be linked to the justification of charges of underestimating the market price of almost all types of products produced in Russia.
“Our anti-dumping legislation provides us with trade protection tools that are suitable for responding to current challenges while complying with WTO rules. Today’s report will be another element of our tools to combat unfair trade, ” said first Deputy Head of the European Commission Valdis Dombrovskis.
The Russian Ministry of Economic Development linked the release of the European Commission report with Russia’s victory in the dispute at the WTO on the energy adjustments. This was reported to TASS in the press service of the Department with reference to Deputy Minister Vladimir Ilyichev.
In July of this year, Russia won in the WTO arbitration. The World Trade Organization (WTO) issued a report regarding EU dumping methodologies and duties on Russian imports. The WTO agreed with the Kremlin’s view, that the EU principles for determining prices in anti-dumping investigations violate the organization’s rules.
The WTO is the only global international organization dealing with the rules of trade between nations. “This in itself is an example of extremely unfair behavior on the part of a WTO member who positions himself as a” friend of the multilateral trading system, ” the official stated.
The Deputy Minister stressed that Russia will use all available legal mechanisms to counter the EU’s anti-dumping practices, which violate WTO rules.
Overall, the report is not a surprise to Russia. This has been ongoing scenario for some time now. The Kremlin stated that Russia is reviewing the report and will release an official response in the upcoming weeks. It is highly likely, Russia will have the arbitration in the future. The EU continues its activities and it would be plausible to expect for Russia to challenge the report and any ramifications as a result of the aforementioned report.
In conclusion, given the EU economy due to the Coronavirus pandemic and continues tensions with Russia escalated due to the Alexey Navalny poisoning situation, the challenges will continue.