Russia gets angry with Ukraine due to its automotive industry, media reports say
Russia is ready to impose economic sanctions against Ukraine, defending the interests of its automotive industry.
On July 9 Russia registered such a notification at the WTO Council for Trade in Goods, according to Kommersant Ukraine.
"Ukraine's special duty on all imports of cars has forced the Customs Union to proceed to the introduction of retaliatory economic sanctions. Yesterday Russia registered a notification at the WTO Council for Trade in Goods. In a statement, whose copy is available at Kommersant-Ukraine, it is noted that the loss of the Russian Federation on the basis of foreign trade data for 2012 is estimated at $ 36.1 million a year. To compensate it is proposed to increase or impose duties on a number of Ukrainian products imported to the Russian Federation," the article writes.
Higher duties that the Customs Union wants to introduce will touch upon the Ukrainian chocolate, sugar, float glass, as well as coal.
Ukraine on April 13 introduced a three-year special duty on cars import with an engine capacity of 1-1.5 liters (6.46%) and 1.5-2.2 liters (12.95%) at the basic duty rate of 10%. The move sparked protests in several countries, including the EU, the USA and Japan. As it became known, the agenda of a meeting of the WTO Council for Trade in Goods, scheduled for July 11, includes three points with claims of other countries against Ukraine. In particular, Japan will make a statement on the introduction of import car duties by Kyiv. Meanwhile, one of the WTO members has already decided to apply retaliatory sanctions. On July 12, Turkey will have the right to introduce additional duty on walnuts imports from Ukraine of 23%.
Unlike Turkey, which immediately set the possible date of increase of duties - a month after the registration of its application at the WTO - the decision of the Russian authorities still needs confirmation of the Eurasian Economic Commission (EEC), the executive body of the Customs Union.
In 2012 the major exporters of passenger cars to Ukraine were the WTO member countries, such as South Korea ($310.9 million), the U.S. ($160.8 million), China ($99.8 million), Thailand ($38.8 million) and India ($15.9 million).
Adapted from UKRINFORM
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