WTO has confirmed the Russian anti-dumping duties on LCVs are illegal

WTO has confirmed the Russian anti-dumping duties on LCVs are illegal

RusAutoNews.Com – The Appeal Panel of the World Trade Organisation has confirmed the inconsistency of the anti-dumping duties applied by Russia on the light commercial vehicles (LCV) imported from Germany and Italy with the requirements of the WTO. The relevant decision has been published on the website of the organisation.

In the meantime, the appeal organ has also imposed requirements to Russia on the cancellation of the anti-dumping duties, which are against the rules of international trade.

“I am glad to see that the WTO Appellate Body confirmed the 2017 WTO ruling. It’s important that every member of the WTO plays by the rules. That’s what the EU is doing and we are expecting our partners to do the same. I’m looking forward to those measures being removed, so that our exports of commercial vehicles can benefit from a level-playing field on the Russian market,” said EU Trade Commissioner Cecilia Malmström.

As reported, the dispute was initiated by the EU in May 2014, in connection with the anti-dumping measures taken by the Eurasian Economic Union (EEU) against the LCVs manufactured in Germany and Italy.

The Eurasian Economic Commission has increased the duties from 23% to 29.6% on German and Italian LCVs in mid-September.

The decision covers the diesel engine LCVs between 2.8-3.5 tonnes inclusive gross weight with a cylinder capacity below 3000 cm3. The body types for the vehicles in question are as follows: van, cargo panel van modification (designed for the transport of goods up to 2 tonnes inclusive) or combi – passenger and freight van versions (designed for transport of both goods and people). The Ministry of Industry and Commerce had started to investigate the LCV shipments to the domestic market in November 2011, on the basis of an application made by Sollers Group.

The WTO Panel of Arbitrators has recognised the illegality of the anti-dumping duties on the imports of German and Italian LCVs to the Customs Union countries.

Russia did not agree with the decision and appealed against the findings of the panel, carrying the subject to the WTO appeal body in February 2017.

“The disagreement of the Russian side with the decision of the arbitrators was the reason for the appeal. The Panel of Arbitrators found most of the EU claims unfounded in a report published on 27 January 2017, however, also found inconsistencies in some aspects of the investigation conducted by the EEC with the rules of the WTO. Russia will seek to review of the findings of the panel as to the violations of WTO rules” – as noted by the Ministry of Economic Development.

The current decision of the WTO appellate body is final and it will be formally approved in 30 days by the WTO dispute settlement body.