Sweden, Finland make timber stumbling-stone in Russia-talks

Swedish and Finnish authorities might make Russian export tariffs on round timber a major problem issue in the upcoming partnership talks between the EU and Russia.

For Sweden and Finland, the troubling situation in the Caucasus will not be the main problem issue in the upcoming EU-Russia talks in Nice, France. The two Nordic countries, both close neighbours to Russia, will be more interested in timber, the Moscow Times reports.

Both countries are keen on preventing a the sharp surge in tariffs on Russian round timber exports, scheduled to take effect on Jan. 1. Finnish and Swedish pulp and paper companies say that the Russian timber protectionism poses a threat to their industries.

Russia on the other hand argue that the tariff increase is necessary for the development of its own timber processing industry.

“Export tariffs are the main individual trade policy problem between the EU and Russia,” Finland’s minister for Foreign Trade and Development, Paavo VКyrynen, said by e-mail message to the Moscow Times on Monday.

“I respect [Russia’s] ambition to diversify, to modernize their industry, but closing one’s borders is the wrong way to go,” Swedish Trade Minister Ewa Bjorling said by telephone to the newspaper. “[Sweden] opened up its border to more international trade, and that’s how we created our prosperity, and that should be the same recipe for other countries.”

From January 1, the Russian tariffs are set to increase from the current 15 euros to 50 euros per cubic meter. That is about 80 percent of the log value.

Read also:

Less exports do not give more domestic processing 16 October 2008

Russia migth impose ban on timber exports 2 October 2008

Russian tariffs hurting Finland 12 September 2008

“Finland imports illegal timber“ 28 July 2008

Counter-measures from Finland 27 June 2008

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