Timber might block Russias road to WTO
From 1 April, Russia increases export tariffs on timber with 25 percent. The move might block the countrys desired inclusion in the World Trade Organisation (WTO)
The tariff increase on Russian timber is contradicting EU’s terms for Russian WTO membership, and the union might now decide to block the Russian membership in the prestigious trade club, newspaper Rossiiskaya Gazeta reports.
Russia argues that the timber tariff increase will help boost investments in Russian forestry processing, thus reduce dependency of raw material exports. The importers of the Russian raw material have however protested strongly against the measure.
From 1 April this year the tariffs are increased with 25 percent to a minimum of 15 EUR per cubic meter. After 1 January 2009, the tariff increase will be boosted by another 80 percent to at least 50 EUR/cubic meter, which will imply an actual stop in the country’s timber exports.
The issue is especially sensitive for Finland, which imports 20 percent of its timber from Russia. Considering that the forestry sector accounts for about 16 percent of Finnish GDP, the Russian tariff increase might have dramatic consequences.
The Russian forestry exports in 2007 had a total value of 8,3 billion USD, of which round timber accounted for about 4 billion USD, Newsru.com reports. The biggest importers of the Russian raw material is China (60%) and the EU (22%)
Photo: Barentsphoto.com
