world news - 26.10.2007

Russia might drop export tariff increase on timber

Russia has submitted fresh proposals to the EU aimed at solving the dispute over wood import tariffs. The Russian proposals might call for the freezing of import tariffs at current levels, Yle News reports.

Finland fears the planned major Russian export tariff increase could endanger economic growth in the country. If the tariff increases are fully implemented in 2009, imports of Russian timber could come to a halt leading to cuts in forest industry production and personnel, Yle News reports.

According to unconfirmed information received by YLE from the European Commission, the Russian proposals call for freezing import tariffs at current levels.

Finnish and Swedish authorities have earlier said they might try to hinder Russia' entry into the World Trade Organisation should the country uphold its planned timber tariff plans.


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