world news - 01.04.2008
EU urges Russia to reconsider rise in export duties on timber
Russian authorities said Tuesday the country was raising its tax on
exports to 25 percent, or ˆ15 (US$23.72) per cubic meter, Russian media
reported. The old rate stood at 20 percent, or ˆ10 (US$15.81) per cubic
meter. Russia is increasing its duties to bolster its national wood processing sector. EU spokesman Peter Power said the European Commission was dismayed
by Russia's decision, but he said EU and Russian negotiators were close
to a deal to resolve the dispute. "As you know, this issue figures prominently in the ongoing negotiations on Russia's WTO accession," Power told reporters. Russia needs to seal a deal with all the members of the World Trade Organization in order to join. Wood processing companies, especially those in Finland, Sweden and
some Baltic nations will be most affected by the higher duties,
officials said. Finland depends on imported Russian wood for its paper and pulp
industries. On Friday, Prime Minister Matti Vanhanen appealed to his
Russian counterpart, Viktor Zubkov, for a quick solution to the dispute. Over the last 15 years, Finnish companies have invested about ˆ1 billion (US$1.6 billion) in the Russian forest sector. The Finnish Forest Industries Federation has described the Russian
tariff increase as "a serious threat to Finnish companies' plans to
expand wood processing."
See also:
- — Pulpmills in Finland and Sweden increase pulpwood imports as domestic wood fiber costs rise
- — Illegal cuttings and the world market of wood
- — Forest education builds bridges in Balkans
- — Canada must adapt to climate impact on forests
- — Vietnamese woodworkers face high material costs
