Meat war with the EU will cost Russia dearly

10 January 2018, 13:27 | Economy
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Suppliers of hydrocarbons, metals, chemicals and other products to the foreign market could be seriously affected if the WTO complies with the EU's lawsuit on the restrictions on the supply of meat to Russia. In any case, the trial will be extremely difficult for our country, experts say.. The EU authorities estimated the damage from banning the import of pork and live pigs into our country in the amount of 1.39 billion euros per year. Brussels does not ask Moscow for financial compensation. But he intends to fix the losses and demand from the World Trade Organization (WTO) the right to ban the supply of goods from Russia for this amount with an additional 15% surcharge, recalls "The newspaper. RU". For consideration of the issue, the European Union was convened by the panel of arbitrators of the WTO. The EU insists that the barrier to pork is politically motivated, and not related to sanitary standards. Therefore, Russia should be punished. The WTO expects to receive a response from our country as a matter of fact claims until 6 March. In the Ministry of Economic Development of the Russian Federation, the attacks of the EU are considered unfounded. Our country has fully brought its veterinary prohibitions and restrictions in line with the recommendations of the WTO. Rosselkhoznadzor allowed the importation of "live pigs and other raw pork products from all over the EU". The ban remains only for those European countries where outbreaks of African swine fever were recorded. Such prohibitions operate within the EU itself. Hence, Brussels has no reason to talk about Russia's failure to comply with WTO decisions and demand compensation for harm, the MED announced. The Office will defend the interests of our country in the dispute over the pigs, but from the WTO, Russia does not intend to go out at any outcome.

Such a question is not considered, since "WTO membership provides a predictable and transparent legal environment in foreign markets". Third-party experts predict heavy proceedings on the swine issue. Its unusualness lies in the fact that the economic dispute is intertwined with political decisions - sanctions and counter-sentences, said Alexander Knobel, director of the International Trade Research Center of the Russian Academy of Science and Technology. The World Trade Organization is not authorized to settle politically-colored claims. It is not part of her mandate. At the same time, in fact, virtually all the disputes that arise between WTO members usually have a political background, the expert added. Leading analyst of the TeleTrade Group Mark Goichmann points out that the WTO will most likely take the side of the EU. Just last year, the organization decided that Russia's embargo on Russia was not based on the official sanitary standards of the International Office of the Epizootics for the Prevention of African Swine Fever, because the EU did not violate them. It does not bode well for our country. The lawyer of the legal department of HEADS Consulting Anastasia Khudyakova believes that Russia has every opportunity to protect itself. "However, against the backdrop of diplomatic disagreements with the EU and strongly weakened trade relations, it is easy to predict that the decision will most likely not be in Russia's favor," she said.. In courts, the EU will assess the issue of prejudicial attitude of the Russian department in relation to the quality of pork. If it proves to be the political motivation of the Rosselkhoznadzor, the EU will have an opportunity to limit the current trade flow from Russia to the amounts equivalent to the losses of European farmers. In this case, the dispute over the supply of agricultural products will spread to the entire flow of goods from Russia.

"The victory of the EU in this dispute may affect the supply of Russian goods and services not prohibited.

This may be increased import duties on any product, and the leaders of Russian exports - energy carriers, precious metals and stones, ferrous metallurgy, copper, timber, chemicals, equipment, fertilizers and the like will be the first to fall, "Khudyakova predicts.. At the same time, retaliatory actions will hardly help to resolve the situation. It is necessary to wait for the decision of the WTO arbitrators who can hide behind the mandate and stand aside from the politicized dispute.




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