INTERVIEW: Russia to ask WTO for arbitration on rolled steel duties

MOSCOW, Aug 22 (PRIME) -- Russia is preparing to ask the World Trade Organization (WTO) to set up an arbiter panel on anti-dumping duties on cold-rolled steel, slapped by the European Commission, which oversees the E.U. trade policy, Maxim Medvedkov, head of the trade negotiations department of the Economic Development Ministry said on Tuesday.

The E.U. introduced the duty in February 2016 and in August 2016 it extended it for five years revising the rates to 34% for Severstal, 18.7% for Magnitogorsk Iron and Steel Works (MMK) and 36.1% for Novolipetsk Steel (NLMK) and other metals producers. In January 2017, Russia first submitted a claim against the duty to the WTO.

In November 2016, Severstal and NLMK also sent suits to the E.U.’s General Court challenging decision of the European Commission.

The reason for a new claim is multiple violations of WTO rules in the course of the European Commission’s investigation, the Economic Development Ministry said earlier.

“We held consultations within WTO in early June and now we are preparing a request to establish an arbiter panel,” Medvedkov told PRIME in an interview.

The official also said that there are very few chances for a pre-trial settlement of Russia’s claim over Ukraine’s sanctions imposed against Russian goods, services and individuals, and transit across Ukraine in 2014.

In May, Russia filed a request to the WTO seeking to hold consultations on Kiev’s restrictions, bans and special requirements. According to the WTO rules, consultations to search for an amicable settlement should be held within two months.

Medvedkov said that Russia is waiting for a decision of the WTO arbiter panel on the third energy package in autumn.

The third energy package bars fuel owners from possession of main pipelines in Europe. Russian gas giant Gazprom had to cancel its South Stream gas pipeline project due to these restrictions. Russia sent a claim to the WTO against the law in 2014. The WTO arbiter panel to consider the case was organized in March 2016.

The official called new U.S. anti-Russian sanctions “cynical protectionism.”

“The sanctions introduced against us strongly resemble protectionism. The latest package of U.S. sanctions directly envisages limitation of foreign participation in building export pipelines. Considering the U.S. intention to raise gas supplies to Europe -- what else it is if not protectionism?” he said.

Medvedkov is sure that “sanctions are a natural political measure” while the WTO has always been presenting itself as a politics-free platform and needs to remain this way.

Earlier in August, U.S. President Donald Trump signed a bill introducing additional sanctions against Russia among several other states. The bill prohibits companies to invest more than U.S. $1 million in a single payment or more than $5 million during the course of a year in construction of Russian export pipelines, as well as provision of goods, services, technologies and information support for the construction.

Medvedkov said that a December WTO ministerial conference in Argentina will determine the way the global trading system will evolve, a difficult task as WTO members have split into two opposite groups.

“Some states insist that negotiations started 15 years ago (the so-called Doha Round) should be finished first and intend to block any new talks. The U.S. has switched to the protectionists group, but their position is not fully clear,” he said.

‘In October and November the work will finish, but final clarity about the results of the ministerial conference is likely to appear in Argentina.”

The Doha Round launched in 2001 is the latest round of trade negotiations among the WTO membership covering about 20 areas of trade. Its aim is to achieve a major reform of the international trading system through the introduction of lower trade barriers and revised trade rules. Emerging economies, including China and India, want to continue the Doha Round talks while developed economies, including the U.S. and the E.U., advocate a new WTO format.

End