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EU Asks WTO to Rule on Russian Recycling Fee

The European Union has joined Japan in petitioning the World Trade Organization to decide the legality of Russia's "recycling" fee on imported cars.
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The European Union has joined Japan in petitioning the World Trade Organization to decide the legality of Russia's "recycling" fee on imported cars.

Russia defends the tax on environmental grounds. But the EU argues that the fees €420 or more per vehicle amount to an illegal tariff on foreign-made vehicles because they are not also levied on domestically produced cars. Japan filed a similar complaint with the WTO in July.

Reuters estimates that shipments of European-made vehicles to Russia total about €10 billion annually.

The EU says it asked the WTO to step in after efforts to negotiate with Russia failed. Russia, which joined the trade organization a year ago, faces eventual trade sanctions if the WTO agrees with the EU's complaint.

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