U.S. to Join EU Trade Case About Russia’s Auto Fees

Trade Representative Michael Froman says the U.S. will join a complaint the European Union filed earlier this month with the World Trade Organization that challenges Russian fees on imported vehicles.

European and U.S. officials complain that Russia is illegally protecting its domestic auto operations from foreign competition by levying a recycling fee only on imported vehicles. The money is meant to cover the future cost of scrapping or recycling.

Russia reduced its tariffs on auto imports when it joined the WTO in late August 2012. But it introduced the recycling fee nine days later.

Those fees range from €420 to €2,700 ($550 to $3,500) per passenger vehicle. The charges, which also are imposed on buses and commercial vehicles, reach as high as €147,700 for a mining truck.

EU officials say the policy is "severely hampering" the region's trade in a key sector. If its complaint isn't resolved within 60 days, the European Commission could request the formation of a WTO panel to rule on the legality of the fee.

Russia's parliament is considering legislation that would apply the recycling fee to autos produced domestically.