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Tensions With EU Mark Russia’s Two Years in WTO

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It has been two years since Russia joined the World Trade Organization (WTO), with the second year having been marked by a tense cooling of relations with the West as both Russia and the European Union strive to defend their interests in the organization.

MOSCOW, August 22 (RIA Novosti) - It has been two years since Russia joined the World Trade Organization (WTO), with the second year having been marked by a tense cooling of relations with the West as both Russia and the European Union strive to defend their interests in the organization.

In August, Russia introduced a one-year ban on a wide range of agricultural and food imports from the United States, the European Union, Australia, Canada and Norway. The move came in response to a new wave of economic sanctions against Moscow that limited access to Western capital markets for a number of Russian banks.

Poland was particularly hard-hit by the ban, which cut off about half of all Polish food exports. The country asked the European Commission to send a formal complaint to the WTO over Russia’s actions.

The European Union is now "actively preparing a procedure for a possible launching of a request for consultations under the WTO dispute settlement procedure,” according European Trade Commissioner Karel de Gucht’s spokeswoman.

The WTO could fine Russia for violating regulations on open markets if it rules in favor of a Commission complaint.

Russia has stressed that its food bans are in line with the country’s WTO obligations. Kremlin spokesman Dmitry Peskov said Moscow has a wide range of potential responses to Western sanctions within the framework of the WTO that can be used by any of its members.

Russia joined the WTO in 2012, but despite hopes of better trade relations following Russia's accession to the organization, the European Union has complained of numerous Russian violations.

In July 2013 the European Union filed a case against Russia over "recycling fees" that were charged for imported vehicles. Russia has since adopted a new system of fees, but the European Union has not withdrawn its complaint.

In April, the European Union opened another case against Russia over a ban on European pork imports.

Meanwhile Russia has filed two cases against the European Union with the WTO. In May, it filed a complaint saying that the bloc was putting Russian steel and fertilizer companies at a disadvantage through unfair anti-dumping tariffs.

In December, Russia said the European Union was discriminating against gas and electricity providers from outside the bloc, violating international agreements.

Meanwhile Russian fishing companies have complained to the Economic Development Ministry about limited access to the fish markets of several countries. If the issue is not resolved outside of court, Russia could file a case with the WTO.

A request for WTO consultations regarding a complaint is the first step in a complex settlement process that can last several years. The consultations, which allow the parties involved to seek a settlement without resorting to litigation, must take place within 60 days from the date of the application. If they fail, the party filing the complaint can ask the WTO’s Dispute Settlement Body to review the dispute.

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