Sweden has joined the debate over Russia’s attempts to gain entry to the World Trade Organisation (WTO) by calling for a zero-tolerance approach to its timber export duties.
Speaking ahead of a meeting with the Swedish forest industry, including SCA Timber and the Swedish Forest Industries Association, trade minister Ewa Bjorling said the tariffs were in breach of the EU’s terms with Russia for entering the WTO and would be a major stumbling block for negotiations.
The European Commission has already voiced its concerns that the increase in export duties, which could reach €50/m³ from the start of 2009, will “not make the situation easier” and the Bank of Finland has estimated that as many as 16,000 jobs could be lost in Finland as the tariffs hit its timber industry.
“The latest increase was a considerable setback, but we are now taking a fresh effort and demanding zero tolerance of further increases, as well as a clear plan on how these tariffs can be dismantled,” said Ms Bjorling.
“That is necessary if Russia’s entry into the WTO is not to be delayed or made more difficult.”
Ms Bjorling added Russia would benefit from being exposed to open markets, which Sweden has used to create a strong forest industry.
