Commissioner Mandelson: EU cannot pressure Russia into removing wood tariffs

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The European Commission says that it is pointless for Finland to expect Russia to cancel the export tariffs that are being placed on raw timber.
     "We are not asking Russia to cancel the export tariffs. We are asking that they be implemented in a manner that does not hurt European industry", said the European Commissioner for External Trade, Peter Mandelson in Moscow on Friday.
      The export tariffs were the most important topic when Mandelson met with Russian Finance Minister Alexei Kudrin and Minister of Trade Elvira Nabiullina.
      Mandelson said that good progress had been made in the discussions over possible solutions. He added that the EU and the Russian government will consider the matter further, and that they would meet again in three or four weeks.
     The main purpose of Mandelson's visit to Moscow is to pave the way for Russian membership in the World Trade Organisation, which could happen later this year.
     Mandelson said that it is "quite honestly ridiculous" that an economic area the size of Russia is not in the WTO.
     
Previously both Russia and the EU had tied the possible easing of the wood tariffs to Russia's WTO membership.
     At his Friday press conference Mandelson did not directly answer the question of whether or not there would be changes forthcoming to the wood tariffs before Russia's WTO membership.
     Mandelson noted that the EU is not in a position to demand that Russia refrain from enacting procedures that it needs. "We can discuss how these procedures would be implemented in such a way that they would not hurt European industry. I believe that both sides understand this", Mandelson said.
     According to Mandelson, Russia does not want to use the export tariffs to hurt European industry. He repeated what the Russian sides in the negotiations have said in the export tariff matter from the very beginning.
     Mandelson observed that wood tariffs also had a bearing on relations between Russia and China.
     
Finnish Prime Minister Matti Vanhanen (Centre) and Foreign Trade Minister Paavo Väyrynen (Centre) have also said that they have negotiated on the wood tariffs with the Russian ministers.
     Väyrynen said in November that Finland wanted Russia to grant Finland quotas for export-tariff-free imports of Russian coniferous wood, and that exports of birch should be freed of all tariffs.
     Mandelson did not want to comment on Finland's specific demands.
     "Both sides need to be reasonable. Russia's needs nave to be considered in such a way that they do not have harmful consequences to the needs of Europeans, including the Finns. I will continue to talk until we reach a solution", Mandelson said.
     He added that he is pleased with the support that he got from Finnish ministers in the discussions. He said that the talks are being held in close cooperation with the Finns.
     
"They know exactly what is happening in our negotiations", Mandelson said.
     He also pointed out that the negotiations need to take place between Russia and the EU - that is, that Finland cannot negotiate a separate agreement with Russia on the wood tariff matter.
     "But naturally, the special interest of Finnish industry in the matter is one of my concerns", Mandelson said.
     The Trade Commissioner also noted that he appreciates his Russian negotiation partner.
     "I must express my respect both for the tenacity and the professionalism that my negotiation partners have shown in Moscow. But they must also understand the EU's interests, and I believe that they do understand them."


Previously in HS International Edition:
  Putin defends wood tariffs during last press conference of presidency (15.2.2008)
  EU Commission: No speedy solution in sight in dispute over Russia´s timber export tariffs (25.10.2007)
  President Halonen says all possible steps taken over timber tariff issue (4.6.2007)
  Väyrynen demands discussion of wood tariff dispute at EU-Russia Summit (18.5.2007)

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