Väyrynen remains hopeful on partial solution to timber tariffs dispute

Minister of Foreign Trade and Development Paavo Väyrynen (Centre) remains hopeful that the dispute over timber tariffs between Russia and the European Union can be brought to a partial conclusion in the weeks ahead.
      In talks last week with Russia’s Minister of Economic Development, Elvira Nabiullina, Finland put forward a proposal that would allow the removal of customs tariffs on the import of smaller birch logs for use in the processing of wood pulp.
     
Such a proposal might go through in Russia, since it does not of itself threaten the country's own wood processing industry.
      Väyrynen, who was attending an EU ministerial meeting in Brussels on Monday, said that he was hopeful agreement could be reached, but warned that Russia could be unpredictable.
      If the Russian side does accept the Finnish plan, it would require the application of the new rules to the timber trade between Russia and other EU member-states. In practice this would mean Sweden.
     
Officially, the discussions on timber tariffs are being conducted between the EU and Russia.
      Within the Union, the responsibility rests on the shoulders of the Trade Commissioner Peter Mandelson.
      Negotiations have gone ahead only slowly, however, since they are tied to the bigger issue of Russian membership in the World Trade Organization, and hence Finland has had to go it alone in bilateral negotiations with the Russian side.
     
Väyrynen criticised the Enterprise and Industry Commissioner Günther Verheugen on Monday for what he saw as siding with the Russians over the tariff issue.
      The minister does not believe that subject is part of Verheugen's domain, and argues that he does not have a proper grasp of the details.
      Verheugen, who is to leave his position next year, last week came out against Sweden and Finland over the timber tariffs case in an interview with a Russian newspaper.
     
The tariff on raw timber from Russia is currently set at EUR 15 a cubic metre, but plans call for it to rise to EUR 50 from the beginning of 2009.
      The Finnish wood processing industry has already announced that such a step would require serious contingency plans, involving a possible end to imports of raw timber from Russia and in effect spelling mill closures and sustantial redundancies.
      Roughly one-fifth of the wood used by Finnish pulp and paper manufacturers is imported from Russia.
     
Väyrynen notes that Russia has so much wood at its disposal that there will be enough both for sale and for processing within the country.
      "Naturally we accept that there should be a greater level of wood refining within Russia itself, but the question is whether imposing tariffs is the correct way of going about this", said Väyrynen, and he threw in the jibe that a good many people in Europe seemed unaware that forests are a renewable resource, and that timber resources can actually grow.


Previously in HS International Edition:
  Putin defends wood tariffs during last press conference of presidency (15.2.2008)
  UPM: Russian wood tariffs could reduce paper production this year (6.2.2008)
  Väyrynen makes proposals to Russia on wood export tariff issue (23.11.2007)
  Väyrynen expects Russia to change position on wood tariffs (20.5.2008)
  Commissioner Mandelson: EU cannot pressure Russia into removing wood tariffs (18.2.2008)
  Väyrynen demands discussion of wood tariff dispute at EU-Russia Summit (18.5.2007)
  Russian export tariff could end timber imports into Finland (12.2.2007)