EU goes to WTO against Russia over car import levy

The EU yesterday launched its first formal trade dispute with Russia at the World Trade Organization, less than a year after Moscow joined the trading club.

According to the EU, Russia was illegally protecting its carmakers with a recycling fee levied on imported cars. It added, it had given up waiting for amendments to the law by Moscow.

"The European Commission has pursued every diplomatic channel for almost one year now to find a solution with our Russian partners on this matter but to no avail. The fee is incompatible with the WTO's most basic rule prohibiting discrimination against and among imports," EU Trade Commissioner Karel De Gucht said in a statement.

According to US trade officials in Washington they were also concerned about the recycling fee that Russia imposed on cars.

To date, Russia had not taken concrete action to address US concerns, Andrea Mead a spokeswoman for the US Trade Representative's office said. She added, the office was continuing to monitor the issue closely to determine its next steps.

The dispute comes after repeated warnings from Brussels about what it saw as Russia's non-complianceand growing anti-WTO sentiment in Russia.