EU challenges Russia in the WTO over pork import ban
9 Apr 2014 02:44 PM
The EU has launched a case in the World Trade
Organisation (WTO) against the Russian ban on imports of pigs, fresh pork and
certain pig products from the EU.
Russia closed its market to the EU – cutting off
almost 25% of all EU exports – at the end of January 2014. It based its
decision on four isolated cases of African swine fever (ASF) detected in wild
boar at the Lithuanian and Polish borders with Belarus.
This trade ban has exposed the EU farming sector to
significant losses. Bilateral discussions with Moscow have not brought any
results thus far. Given that there seems to be no solution forthcoming, the EU
has decided to resort to the WTO's dispute settlement procedures by
requesting formal consultations with Russia.
“Russia's blanket ban on European pork is
clearly disproportionate and goes against WTO rules. This was a very minor case
of a few infected wild boars at the borders with Belarus which was immediately
contained by the relevant European authorities. After weeks of talks with our
Russian counterparts to try to resolve this issue, we see absolutely no
progress. Europe will defend its pork producers and in this respect has no
choice anymore but to pursue this case at the WTO." said EU
Trade Commissioner Karel De Gucht.
EU
Health Commissioner Tonio Borg said: "Despite intensive
negotiations, our Russian partners continue to reject our regionalisation
proposal which would allow all pig exports, except from the affected area. The
Commission has put in place a series of control measures to contain the ASF
virus – which most probably comes from Russia itself - , which comply
with WTO principles. However, Russia continues to apply a blanket ban on EU
pork exports. This disproportionate ban is having a major financial impact on
our European pig industry and cannot go
unchallenged."
Upon joining the WTO in 2012, Russia committed to make
sure that its measures protecting animal life and health are based on science,
not more trade restrictive than necessary and applied without discrimination to
its different partners and domestic producers.
However, Russia accepts for instance imports from
Belarus and, until recently, Ukraine, despite notified cases of African swine
fever in these countries. Also, despite the numerous outbreaks of the disease
that have occurred on its own territory, Russia did not close its entire market
to all domestic products. Therefore, by refusing imports from EU regions
unaffected by the disease, Russia would seem to be applying double standards,
treating EU products differently from other trading partners and from those
produced domestically.
In
requesting consultations, the EU formally initiates a WTO dispute.
Consultations give the EU and Russia the opportunity to discuss the matter and
to find a satisfactory solution without resorting to litigation. If
consultations do not reach a satisfactory solution within 60 days, the EU may
request the WTO to set up a panel to rule on the legality of Russia’s
measures.
Background
Trade facts and figures
In
2013, the value of EU pork exports to Russia reached €1.4 billion, which
was around 25% of the whole EU exports. The ban has a severe impact on the
EU pig industry with a decrease of price and oversupply of pork on the EU
market. Russia is the EU's third largest trading partner and the EU is
Russia's biggest export market. In 2013, the EU exported €123 billion
of goods to Russia and imported €232 billion worth. While Russian exports
to the EU are mainly raw materials (80%), EU exports to Russia are mostly
vehicles, medicines, machinery and transport equipment, but also agricultural
products.
African swine fever
The
virus of African swine fever is a lethal, infectious disease of pigs which is
harmless to humans or other animals. The virus strain found in those four wild
boars matches with the virus strain prevailing in Russia. The Russian import
ban covering unaffected areas in the EU is in stark contrast to the Russian
domestic situation. Since 2007, Russia notified around 600 cases of African
swine fever in wild boar and close to 400 outbreaks in domestic holdings.
Against this backdrop, there is little doubt that the disease spread from
Russia to Belarus and from Belarus to the EU. The EU calls upon Russia to
urgently increase its domestic efforts to eradicate and control ASF and lift
its unjustified trade ban against unaffected areas in the EU.
More information:
WTO
dispute settlement:
http://ec.europa.eu/trade/policy/accessing-markets/dispute-settlement/
Relations with Russia:
http://ec.europa.eu/trade/policy/countries-and-regions/countries/russia/<
/a>
EU
pork market:
http://ec.europa.eu/agriculture/pigmeat/index_en.htm
EU
control measures for African swine fever:
http://ec.europa.eu/food/animal/diseases/controlmeasures/asf_en.htm
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