New steel trade agreement between Russia & EU

New steel trade agreement between Russia & EU

A new deal between Russia and European Union is signed on July 9, 2002. This new steel trade agreement, replacing a previous one that covered the period of September 1997 – December 2001 will be valid between 2002-2004 allowing more Russian steel products into the EU. EU import quotas are raised by 28% compared to 2001 for Russian imports. They will increase another 2.5% for 2003 and 2.1% for 2004. The agreement however leaves the 15% Russian levy on ferrous exports unresolved yet offers an additional 12% increase in the Russian quotas if Russia agrees to cancel the export duties on steel scrap. The agreement will be reviewed in case Russia joins WTO or EU increases membership within the validity of the agreement. EU states that the products included in this agreement are not affected by the US safeguard measures and consecuently by the EU retaliatory measures. Such an agreement between these parties was expected since in May EU formally recognised Russia's status as a market economy.