Steel quota problem between Russia and EU dissolved
Steel quota problem between
Russia and EU has recently come to an end at the meeting held on April 27, 2004 in
Luxembourg.
As previously reported by SteelOrbis,
Russia was worried about EU expansion, as the amount of steel products that
Russia exports to Eastern European countries will be included into the quota EU allocated for
Russia following the expansion of EU. Thus,
Russia demanded EU to enlarge the steel quota allocated to
Russia within the expansion that will take place on May 1, 2004. The amount
Russia demanded was 450'000-500'000 tons.
In line with the agreement signed between
Russia and EU in July 2002,
Russia could export 1.38 million tons of steel to EU in 2004. The amount of steel that
Russia exports to Eastern European countries is around 500'000 tons.
As per the latest decision taken at the meeting held in
Luxembourg on April 27, 2004, the quota allocated for
Russia is increased by 438'000 tons. Moreover, it is stated that, 2005 quota will not be lower than 2004 quota allocated for
Russia.
It is also stated at the meeting that expansion of EU will improve
Russia-EU relations in political, economic and cultural fields depending on the geographical proximity of the two.
Moreover, following the expansion, tariffs on Russian goods will be reduced from 9% to 4% and the protectionism measures applied by the prospective members of EU on imports from third countries, including
Russia will be invalid as of May 1, 2004.