Russia to cut timber duty when joins WTO -EU trade chief

01/03/2011 12:00 - 382 Views

Feb 25 (Reuters) - Russia will cut tariffs on timber sales to the European Union by two thirds as soon as it joins the World Trade Organization, which could be by the end of the year, Europe's trade chief said on Friday.

The 153 members of the global trade body were likely to accept Russia's accession by the summer, Trade Commissioner Karel De Gucht told reporters.
"If that comes through they could become a member by the end of this year, which means roughly speaking the duty (on timber) will diminish by two thirds," he said.

""This will be put into practice at the moment of the entry into WTO," he said.
Cuts in timber duties will boost margins for European paper and pulp makers such as UPM (UPM1V.HE), Stora Enso (STERV.HE) and M-Real (MRLBV.HE).
De Gucht met Finnish Foreign Minister Paavo Vayrynen in Helsinki after talks in Brussels on Thursday with Russian ministers.

Russia's export duties on timber are currently set at about 15 percent. Moscow agreed late last year to make cuts to the duties and rail freight fees, prompting the EU to drop its long-standing veto to Russia's WTO membership.
Russia is the largest economy remaining outside the WTO. The WTO estimates membership will boost Russia's GDP 11 percent in the long term.

Fri Feb 25, 2011 5:43am EST
Report by Terhi Kinnunen,
Writing by Juliane von Reppert-Bismarck
Editing by Rex Merrifield
Source: reuters.com