EU threatens trade war with Russia

[rodbarnett]

BRUSSELS - The European Council discussed EU-Russian relations at a meeting in Brussels on Sunday. It concluded that the Partnership and Cooperation Agreement (PCA), signed in 1997, has to be “applied to the EU-25 without precondition or distinction” by May 1, 2004. If Russia refuses to extend the agreement, the EU threatens tough measures and even economic sanctions against Russia.

The expansion of the European Union has already caused enough difficulties and scandals, the Russian Courier newspaper reports. Finally, Russia said it was not going to extend its trade agreements with the European Union to the EU acceding countries (Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, the Slovak Republic and Slovenia). In particular, it means that Russia will apply higher customs tariffs to the goods from these countries, the newspaper notes.

Russia’s position is clear, the Russian Courier says. As an example, it cites EU quotas for Russian grain imports. Russia currently exports grain to Eastern European countries and the Baltic states without any restrictions. However, once these countries join the EU, grain quotas will also be applied to them.

Russia will sustain EUR 150m in annual losses as a result of the EU enlargement, in the estimation of Russian government officials. This is enough to strain diplomatic relations.

http://www.russiajournal.com/news/cnews-article.shtml?nd=42651