EU makers want improved access to Russia by having a recycling levy canceled. Photo: The Moscow Times

The European Union (EU) on Tuesday asked the World Trade Organization (WTO) to intervene in a trade dispute with Russia over a car levy. This is the first trade dispute between the EU and Moscow since Russia joined the WTO last August. The EU submitted this issue to the WTO, worrying that Russia would apply “recycling costs” to all imported cars, new or secondhand, which would push their retail price higher. According to Karel de Gucht, European Commissioner for Trade, the recycle fee could hinder regional trade, which is a mainstay of the European economy. The EU said Russia’s application of recycling costs is “arbitrary and unreasonable”. The WTO will arbitrate the case to try to find a solution that avoids a lawsuit. If the arbitration does not succeed, within 60 days, the EU can ask the WTO to set up a committee to consider the recycling costs’ legitimacy.