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Swedish official urges Russia to stop hiking wood tariffs
By Forbes

Swedish Trade Minister Ewa Bjorling urged Moscow Wednesday to stop increasing tariffs on wood exports to avoid delays to Russia joining the World Trade Organization.

Russia increased its tariffs on wood exports in June 2007 and April this year, and has planned a third increase on Jan. 1, 2009. The tariffs have upset Sweden and Finland, home to several of the largest paper and pulp producers in Europe.

The countries claim the tariffs contravene the European Union's agreement with Russia about the conditions for the country's entry into the WTO.

"The latest increase was a considerable setback, but now we make a fresh effort and demand zero-tolerance toward further increases and a clear plan on how the tariffs can be removed. That is a prerequisite to avoid that Russia's entry into the WTO is delayed and complicated," Bjorling said in a statement.

"Together with Finland and the EU Commission we continue working with the issue," Bjorling told local news agency TT at a meeting with paper companies SCA AB, Stora Enso (nyse: SEO - news - people ) Oyj and Smurfit Kappa Group PLC on Wednesday.

She said the wood industry had calculated that 6,000 jobs could be at risk in Sweden if the tariffs are increased as planned, with northern Sweden being hit the hardest.


 
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