If they're not going to get you on the front end, they'll get you on the back end. That's what the European Union is accusing the Russian government of doing with automotive trade restrictions, and the US appears to agree, Reuters reports. The US is joining the EU in a World Trade Organization (WTO) claim that Russia is violating trade agreements by imposing an auto-recycling fees on cars imported into the country.
Russia doesn't have such a fee for Russia-produced vehicles. Therefore, such a fee is no different than the import tax that the Russians were told to remove in order to become part of the WTO.
When it comes to the automotive industry, Russian trade agreements have become all the more relevant as more people buy cars in the country. By the end of the decade, Russian auto sales will increase to 4.4 million units annually, which would make it the world's fifth-largest auto market, and will leapfrog Germany to become Europe's largest, Automotive News reports, citing a report from Boston Consulting Group.
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