Russia To Protect Domestic Car Makers With Higher Import Duty.

World News - "Russia will gradually raise the import taxes for the foreign-made cars, Russian Prime Minister Vladimir Putin said Monday. Putin noted this would be done to stimulate foreign companies to build their production facilities in Russia.

Putin explained that first the import duties would be raised for used cars and later for the new cars, since Russian customers needed foreign-made cars yet. He said foreign companies should realize it clearly that Russia would protect its industry with all available tools. ..." [Agence France Presse/Factiva]

Xinhua adds that "...Still, Putin soothed that the government was not going to undermine foreign car business in Russia and encouraged them to build their production facilities in the country. 'We want you to pass us your technologies, experience, raise the manpower productivity, technical skills of our workers,' Putin was quoted by RBC news agency as saying, adding that he was against making Russia a trash bin for run-down equipment. ..." [Xinhua/Factiva]

FT notes that "Russia's bid to join the World Trade Organization (WTO) received a blow yesterday after Putin announced plans to raise car tariffs to encourage foreign motor companies to invest in the country. ...Only a few obstacles remain to Russia's bid to join the WTO, but a commitment to raise duties on car imports could reverse years of progress.

Putin's attitude towards WTO membership is difficult to read. In June last year, he derailed membership talks for a year by insisting that Russia join the WTO together with Kazakhstan and Belarus, its customs union partners. Last spring, that position was overturned and Russia resumed negotiating." [The Financial Times]