The duty on imports of seeding machines, plows, grain separators and other equipment similar to the types produced in Russia would boost domestic output 35 percent in 2010, Soyuzagromash said in a statement. Soyuzagromash represents Russia's biggest producers of farming equipment.
Russian farmers bought $5.55 billion worth of agricultural equipment last year, about 65 percent of which was imported, the group said. Imports of farming equipment surged as much as sevenfold over the last three years.
Switzerland's Bucher Industries, the world's biggest maker of feed-mixing equipment, would be hurt directly by such a tax, CEO Philip Mosimann said in an interview.
"We are fighting against it," Mosimann said by phone. "Of course, this doesn't comply with the WTO," he said. Russia has been seeking entry to the World Trade Organization for 16 years, but periodic trade disputes, most recently over timber and meat, have stalled its bid.
Mosimann said his company made between 10 million euros ($13 million) and 20 million euros in annual sales in Russia with farming equipment. "It's not dramatic, but you have to nip this in the bud."
He added that the company's hydraulics components unit, which generates 5 million to 10 million euros in sales in Russia, might profit if the duties go through, as local farm-machinery makers need Western technology.
Russia does not tax some of the imported equipment and charges 5 percent of customs value on other types. The country introduced a 15 percent tax on harvesters starting this year to support local producers.
(Bloomberg, MT)
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