Brussels, 25/09/2012 (Agence Europe) - Kiev plans an increase in import duties for 350 products, but promises not to violate its WTO commitments.
Ukraine surprised everyone in mid-September by informally announcing to its WTO partners that it wanted to increase its import duties on around 350 products in a move in line with Article 28 of the GATT, which provides for the conditional renegotiation of tariff concessions every three years. The increase planned by Kiev would affect an import volume of more than €3.5 billion, including EU exports for nearly €2 billion. The products concerned would include cars, lorries and agricultural machines, meat, flowers, fruit, vegetables and washing machines.
Having joined the WTO in May 2008, Ukraine saw its trade deficit plunge more than 50% in 2011, to reach $10.8 billion. Kiev then threatened to block its imports of cars to improve its terms of exchange.
Speaking through Karel De Gucht - who welcomed the Ukrainian deputy prime minister, Valeriy Khoroshkovsky, to Brussels on 24 September - the EU has called for the greatest caution, warning of the risk such a move could have on world trade and the free-trade agreement concluded at the end of 2011 as part of the wider association agreement. This agreement was initialled in March 2012 but has not yet been signed because of disagreements on the political level.
Khoroshkovsky promised on Monday that Ukraine was working “in compliance with the laws of the WTO, and we are not going in any way to violate the rules laid down by the organisation”. “We were asked how we intend to proceed in the future, because during the crisis any protectionist measure is even more alarming. As of today, we haven't violated any regulation, which was confirmed by Commissioner De Gucht, and in this sense there can be no direct claims”, Khoroshkovsky said to the press, relayed by the Ukrainian daily Kyiv Post on Tuesday 25 September.
Like the EU and the United States, other member countries of the WTO have reported their concerns to Geneva. The member countries have 90 days to examine Ukraine's request and submit their views. (EH/transl.fl)