Brussels, 30/11/2012 (Agence Europe) - Led by Australia, the United States and the EU, 23 WTO member countries have urged Ukraine to withdraw its request for revision of customs protection.
In a joint statement presented on 26 November to the WTO committee for trade in goods, 23 delegations - those of Australia, Brazil, Canada, Chile, Colombia, Croatia, Guatemala, Hong Kong, Iceland, Japan, Liechtenstein, Malaysia, Mexico, New Zealand, Norway, Oman, Paraguay, Singapore, South Korea, Switzerland, Turkey, the United States and the European Union - called on Ukraine to withdraw its plans to re-negotiate the tariff commitments it made when it joined in 2008. China, The Dominican Republic, El Salvador, Egypt, Israel, Pakistan, Peru and Uruguay supported the statement.
Ukraine surprised everyone in mid-September when it told its WTO partners of its wish to step up import tariffs on 371 products, in line with GATT Article 28 of 1994, which provides for renegotiation every three years subject to tariff concession.
This Article allows a WTO member country to modify or withdraw a tariff concession provided it maintains “a general level of reciprocity and mutually advantageous concessions not less favourable to trade”. Such reciprocity may be achieved through compensatory adjustment with respect to other products.
Highlighting the risk that such a move might present for the multilateral trading system and the global economy, the 24 delegations rejected Ukraine's request, which, they argue, exceeds the intended scope of Article 28. They also cast doubt on Ukraine's ability to compensate its WTO partners, as the clause provides for. In addition, they are critical of Ukraine's lack of transparency on this matter.
In its defence, Ukraine stated that it was following established procedures in a transparent manner, that its request should not be seen as protectionist and that it would continue negotiations. (EH/transl.fl)