Ukrainian Agricultural Market
Draft legislation on export tariffs on grain
On 31 March 2011 the Cabinet of Ministers of Ukraine has submitted to the Parliament of Ukraine the Draft Law of Ukraine On Introduction of Amendments to the Tax Code of Ukraine and Establishment of Export Tariffs on Certain Types of Grain. However, the said submission was made public only in mid-April and thereafter the Draft Law was adopted in the first reading by the Parliament. Presently the Draft Law is pending the second reading.
The Draft Law provides for the introduction of export tariffs with following rates:
(i) 9%, but not less than 17 Euro for 1 ton – for wheat, mixture of wheat and rye (meslin) and emmer wheat:
(ii) 14%, but not less than 23 Euro for 1 ton – for barley;
(iii) 12%, but not less than 20 Euro for 1 ton – for corn.
Additionally, abovementioned goods are exempted from free trade regime between Ukraine and its FTA partners. If the Draft Law is adopted, export tariffs will be operating until 1 January 2012.
The Draft Law provides for the introduction of export tariffs with following rates:
(i) 9%, but not less than 17 Euro for 1 ton – for wheat, mixture of wheat and rye (meslin) and emmer wheat:
(ii) 14%, but not less than 23 Euro for 1 ton – for barley;
(iii) 12%, but not less than 20 Euro for 1 ton – for corn.
Additionally, abovementioned goods are exempted from free trade regime between Ukraine and its FTA partners. If the Draft Law is adopted, export tariffs will be operating until 1 January 2012.
Draft legislation on state support of agriculture
On 7 April 2011 the Parliament of Ukraine adopted the Draft Law of Ukraine On Amendments to the Certain Laws of Ukraine Regarding Provision of the State Support for Development of Agriculture”. The Draft Law provides that the state regulation of the Ukrainian grain market is conducted through the licensing of exports (imports) of grain and grain products, including establishment of quotas (quantitative or other restrictions), which are distributed at auctions. Funds received from selling quotas at auctions will be allocated for state support of Ukrainian agricultural producers. On 28 April 2011the Draft Law was vetoed by the President as inconsistent with Ukraine’s obligations under Article VIII (1) (a) and Article XIII (2) (d) GATT 1994, paragraphs 192 and 255 of the Working Group Report being an integral part of Ukraine’s Protocol of Accession to WTO, as well as with a number of provisions of the Constitution of Ukraine. Moreover, according to the President the Draft Law runs contrary to the Constitution, the Budget Code of Ukraine and the Law of Ukraine On State Budget in part of budget formation. Currently the Draft Law is being prepared for consideration of the Parliament in the light of the President’s critical remarks.
Quotas for corn eliminated
On 27 April 2011 based on recommendations of the Ministry of Agrarian Policy and Food of Ukraine the Cabinet of Ministers of Ukraine has decided to withdraw export quotas for corn. Particularly, the Cabinet of Ministers of Ukraine is reported to adopt amendments to its Resolution No. 938 of 4 October 2010. However, the said amendments are not officially published yet.
Licensing of meat products established
On 11 April 2011 the Cabinet of Ministers of Ukraine introduced import licensing for poultry meat and certain fat products (0207, 0209 00 UCG FEA) by adopting the Resolution No. 420 “On Introduction of Amendments to the Resolution of the Cabinet of Ministers of Ukraine of 22 December 2010 No. 1183 Import licenses are to be issued by the Ministry of Ecology and Natural Resources of Ukraine.
Trade Remedies
Investigations initiated by Ukraine
On 1 April 2011 the Interdepartmental Committee on International Trade initiated antidumping investigation related to import into Ukraine of thermally polished float glass originating from Russia, Bulgaria, Poland, Turkey and Belarus. The relevant notification was published in the official governmental newspaper on 27 April 2011. According to the notification all interested parties may apply for registration at the Ministry of the Economic Development and Trade of Ukraine within 30 days (i.e. up to 27 May 2011),. Under Ukrainian law foreign producers, exporters of the products subject to the investigation, as well as the competent state authorities of the exporting countries may be regarded as the interested parties. Within 60 days (i.e. up to 27 June 2011) the Ministry will consider any written comments submitted and other information on the initiated investigation.
Trade remedies applied to products originating from
Ukraine in foreign markets
Investigations conducted
As of April 2011, no new investigations related to products originating from Ukraine have been initiated. Notably, in 2010 the following investigations were initiated and are currently conducted:
| Anti-dumping investigations | Safeguard investigations | |
| Number | 2 | 3 |
| Country- initiator | Indonesia, India | Kazakhstan, Russia, Moldova |
| Products | Hot-rolled steel, ash of soda | Some types of electric batteries, hard-boiled products, confectionary products |
Remedies applied
As of April 2011 the following remedies are applied to imports of the products originating from Ukraine
| Anti-dumping duties | Safeguard duties | |
| Number | 18 | 2 |
| Country applying remedies | USA, EU, Mexico, Russia, Argentina, Turkey, Thailand, Canada | Russia |
| Products | Ferrosilicon manganese, ammonium nitrate, reinforcement steel, flat hot-rolled steel, rolled rod, flat carbon hot-rolled steel in sheets, ammonium nitrate and complex nitrogen fertilizers containing potassium and phosphorus, jointless pipes, ammonium nitrate and carbamide mixture, ironing boards, welded pipes, machine-building mounting, nylon technical rope, hot-rolled steel in rolls and sheets, rolled carbon steel and heavy-duty low-alloyed steel | Stainless pipes, machine-building mounting (mounting devices) |
Notably, Belorussia has suspended application of the definitive anti-dumping duties to import of hard boilings originating from Ukraine as Ukrainian producers have granted price undertakings.
Reviews
As of April 2011 6 sunset reviews of anti-dumping duties applied by Turkey, Mexico, Argentina, EU are being conducted. The said reviews relate to the following products: cables, cords and ropes made of black metals, reinforcement steel, hot-rolled steel (cutoff and flat in sheets), small and medium-diameter pipes, flat cold-rolled steel, copper wire.
Ukraine and WTO
Doha Round documents released[1]
Documents describing results of the Doha Round of negotiations, which take place within the framework of the WTO, were released and published at the WTO web-cite on 21 April 2011. There are negotiations documents on agriculture, non-agricultural market access, services, rules, environment, intellectual property, development, trade facilitation, dispute settlement and report on TRIPS implementation issues of biodiversity and geographical indications extension. Once Doha Round is concluded, concluded agreements will form part of Ukraine’s commitments within the WTO.
Ukraine vs Moldova / Moldova vs Ukraine
There were no major developments either in Ukraine vs Moldova or in Moldova vs Ukraine dispute settlement procedures.
Just to remind on 17 February 2011 Ukraine has started the dispute settlement procedure in the WTO claiming discriminatory application of the environmental charge in Moldova to goods in PET and Tetra Pak packages imported from Ukraine by requesting official consultations with Moldova. Moldova’s environmental charge concerns mainly beer and juice imported from Ukraine to Moldova. Ukraine claimed violation of Article III of the General Agreement on Tariffs and Trade 1994.
On 2 March 2011 Moldova submitted to the WTO the request for consultations with Ukraine claiming that Ukrainian excise tax is discriminatorily applied to Moldova’s alcoholic drink divine, thus, being inconsistent with WTO rules, particularly with Article III of the GATT 1994.
On 3 March 2011 the European Union submitted the request for joining consultations between Ukraine and Moldova concerning Moldova’s environmental charge. Later on the European Union submitted the request for joining consultations between Ukraine and Moldova concerning Ukraine’s excise duty.
On 2 March 2011 Moldova submitted to the WTO the request for consultations with Ukraine claiming that Ukrainian excise tax is discriminatorily applied to Moldova’s alcoholic drink divine, thus, being inconsistent with WTO rules, particularly with Article III of the GATT 1994.
On 3 March 2011 the European Union submitted the request for joining consultations between Ukraine and Moldova concerning Moldova’s environmental charge. Later on the European Union submitted the request for joining consultations between Ukraine and Moldova concerning Ukraine’s excise duty.
Regional Trade Liberalization
Ukraine – European Union FTA talks
The 16th Round of negotiations between Ukraine and the European Union was held on 4-8 April 2011 in Brussels. As a result, Ukrainian negotiation team informally reported that there is a preliminary agreement in respect of EU quotas for Ukrainian agriculture products (grains, meat) and Ukraine’s tariff liberalization for cheese. The issue with protection of European geographical indications in Ukraine seems to be almost settled. Particularly, there should be a compensatory package for some Ukrainian producers (cognac and champagne producers). Even though there are steps forward in negotiations between Ukraine and the EU, there is no final draft of the agreement and unsettled questions remain.
Trade relations between Ukraine and Customs Union of Russian Federation, Belarus and Kazakhstan
12 April 2011 Mr. Putin, the Prime-minister of the Russian Federation paid a visit to Ukraine to meet with Mr. Azarov, the Prime-minister of Ukraine. The said was preceded by the top level group meeting including the First Vice-prime-minister and the Minister of Economic Development and Trade of Ukraine Mr. Kluyev and his Russian colleague and was aimed among other at discussing future trade relations between both countries. Mr. Putin during those meetings was focused on all the advantages the Customs Union may bring to Ukraine and warned that should Ukraine enter into FTA with the European Union before joining the Customs Union, Russia may resort to protective trade measures. Notwithstanding the numerous statements from both sides prior and after the meeting, the recent statement of the President of Ukraine and the Prime Minister of Ukraine demonstrates that Ukraine – European Union FTA remains Ukraine’s top priority in further regional trade liberalization, while the accession to the Customs Union between Russia, Belarus and Kazakhstan does not seem to be on Ukraine’s agenda for today. However, Ukraine is ready to consider cooperation with the Customs Union in any other possible and mutually beneficial forms.
Personal data protection
On 6 April 2011 the President of Ukraine established the State Service of Ukraine on Personal Data Protection as the central executive power body supervised and coordinated by the Government through the Ministry of Justice of Ukraine. The State Service shall be responsible for all aspects of the implementation of the state policy in the sphere of personal data protection.
The State Service was established according to the Law of Ukraine On Personal Data Protection which became effective on 1 January 2011. The said Law provides for compulsory registration of personal databases, personal data being defined as data or an aggregate of data on a natural person, that is or may be identified. All the personal databases shall be registered and included in the relevant State Personal Databases Register in the order established by Law. The Law prohibits collection, processing and distributing of any personal data through relevant databases unless prior written consent for such actions is given by the respective person. The Law also sets a number of limitations on access to the personal databases by third parties. It is worth mentioning, that the Law does not apply to personal data processed and personal databases created by natural persons for private non-professional use, as well as by journalists and other art professionals.
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