The European Union (EU) considers that the increase of duties on the exports of metal scrap from Ukraine would represent a restrictive trade measure, the delegation of the EU to Ukraine has said.
The EU has taken note with disappointment on the proposed amendments to Article 13 of the Law of Ukraine “On external economic activity” voted on April 21 in the Verkhovna Rada.
“The EU considers that the increase of duties on the exports of metal scrap from Ukraine would represent a trade restrictive measure that contradicts the spirit and the letter of the multilateral and bilateral commitments undertaken by Ukraine”, the delegation said.
“In particular, under the Deep and Comprehensive Free Trade Area (DCFTA) with the European Union, Ukraine commits not to introduce new customs duties on exports, and it commits to dismantling existing ones over a transitional period”, the delegation said.
“Furthermore, the EU recalls that, under the Memorandum of Understanding on Macro-Financial Assistance signed with the EU on 22 May 2015, Ukraine has committed to refrain from introducing new trade-restricting or trade-distorting measures, in line with its WTO obligations”, reads the report.
“For this reason, should the law enter into force, it would inevitably raise concerns about Ukraine’s international commitments and undermine the confidence of investors as regards the direction of its trade policy”, the delegation said.
“The EU considers that the use of such trade-restrictive measure is not the correct means to address the problems of competitiveness in the Ukrainian steel-making sector. The EU urges Ukraine to maintain its steady commitment to an open trade regime”, the delegation said. (Interfax.com.ua/Ukrainian metal)