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Ukraine | Brussels, 29 April 2016

EU Delegation in Kiev criticises Ukraine proposal to raise export duties on metal scrap

The EU’s Delegation in Kiev has issued a statement noting its disappointment with the proposed amendments to Article 13 of the Law of Ukraine "On external economic activity", voted on 21 April in the Verkhovna Rada of Ukraine.

The EU considers that Ukraine's increasing duties on its exports of metal scrap would represent a trade restrictive measure contradicting both the spirit and the letter of the multilateral and bilateral commitments the country has undertaken. In particular, under the Deep and Comprehensive Free Trade Area (DCFTA) with the European Union, Ukraine has committed itself not to introduce new customs duties on exports and to dismantling existing ones over a transitional period.

Should the law enter into force, it would, therefore, inevitably raise concerns about Ukraine's international commitments and undermine investors' confidence regarding the direction of its trade policy. In its statement, the EU Delegation recalls that, under the Memorandum of Understanding on Macro-Financial Assistance signed with the EU on 22 May 2015, Ukraine has committed itself to refrain from introducing new trade-restricting or trade-distorting measures, in line with its WTO obligations. The EU considers does not consider such trade-restrictive measures as the right way 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.
 

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