International Trade News. November-December 2012

1. HOT ISSUE

   Ukraine urged to withdraw request for renegotiation of tariff commitments1

   On 26 November 2012 at the WTO Council for Trade in Goods meeting 23 delegations (including Brazil, Canada, the European Union, Japan, Korea, Switzerland, Turkey, the United States, China) issued a joint statement urging Ukraine to withdraw its notification to re-negotiate its tariffs on a large number of products in the interest of the multilateral trading system and the global economy. They said that Ukraine's notification covers 371 tariff lines, and that this goes beyond the intended scope of the WTO provision on tariff negotiations (Article XXVIII of GATT 1994). Ukraine stated that it was following the established procedures in a transparent manner and that its notification is normal practice and should not be seen as protectionist. On 11 December 2012 on the WTO General Council the delegations once again expressed concerns about Ukraine's notification to modify its schedule of tariff concessions under Art. XXVIII of GATT 19942. On 12 December 2012, the last day of filing the applications for negotiations with Ukraine on modification of tariff commitments, another 15 countries have submitted the applications (including Australia, Croatia, Mexico, Peru, Switzerland, Turkey, Uruguay). The list of countries that earlier reserved their right to negotiate with Ukraine include Brazil, Egypt, the EU, India and others.

2. Ukraine and WTO

   Mission of Ukraine to the WTO3

   On 7 December 2012 the Prime Minister of Ukraine held a meeting on the revision of tariff rates under the WTO agreements. One of adopted decisions obliges the Ministry for Economic Development and Trade of Ukraine, the Ministry of Finance of Ukraine and the Ministry of Foreign Affairs of Ukraine to submit in seven days the proposals on the establishment of the Mission of Ukraine to the WTO. Just to remind: On 17 June 2008 the President of Ukraine issued a Decree "On Measures Related to Ukraine's Accession to the World Trade Organization" № 557/2008, which included the obligation of the Cabinet of Ministers of Ukraine to submit the proposals regarding the opening of the Permanent Mission of Ukraine to the WTO. The Mission of Ukraine to the WTO has not yet been created.

   Dispute with Australia4

   At the meeting of the WTO Dispute Settlement Body on 19 November 2012, Australia rejected the first request of Honduras to establish the panel in dispute on Australia's measures concerning trademarks, geographical indications and other plain packaging requirements applicable to tobacco products and packaging. Ukraine shared Honduras' concerns regarding the effect of Australia's measures. New Zealand, Norway and Uruguay supported Australia's measure and noted the sovereign right of the WTO members to regulate and protect public health.

   Ukraine will not ban wheat exports5

   On 14 November 2012 on the WTO Agriculture Committee meeting the member-states were concerned about the possibility that Ukraine might restrict wheat exports because media reports said it might do so from 15 November 2012. Concerns or questions came from Australia, the EU, Japan, the US and the Republic of Korea. Ukraine said that it will follow the WTO provisions. In addition, the Minister of Agriculture and Food of Ukraine, Mr. Mykola Prysyazhnyuk, stated on the official site of the Ministry stated that "our aim is not to restrict export, but to preserve external markets"6 .

   WTO approves Tajikistan's membership7

   The General Council 10 December 2012 paved the way for Tajikistan's membership of the WTO by approving its accession package. Tajikistan would have to ratify the deal by 7 June 2013 and would become a WTO member 30 days after the ratification.

3. REGIONAL TRADE LIBERALIZATION

   FTA with Montenegro

   On 16 November 2012 the Law of Ukraine "On Ratification of the Free Trade Agreement between the Government of Ukraine and the Government of Montenegro" No.5445-VI entered into force. FTA will enter into force on the first day of the second month after the receiving by diplomatic channels the last written notice of a Party of the completion of all internal procedures necessary for the entry into...