You're reading: Azarov: Safeguards measures of WTO members towards Ukraine not to bring negative consequences

Kyiv, June 15 (Interfax-Ukraine) – The decision of some member states of the World Trade Organization (WTO), particularly, Turkey and Japan, on taking response measures to the increase of imports duties on cars by Ukraine will not bring negative consequences for Ukraine’s trade and economic relations on foreign markets, Ukrainian Prime Minister Mykola Azarov has said.

 “We haven’t violated any clause, so there are no grounds to apply any sanctions to us, especially safeguards sanctions – they do not exist in the nature. One can discuss this, but if we did everything within the framework of the regulations, the question is what is subject of the dispute?” Azarov said at a press conference on Friday.

The premier also reminded that when Ukraine decided to increase imports duties on cars, the European Commission asked to present explanations and Ukraine presented them.

“The issue is settled. We have the right to do so and we’ll do this in the future. We have the right to take the said measures in the conditions when we have problems with the balance of foreign trade,” Azarov said.

“As for the possible consequences, I don’t think that there will be any serious consequences for our economy,” he said.

As reported, Chinese Ambassador to Ukraine Zhang Xiyun said that the member states of the WTO should work on the international market according to the rules of this organization and without artificial restrictions.

Under the rules of the World Trade Organization (WTO), Turkey has reserved the right to impose a 23% import duty on Ukrainian walnuts from July 12 of this year in response to the restriction on import of cars imposed by Ukraine.

In a notice sent to members of the WTO on June 12, Ankara said that it would take such a step under Article 8.2 of the Safeguards Agreement of the organization, which allows the introduction of countervailing duties if the parties fail to reach agreement. According to Bloomberg BNA, this is the first case of the application of this article in the history of the WTO.

The country plans to introduce the fee from July 12, 2013. Turkey said that Ukrainian walnuts worth $26.7 million were imported in 2012, which brings the total duties to $6.1 million, which fully corresponds to the amount of duties on imports of Turkish cars, which last year totaled $55 million.

Japan on June 12 also notified the WTO of its intention to apply retaliatory sanctions against Ukraine for violation of the WTO requirement to consult with interested countries before introducing safeguard measures, the government’s commissioner Valeriy Piatnytsky acknowledged that this was also “a bad signal.”

According to Bloomberg BNA, Japan demands Ukraine should immediate lift its duties on imports of passenger cars.

From April 14, 2013, Ukraine introduced special duties on imports of new passengers cars with engines from 1,000 to 1,500 cubic centimeters at a rate of 6.46%, and on cars with engines from 1,500 to 2,200 cubic centimeters at a rate of 12.95%, irrespective of the country of origin and export.

The EU and a number of countries, including the United States and South Korea expressed their concern over this step.