The decision of the Ukrainian government to introduce increased import tariffs for most passenger cars imported into Ukraine creates a new trade barrier in a very sensitive sector and will be extremely damaging to EU car exports, reads a statement issued by the EU Delegation to Ukraine on Tuesday, March 19.
“The EU delegation notes the decision that was published by the Ukrainian government on March 14 to introduce increased import tariffs for most passenger cars imported into Ukraine… We call on Ukraine to reconsider and withdraw this measure as it has no proper legal justification and it has a negative economic impact on EU interests,” reads the statement.
The EU Delegation noted that when this measure was first proposed last summer, the EU expressed its strong concerns and asked Ukraine for a clear factual justification.
“However, further information has not been provided to us and no follow up actions have been taken,” reads the statement.
As reported, on March 14, 2013, the government’s Uriadovy Kurier newspaper published the decision of the Interagency Commission for International Trade approved on April 28, 2012, to introduce 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 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 initiators of the investigation were public joint-stock company Zaporizhia Automobile Plant, private joint-stock company Eurocar and subsidiary Automobile Assembly Plant 2 of Bogdan Motors Automobile Company.
The car manufacturers said that the sphere is in critical condition and the introduction of the import tariffs could help them use their plants at full capacity.
Ukrainian car importers, in turn, opposed the introduction of the tariffs and stated that prices of cars will grow, and sales will drop.
According to lawyers, the introduction of the car import tariffs contradicts the regulations of the World Trade Organization.
Ukrainian Prime Minister Mykola Azarov said that the measure was temporary.
