Ukraine is ready to continue discussions with Japan on its claims regarding the special safeguard measures imposed in 2013 on imports of passenger cars, although if a compromise is not found, the country plans to continue the application of the special duties until they expire, Ukrainian commissioner for European integration Valeriy Piatnytsky said at a briefing in Kyiv on Wednesday, Aug. 6.
“On one hand, Japan joined sanctions against Russia and supports
Ukraine, and on the other hand there is a case [circumstances]. We have
very tight contacts and we’re trying to settle the issue. Unfortunately,
Japan does not show the positive will in the context, and this pains us
to the certain extent. We proposed a way of settling the issue, which
would have satisfied Japan by 100 percent, I think. In this case, Japanese
should think if they support us or not,” he said.
Piatnytsky said that Japan offers several serious projects to Ukraine
today, and in particular, on the modernization of the Bortnychi
aeration station and optimization of coal consumption in electricity
generation.
“Against this background, this [special duties on cars] is so minor
issue that I think that we’ll work further not to continue the
discussion. However, we could continue – we have the relevant resources,
professional training and of the two sides press own arguments, our
measures will be in effect until they expire, and finally a certain
decision of the Dispute Settlement Body (DSB) on the appropriateness of
the measures will be issued. If the goal is battle of law, we could take
part in it,” Piatnytsky said.
As reported, on June 20, 2014, Director-General of the World Trade
Organization (WTO) established a panel pursuant to the request of Japan
that filed a claim against Ukraine due to limitations levied in spring
2013 on the import of passenger cars.
WTO said that Australia, the European Union, India, Korea, the
Russian Federation, Turkey and the United States have reserved their
rights to participate in the panel proceedings as third parties.
This is a first panel for Ukraine after the country joined WTO in 2008.
Japan late in October 2013 initiated consultations with Ukraine
regarded limitations levied in spring 2013 on the import of passenger
cars.
The government of Japan says it considers that the measures were
imposed inconsistently with the provisions of the General Agreement on
Tariffs and Trade (GATT) and the WTO Safeguards Agreement in terms of
defects in the approval of the requirements for imposing the measures
(increased imports, serious injury to the domestic industry, causal
links, etc.), and defects in procedural requirements for imposing the
measures.
Under WTO rules, dispute participants have 60 days to settle the
issue in a consultation regime. If the consultations fail, the
initiators have the right to demand that the DSB form an arbitrators’
panel (three or five members) within 45 days, which gives the sides six
months to draw up a report, and another three weeks to the WTO members.
If the appeal is not submitted, the DSB makes a decision within 60 days,
and in this case it takes one year to finish the procedure, while the
appeals procedure extends it by around three months.
Additional special duties on imports of new passenger cars with
petrol engines of 1,000-1,500 cubic meters set at 6.46 percent and 1,500-2,200
cubic meters at 12.95 percent, regardless of the country of origin and export,
came into effect in Ukraine on April 13, 2013.
On April 14, 2014 Ukraine cut the duties by one third and from April
14, 2015 they will be decreased by three times compared to the initial
figure.
