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EU concerned about Ukraine’s proposal to increase export duties on metal scrap

The EU urges Ukraine to stick an open trade regime.

The EU has taken note with disappointment of the proposed amendments to the 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 the increase of duties on the exports of metal scrap from Ukraine would represent a trade restrictive measure that contradicts the spirit and the letter of the multilateral and bilateral commitments undertaken by Ukraine, reads a statement on the European Union in Ukraine Facebook page.

In particular, under the Deep and Comprehensive Free Trade Area (DCFTA) with the European Union, Ukraine commits not to introduce new customs duties on exports, and it commits to dismantling existing ones over a transitional period.

For this reason, should the law enter into force, it would inevitably raise concerns about Ukraine's international commitments and undermine the confidence of investors as regards the direction of its trade policy.

Furthermore, the EU recalls that, under the Memorandum of Understanding on Macro-Financial Assistance signed with the EU on 22 May 2015, Ukraine has committed to refrain from introducing new trade-restricting or trade-distorting measures, in line with its WTO obligations.

The EU considers that the use of such trade-restrictive measure is not the correct means 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.