On 14 June 2013 on the evening air of Business TV-channel
Cai & Lenard’s Managing Partner Konstantin Pilkov commented Turkish
government’s statements on imposition of duties in response to the import
duties on motor-cars imposed by Ukraine.
The main
concern for Ukraine was that Turkey, as the World Trade Organization (WTO)
member, had stated its right to impose a 23% import duty on Ukrainian walnuts
from 12 July 2013 in response to Ukrainian restriction on import of cars. The
aforesaid decision is taken within the article 8.2 of the WTO Safeguards Agreement
that allows imposition of countervailing duties in case the parties couldn’t
reach an agreement by means of consultations.
“Turkey’s
reaction is significant though it doesn’t create foundation for similar actions
of other states. This is a response to the special duties imposed by Ukraine
and that response measures may be imposed by the WTO’s member within 90 days
after the event constituting a ground for such actions. In this case, Turkey
stated about imposition of duties in time - within 90 days after Ukraine had
started to collect special duties on cars on 14 April.
We should
not expect that Turkey’s actions will provoke other states to take similar
steps. Firstly, they simply won’t comply with 90-days time limit. Besides
Turkey, the statement on establishment of response measures was made by Japan.
However, very little is known if any actions have followed-up the aforesaid
statement. The representatives of the EU and some other states expressed their
concern and left open the possibility of response measures. Maybe this time a
response will not just be embodied in efforts to persuade Ukrainian government
to abolish duties. The reasonableness of imposition of special duties by
Ukraine was placed in question at the very beginning, because there was no import
growth in absolute terms. Moreover, the decision on imposition of duties bases
on summarized results of the investigation conducted more than one year ago.
Besides, it is planned to collect duties within
three years, but the mechanism of step-by-step liberalization of duties, as the
WTO requires, is not provided. All this and other matters may arise before
Ukraine within the framework of settlement procedure in case any WTO member
decides to initiate it” - Konstantin Pilkov commented.
Turkey’s response to the import duties on cars
On 14 June 2013 on the evening air of Business TV-channel Cai & Lenard’s Managing Partner Konstantin Pilkov commented Turkish government’s statements on imposition of duties in response to the import duties on motor-cars imposed by Ukraine.
The main concern for Ukraine was that Turkey, as the World Trade Organization (WTO) member, had stated its right to impose a 23% import duty on Ukrainian walnuts from 12 July 2013 in response to Ukrainian restriction on import of cars. The aforesaid decision is taken within the article 8.2 of the WTO Safeguards Agreement that allows imposition of countervailing duties in case the parties couldn’t reach an agreement by means of consultations.
“Turkey’s reaction is significant though it doesn’t create foundation for similar actions of other states. This is a response to the special duties imposed by Ukraine and that response measures may be imposed by the WTO’s member within 90 days after the event constituting a ground for such actions. In this case, Turkey stated about imposition of duties in time - within 90 days after Ukraine had started to collect special duties on cars on 14 April.
We should not expect that Turkey’s actions will provoke other states to take similar steps. Firstly, they simply won’t comply with 90-days time limit. Besides Turkey, the statement on establishment of response measures was made by Japan. However, very little is known if any actions have followed-up the aforesaid statement. The representatives of the EU and some other states expressed their concern and left open the possibility of response measures. Maybe this time a response will not just be embodied in efforts to persuade Ukrainian government to abolish duties. The reasonableness of imposition of special duties by Ukraine was placed in question at the very beginning, because there was no import growth in absolute terms. Moreover, the decision on imposition of duties bases on summarized results of the investigation conducted more than one year ago.
Besides, it is planned to collect duties within three years, but the mechanism of step-by-step liberalization of duties, as the WTO requires, is not provided. All this and other matters may arise before Ukraine within the framework of settlement procedure in case any WTO member decides to initiate it” - Konstantin Pilkov commented.
Practices: