On July 30, the World Trade Organization will publish the results of the trade dispute between Ukraine and the Russian Federation regarding Russia’s restriction of Ukrainian exports of railway equipment. The sources of Evropeiskaia pravda informed that Kyiv lost this case in WTO.
Ukraine lost the dispute with Russia in the World Trade Organization regarding the case of Russia’s restrictions of Ukrainian railway equipment export, Evropeiskaia pravda reported on July 30 with reference to the sources in the government.
In May, Ukraine lost the WTO case on ammonium nitrate duties. The World Trade Organization’s arbitration recognized the violations committed by Kyiv during the anti-dumping investigation of ammonium nitrate supplies from the Russian Federation.
Evropeiskaia pravda notes that the decision on ammonium nitrate, despite the loss, did not become a defeat for Ukraine, because “WTO expert panel recognized the right of Kyiv to conduct a new investigation”.
However, the decision of the WTO registered case “Russia – Measures affecting the importation of railway equipment and parts thereof” was worse.
Since 2014 Russian certification authorities have begun to massively suspend the previously issued certificates of compliance of Ukrainian manufacturers, and also limited the issuance of new certificates. Since then, Russia has also refused to recognize the certificates issued to Ukrainian manufacturers of railway equipment in Belarus and Kazakhstan, although it contravenes the Customs Union regulations.
The Ministry of Economic Development and Trade of Ukraine regarded such steps as a contravention of WTO principles, as well as WTO Technical Barriers to Trade Agreement. The government initiated a trade dispute.
However, the WTO expert panel rejected the key demands and arguments of Ukraine, Evropeiskaia pravda notes.
The WTO called illegal the refusal of Russians to recognize the certificates issued by Belarus and Kazakhstan, but experts recognized Russia’s refusal to certify Ukrainian products rightful. The WTO considers that “Russia was justified not to send its certification inspectors to the Ukrainian enterprises as they would have been risking their lives”.
“At the same time, the expert commission not only went beyond its powers, assessing political risks, but also rejected Ukrainian arguments about alternative opportunities for verification without visiting the enterprises. Moreover, which is also important, the expert group refused to see the systemic nature of violations by Russia. It was extremely important, because in the event of Russia’s refusal to remove violations, Ukraine would have the possibility of introducing counter-restrictions to compensate for its losses. Theoretically, the Ukrainian producers have an opportunity to return to the market of the Russian Federation, using Belarus and Kazakhstan certificates, but it is more likely that Russia will continue the policy of non-recognition”, Evropeiskaia pravda notes.
The media stresses that Ukraine has the right to appeal.
On July 30, the World Trade Organization should publish the report on the results of the second trade dispute between Ukraine and the Russia.
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