The European Union believes that the increase in duty on scrap exports from Ukraine may be interpreted as a restrictive measure, said the EU delegation in Ukraine.
According to the report, which on Thursday released on the official website of the EU delegation in Ukraine in Facebook, the Union were disappointed by the amendments to article 13 of the law On foreign economic activity, which were adopted by the Verkhovna Rada on April 21.
The EU believes that the increase in duty on scrap exports from Ukraine could constitute restrictive trade measures that are contrary to the spirit and letter of multilateral and bilateral commitments undertaken by Ukraine, the report said.
In particular, it is noted in the document, in the framework of deep and comprehensive free trade area (FTA) with the EU, Ukraine is obliged not to introduce new export duties and to note existing during the transitional period.
The European Union recalls that, in the framework of EU Memorandum of understanding on macro-financial assistance of 22 may 2015, Ukraine has committed itself to refrain from imposing new trade restrictions or measures that distort trade, in accordance with its obligations under the WTO, the statement said.
Therefore, according to the EU, if the law comes into force, it will inevitably cause the concern of Ukraine's international obligations and undermine investor confidence in the Ukrainian trade policy.
The EU believes that such measures are an inappropriate method for solving problems of competitiveness of the Ukrainian steel industry. EU urges Ukraine to maintain its sustainable commitment to the free trade regime, the report says.
As reported, on 21 April 2016 the Verkhovna Rada temporarily, for a period of three years, increased the duty on exports of ferrous scrap from 10 euros to 30 euros per ton. For the corresponding bill No. 3868 on Thursday voted 268 deputies. This should reduce the cost of scrap in the domestic market, which is beneficial to domestic steel plants.
As of April 28, the law sent for signature to the President of Ukraine but not yet signed and therefore not entered into force.