"Ukrkondprom" warns government approval of the accession of Kazakhstan to the WTO in terms of the application of discriminatory actions against Ukrainian products from Kazakhstan

Apr 02 2013 published c earnings

"Ukrkondprom" warns government approval of the accession of Kazakhstan to the WTO in terms of the application of discriminatory actions against Ukrainian products from Kazakhstan

This statement was made president of the Association "Ukrkondprom" - Ukrainian association of confectionery industry, krohmalopatokovoyi products and food concentrates - Alexander Baldynyuk.

Chapter "Ukrkondpromu" refers to the statements of representatives of the Kazakh delegation in preparation for the two sides to visit Kazakhstan prime minister in Ukraine, be held 3-4 April ts.r., on the alleged existence of a political agreement between the two governments signing on unconditional Ukrainian side bilateral protocol on mutual access to markets, Kazakhstan will open the way to WTO.

"Such unconditional consent of Ukraine to join WTO in Kazakhstan in terms of the application of Kazakhstan protective tariffs on Ukrainian confections contrary to national economic interests", - stated Alexander Baldinyuk.

Chapter "Ukrkondpromu" noted, that the illegal actions of Kazakhstan only 2012 year Ukrainian confectioners have caused damage worth about 400 million. UAH. Export confectionery, that fell within the scope of protective measures, from Ukraine to Kazakhstan for 2012 year on average fell by 74,5%, and in some commodity positions - on 99%.

President "Ukrkondpromu" drew attention to the fact, what Kazakh side during special protective investigation, the results of which were introduced protective measures against confectionary, repeatedly violated international law, procedures, established by the relevant WTO agreements.

Decision of the Interdepartmental Commission on International Trade of Ukraine, Kazakhstan relatively restrictive measures confectionery deemed unfriendly and discriminatory.

President "Ukrkondpromu" noted, that passivity of the Ukrainian side in the issue of removal of inappropriate and unfair restrictive measures create a dangerous precedent unpunished violations of international human Ukrainian state and its trade and economic interests.

For the record.

IN 2005-2007 years of Kazakhstan held a special protective investigation concerning imports of chocolate confectionery. Despite significant violations of the Agreement on free trade in the CIS and procedures, defined by the Agreement on Special Safeguards WTO, admitted during the investigation, 14.09.2011 y. The Government of the Republic of Kazakhstan adopted Resolution № 1055 "On the introduction of protective measures on the importation of certain kinds of confectionery", which introduced protective tariffs on chocolate products for a period of 3 years.

These measures are, essentially, restrictive, and have a pronounced anti-Ukrainian character, as major importers of Kazakhstan confectionery products are Ukraine and Russia, but the Russian Federation is not subject to duties.

Minister of Ukraine for the application of the Association "Ukrkondprom" conducted an investigation to establish the discriminatory and hostile actions by the Republic of Kazakhstan with respect Ukrainian enterprises of the confectionery industry.

The results of this investigation, 02.07.2012 y. The Interdepartmental Commission on International Trade of Ukraine made a decision № 278, whereby established that discriminatory and unfriendly actions by the Republic of Kazakhstan.

Despite this fact, unfriendly actions of Kazakhstan left without adequate response from the Ukrainian side.

Ukrainian bakers suffer significant losses due to trade restrictions Kazakh. Falling exports from Ukraine to Kazakhstan was 18,4 thousand tons. Total investment, that were invested in the core business confectionery industry, c 2011-2012 years. is close 100 million. USD., loss of wage fund of workers in the confectionery business 2012 year are 14,4 million. USD., losses due to shortfall in state tax revenue, tax on personal income and single social contribution to 2012 year are 15,3 million. UAH.

Protection confectionery industry position in traditional markets is the national interest of the Ukrainian State. The volume of domestic confectionery is about 2% GDP Ukraine. In the confectionery industry employs at least 170 th. workers. for 2012 Year confectionery companies listed in the budgets of all levels over 4 billion. UAH. The share of domestic products in the world market is about 1,2%. In 2012 y. confectionery was exported from Ukraine in the amount of 1,1 billion. US. USA. It is 13,5% total exports of processed food products from Ukraine. The positive balance of foreign trade in confectionery is 819,4 million. US. USA.

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