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Table of contents
1. AT WTO, U.S., OTHERS CRITICIZE TRADE POLICIES IN RUSSIA, UKRAINE, INDONESIA.................

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Document 1 of 1

AT WTO, U.S., OTHERS CRITICIZE TRADE POLICIES IN RUSSIA, UKRAINE, INDONESIA

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Abstract: [...]the U.S. said there are a number of reasons to doubt Ukraine's contention that it has not indicated
an intent to withdraw any concession and that it may not actually raise its bound duties to higher levels.
Full text: The United States this week blasted a series of trade policies put in place by Russia, Ukraine and
Indonesia during a meeting of the World Trade Organization's Goods Council in which other WTO members,
including the European Union and Japan, also expressed similar criticism, according to Geneva sources.
The U.S. had requested that the March 25 Goods Council meeting include a discussion of Russia's
implementation of its WTO accession commitments. At the meeting, the U.S. spoke out against a Russian auto
recycling fee -- which the U.S. says discriminates against imported autos -- and also generally criticized
Russia's implementation of its sanitary and phytosanitary (SPS) obligations, although it stopped short of
charging that Russia is violating its WTO commitments.
The U.S. also reiterated its request for Russia to join the Information Technology Agreement, a commitment that
was effectively included in Russia's WTO accession package. At a separate ITA meeting on March 22, Russia
said it still has to secure a final agreement on a new tariff schedule from Kazakhstan and Belarus -- which
together with Russia form a customs union -- before it can join, sources said.
The private-sector members of the President's Export Council earlier this month urged President Obama to
press Russia to join the ITA, arguing in a letter that "a failure to satisfy [Russia's] WTO commitments sets a
negative precedent and undermines the effectiveness of the world trading system."
When it comes to SPS obligations, the U.S. said it was worried about the harmonization of Russian SPS
measures with international standards and the adoption of inspection guidelines in accordance with the Codex
Alimentarius Commission. It also flagged the approval of foreign establishments to export to Russia and
Russian SPS measures that are more restrictive than international standards as areas of concern.
Harmonization of SPS measures with international standards could be a reference to Russia's move to
effectively ban all imports of U.S. beef, poultry and turkey because of its zero tolerance policy for a veterinary
drug known as ractopamine. Russia has implemented this zero tolerance policy even though the Codex has
approved a maximum-residue level (MRL) for ractopamine in beef and pork at 10 parts per billion, which is the
basis for U.S. claims that Russia's policy is out of line with international standards.
The EU took an even stronger position than the U.S. at the Goods Council meeting, charging that there has
been a "surge of protectionist measures" in Russia, some of which are "not in line with the WTO commitments
of Russia." In addition to the auto recycling fee, the EU complained about Russian SPS measures, including an
import ban of live animals as well as new bans on dairy and "meat ready to eat" products, seed potatoes and
chilled meat.
The U.S., EU and others had previously complained about Russia's auto recycling fee and some of these SPS
measures at a Nov. 26 meeting of the Goods Council (Inside U.S. Trade, Nov. 30).
At the meeting this week, Russia responded that it is currently drafting a revision to the auto recycling law that
would provide equal treatment for domestic and imported products. It said it hoped that the revision will be
approved by its legislature this spring, according to Geneva sources.
On Ukraine, the U.S. and 22 other WTO members reiterated their worries about the country's request last
September to renegotiate tariff levels on 371 products under Article XXVIII of the General Agreement on Tariffs
and Trade (GATT), sources said. The U.S, EU, and others have urged Ukraine to withdraw its request, arguing
that it has serious commercial and systemic implications, although they have also submitted claims of interest to
enter into talks with Ukraine on the proposed changes.
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At this week's Goods Council meeting, these WTO members noted that six months have passed since Ukraine
filed its notification, but that it still has not responded to these claims of interests, which were submitted in midDecember, sources said. Ukraine took note of these statements and said it would relay them back to its capital,
stressing that its notification serves a legitimate purpose, according to these sources.
The U.S. also pushed back against comments made by Ukraine at a February General Council meeting. While
Ukraine at that meeting argued that its Article XXVIII proposed actions would only cover 3 percent of its tariff
schedule, the U.S. this week countered that these tariff lines cover products that are critically important to
Ukraine and the countries that export to it.
Secondly, the U.S. said there are a number of reasons to doubt Ukraine's contention that it has not indicated an
intent to withdraw any concession and that it may not actually raise its bound duties to higher levels. One
reason is that Ukraine has already made clear it is interested in raising tariffs where possible. Specifically, the
U.S. noted that Ukraine's legislature recently raised roughly 100 applied tariffs to their bound levels, and that it
has also raised two auto tariffs above their bound levels by instituting a safeguard earlier this month.
Another reason is that, even though the procedures of Article XVIII state that if a WTO members wants to
modify a concession under this article then the proposed modification should be stated in the initial notification
or as soon as possible thereafter, Ukraine has yet to indicate its proposed modifications, the U.S. said. It
questioned why Ukraine would initiate the Article XXVIII process at all if it did not intend to raise its tariff
bindings.
In a related development, the U.S., EU and Japan charged that Ukraine had failed to live up to the procedural
requirements of the WTO Agreement on Safeguards when it imposed the safeguard on two auto tariff lines.
Article 12.1 of the Safeguards Agreement requires members to notify the WTO of the initiation of a safeguard
investigation, the finding of serious injury or threat thereof caused by increased imports, or the decision to apply
a safeguard measure. Article 12.3 requires that WTO members proposing to apply a safeguard measure
provide adequate opportunity for prior consultations with other interested members.
In its Goods Council statement, the U.S. said that the results of Ukraine's safeguard investigation were never
notified to members and that the consultation requirement had not been met. As a result, the U.S. and EU
called on Ukraine to either withdraw the safeguard measures or suspend their April 14 implementation, permit
disclosure of pertinent information to all WTO members, and allow for consultations prior introduction of the
safeguard.
On Indonesia, the U.S. blasted a wide range Indonesian trade policies that it said are restricting access to that
country's market and affecting Indonesia's ability to fulfill its WTO commitments. The U.S. had previously raised
these concerns at meetings of the Goods Council last June and last November, and has already initiated one
WTO dispute over Indonesia's import licensing requirements for horticultural products, animals and animal
products.
Indonesia this week blocked a first request by the U.S. for a WTO panel in this dispute, but would have to agree
to the establishment of a panel if the U.S. makes a second request (see related story).
At the March 25 Goods Council meeting, the U.S. said it continues to have many questions about Indonesia's
entire import licensing regime, going beyond the specific measures challenged in the WTO dispute, and how
they are consistent with the GATT and the WTO Agreement on Import Licensing Procedures. It said it was
considering raising additional concerns at the April meeting of the Import Licensing Committee.
Subject: International trade; Meetings; Councils; Studies;
Location: Ukraine, Japan, Russia, United States--US
Company / organization: Name: European Union; NAICS: 926110, 928120; Name: World Trade Organization;
NAICS: 928120;

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Publication title: Inside US Trade

Volume: 31
Issue: 13
Publication year: 2013
Publication date: Mar 29, 2013
Publisher: Inside Washington Publishers
Place of publication: Arlington
Country of publication: United States
Publication subject: Business And Economics--International Commerce
ISSN: 08971676
Source type: Trade Journals
Language of publication: English
Document type: News
ProQuest document ID: 1321357833
Document URL: http://search.proquest.com/docview/1321357833?accountid=25704
Copyright: Copyright Inside Washington Publishers Mar 29, 2013
Last updated: 2013-03-29
Database: ABI/INFORM Trade & Industry

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