EU names Ukraine free market economy (10/22/00)

EU names Ukraine free market economy

by Roman Woronowycz
Kyiv Press Bureau

KYIV - The European Union on October 4 extended the status as a free market economy to Ukraine, which will give the country's exporters more leverage in resolving anti-dumping disputes to their benefit.

The EU Council of Ministers meeting in Brussels adopted a proposal to extend its special ad hoc market regime in anti-dumping proceedings to six other countries besides Ukraine, including Vietnam, Albania, Kazakstan and Georgia.

Ukraine's Vice Minister of the Economy Andrii Honcharuk said the decision would allow Ukraine to sell more of its products in Europe and help to better Ukraine's balance of trade there.

"It will significantly improve Ukraine's position in examination of anti-dumping cases with member countries of the European Union," said Mr. Honcharuk.

The special regime gives exporters in these countries the possibility to prove they are operating under market economy conditions and will allow them to use their own data to verify that their prices are not artificially set. The new policy will enter into force on October 12 and apply to all investigations initiated after the date.

EU Trade Commissioned Pascal Lamy welcomed the news as recognition of the improvements that have taken place in the countries that attained the status, reported Interfax-Ukraine.

"Extending this regime reflects the important economic reforms undertaken in these countries. From now on all countries with an economy in transition who join the WTO will automatically be eligible for this special system," he explained.

The ad hoc regime giving countries market economy status was first introduced in anti-dumping legislation in 1998 and applied to Russia and China. It gave exporters in these countries the possibility, on a case-by-case basis, to be treated as market economy exporters on the condition that evidence was presented that showed prices and costs were not influenced by the state and they operated in market economy conditions based on criteria set out in the European Union's anti-dumping regulations.

| Home Page |