EUEA doesn’t support the recommendations of the Ministry of Economy

The European-Ukrainian Energy Agency (EUEA) doesn’t support the recommendations of the Ministry of Economy.

It will be recalled that in late March, the Ministry for Development of Economy, Trade and Agriculture of Ukraine (the Ministry of Economy) prepared a draft of the Main facts and findings of the Ministry of Economy based on the results of a safeguard investigation regarding imports of wires into Ukraine regardless of the country of origin or export. Based on this document the Ministry of economy plans to recommend to the Interdepartmental Commission on International Trade (ICIT) to apply a safeguard duty of 23.5%.

According to the Main facts and findings of the Ministry of Economy, safeguard measures are proposed to be applied for a period of three years with an annual liberalization of 5%: in 12 months at a rate of 22.3%, and in 24 months – 21.2%.

EUEA considers that the adoption of such measures is inexpedient and may adversely affect the investment climate of the RES sector and the state as a whole. Moreover, such a decision may lead to a shortage of cable products in the market, restrict healthy competition, increase prices for these products and, as a result, contribute to further market monopolization.

Given this, the European-Ukrainian Energy Agency urges the Ministry of economy and ICIT not to introduce a safeguard duty on imports of wires and other cable products to Ukraine.

We hope that in making its decision, the Interdepartmental Commission on International Trade will take our statement into account and will make a reasonable and considerable decision.