It is reasonable to apply the norms of the World Trade Organization (WTO) in order to protect domestic producers of ferroalloys from import growth. Former deputy Industrial Policy Minister of Ukraine, Vice President of the Ukrainian National Committee of International Trade Chamber Serhiy Hryshchenko said this in a comment to UNIAN.
He reminded that during the period of January-August 2011, compared with the same period of the last year, import of ferroalloys to Ukraine grew by 2.2 times – up to 157.2 thousands tons, in a cost parameter it makes up 377.1 million dollars.
At the same time, according to the words of S. Hryshchenko, in accordance with the norms of the WTO, member of which Ukraine is from 2008, the country has an arsenal of tools of resistance to aggressive growth of import of ferroalloys.
“WTO documents suggest three conditions under which the government of any country has a right to introduce measures to protect domestic producer. The first one is a considerable increase in imports of a product within a certain period of time. The second one is a presence of damage for domestic producer, for example, lessening of the market share, which a national manufacturer occupies and forced reduction of employees. The third one is an establishing of a direct cause-and-effect relation between increase in import and deterioration of domestic producer, the damage that was done to a domestic producer as a result of increased import. These three conditions should be fulfilled simultaneously”, - noted S. Hryshchenko. According to information of the expert, in 2010, imported ferroalloys occupied only 25% of the domestic market of ferroalloy production, and now their share makes up 52%.
“In the case of import of ferroalloys to Ukraine there are three conditions above mentioned for introduction of protective measures.
Consequently, the country has good reasons to apply WTO norms to restrict imports of ferroalloy production "- the expert believes.
As UNIAN reported earlier, in January-October this year, Ukrainian ferroalloy enterprises have significantly reduced output.
“Zaporizhzhya plant of ferroalloys” JSC has reduced production by 27.2%, or by 65.8 thousand tons - up to 175.6 thousand tons for 10 months of 2011 compared with the same period of the last year.
“Nikopolskyi plant of ferroalloys” JSC has reduced production by 10.7%, or by 82.7 thousand tons - up to 686 thousand tons in January – October 2011 compared with the same period of the last year.
“Stakhanovskyi plant of ferroalloys” JSC has reduced production by 1.7%, or by 3.1 thousand tons - up to 177.5 thousand tons for January – October 2011 compared to the same period of the last year.