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UKRAINE, FOR THE FIRST TIME, BRINGS A COMPLAINT TO THE WTO
27.07.10 | breaking news It has happened! For the first time ever, Ukraine, as a WTO member country, has made use of its right to settle a trade dispute – by formally complaining to the WTO against Armenia, which in the opinion of the complainant applies discriminatory taxes and customs duties on imported tobacco and alcohol products. This is how this looks like: “Request for Consultations by Ukraine The following communication, dated 20 July 2010, from the delegation of Ukraine to the delegation of Armenia and to the Chairman of the Dispute Settlement Body, is circulated in accordance with Article 4.4 of the DSU. My authorities have instructed me to request consultations with the Government of Armenia pursuant to Article 4 of the Understanding on Rules and Procedures Governing the Settlement of Disputes and Article XXII:1 of the General Agreement on Tariffs and Trade 1994 (GATT 1994) on the following matters:…” Then, the request sets forth the claims, starting from the following: in accordance with its Law “On presumptive tax on tobacco products,” Armenia levies the tax on imported cigarettes at the fixed rate of AMD 6500 (Armenian Drams) per 1,000 pieces, whereas that tax on like domestic cigarettes is levied at the rate of AMD 4750. In the opinion of Ukraine, that has been in violation of the WTO principle of national treatment, in contravention of Article III of the GATT 1994 and inconsistent with Armenia’s obligations as they were set out in its Protocol on the Accession. The full text of the complaint in English can be read here (pdf). During ten days from the receipt of the consultations request, Armenia has to respond. For Armenia, just as for Ukraine, this is the first experience ever of dispute settlement in the WTO. We will be closely watching the progress of events and will keep our readers informed about it. |
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