2.2.4. THE PROCEDURE FOR IMPOSING TRADE RESTRICTIONS AND PROTECTION OF THE INTERIOR MARKET FROM UNFAIR COMPETITION

International commonwealth, having declared free trade and openness of international markets, undertook to notably narrow and gradually ban application of tariffs and other restrictive measures within GATT/WTO system. However, having opened their markets with free competition to cheaper foreign commodities, overseas producers found themselves under tough pressing, which they try to switch to their Governments claiming to close markets for imported products. As the history of imposing trade restriction witnesses, in the last seven years in the terms of tough competitive fight for the commodity markets, antidumping, antidonation, and special measures became one of the mechanisms, which are often used for preventing access of foreign-made commodities to the national markets of selected countries.

Antidumping Code of Ukraine, with the main part consisting of the three Laws of Ukraine, namely, “On protection of national producer from the dumping import”, “On protection of national producer from donated import”, “On introduction of special measures in regard to import to Ukraine”, was worked out on the basis of General Agreement on tariffs and trade of the year 1994 and three specialized agreements approved by Uruguay Round of Multilateral Trade Negotiations

Such protection of interior market from imported commodities exists in virtually all the countries worldwide in a set of three legal procedures, namely, antidumping, antidonation, and special (aimed against mass import) processes.

To conduct these processes in compliance with the Ukrainian laws spelled in the Antidumping Code, special administrative body of the executive power was created, namely, Inter-administration Commission for International Trade headed by the Minister of Economy of Ukraine. This commission includes officials of the respective ministries and administrations of Ukraine.

According to the effective legislation, the International Commission is authorized to ensure operative state regulation of foreign trade activity in Ukraine, make decisions as to violations and conducting of antidumping, anti-donation or special inquiry and introduction of antidumping, compensation or special measures.

The Ministry of Economy of Ukraine is the working body of Commission. In compliance with the Article 9 of the Law of Ukraine “On foreign trade activities”, the Ministry is authorized to conduct antidumping, antidonation, and special inquiries.

The Ministry of Economy as a working body of Inter-administration Commission for Foreign Trade makes preliminary analysis of relevant materials, information, and data from the viewpoint of potential violation and conducting of such inquiry, prepares conclusions and recommendations to Commission as regards violation and conducting of such inquiry, introduces necessary measures for conducting antidumping, antidonation or special inquiry, analyzes materials, information, and data as regards respective suit, prepares conclusions and recommendations for the Commission on introduction of antidumping, compensation, and special measures.

Any antidumping, antidonation, or special process starts from submitting claim by the national producer or executive power body to the Ministry of Economy as a body authorized by the effective legislation to deal with these suits. Claim should contain information regarding the facts of dumping, donation or mass import, which, according to the applicant, take place and cause him damage. Then, litigants are defined, evidence is adduced etc.

According to the results of inquiry, antidumping, antidonation, and special measures can be introduced. These measures finally result in antidumping, compensation duty, introduction of quoting regime. Usually, the term for these measures reach 5 years or can be prolonged.

[12.12.2000]

Official date the site was started

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