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Committee on Regional Trade Agreements - Ukraine-Armenia implementation report
日期:2016/02/05
作者:Committee on Regional Trade Agreements
文件編號:WT/REG171/R/I
附件下載:WTREG171RI.doc
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Ukraine-ARMENIA Implementation Report

        This Implementation Report has been drafted in accordance with Article 15 of the Transparency Mechanism Decision and following the draft guidelines contained in JOB/REG/4 issued in January 2013.

 

        This report does not prejudge the Parties' position on the concept and the duration of the implementation periods in FTAs and their relationship to the "reasonable length of time" within the meaning of Art. XXIV:5(c) of the GATT 1994 or "the reasonable time-frame" within Art. V:1(b) of the GATS.

 

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1  BACKGROUND INFORMATION ON THE AGREEMENT

1.1.  The Free Trade Agreement between the Cabinet of Ministers of Ukraine and the Government of the Republic of Armenia was signed on 7 October 1994 and entered into force since 18 December 1996.

1.2.  The Agreement covers trade in goods and based on Article XXIV of GATT.

1.3.  Statistical data on trade in goods between the Parties, some indications on Parties' import coverage after full implementation of the FTA as well as information about trade defence measures can be found in Annexes to this report.

2  PROVISIONS ON TRADE IN GOODS

2.1  Import duties and charges, and quantitative restrictions

2.1.  Parties committed not to impose taxes and charges on imports from another Party higher than those imposed on domestic goods or imports from the third countries.

2.2.  Rules for transportation, storage and payments for goods originating in another Party should not differ from those applied to goods from third countries.

2.1.1   Tariffs

2.3.  Duty-free trade regime is applied to all goods.

2.4.  No tariff rate quotas are applied.

2.1.2  Quantitative restrictions

2.5.  Parties committed that quantitative or other special restrictions may be introduced only within reasonable limits and for a strictly defined time period.

2.6.  In Armenia, according to the Resolution № 902[1] imports of selected types of wood and articles of wood has been banned since 2000.

2.7.  Ukraine applied import quotas on cane sugar from 1998 to 2001 and from 2003 to 2004.[2] Also, import quotas on selected types of coal and coke were introduced in Ukraine in 2013.[3] However, Ukraine didn't import such products from Armenia.

2.1.3  Products excluded from liberalization

2.8.  Agreed list of exemptions should be an integral part of the Agreement.

2.1.4  Final tariff schedule applied by RTA parties

2.9.  Duty-free trade is implemented over the entire tariff schedule unless exemptions are agreed upon between the parties and respective protocols ratified by both parties.

2.2  Export duties and charges, and quantitative restrictions

2.2.1  Tariffs

2.10.  No export duties or taxes and charges of equivalent effect should be applied by Parties in bilateral merchandise trade.

2.11.  However, Ukraine has applied export duties on waste and scrap of metal since 2006. According to the Law № 441-V[4], this export duty is applied irrespective of existing free trade agreements.

2.12.  The Republic of Armenia does not apply export duties.

2.2.2  Quantitative restrictions

2.13.  Parties agreed that quantitative restrictions on exports may be applied in trade between the Parties.

2.14.  From 2012 voluntary export restrictions have been applied in Ukraine on exports of selected cereals, wheat and maize. Each marketing year the Ministry of Agrarian Policy and Food and exporters sign Memorandum of Understanding defining consensus amounts of agricultural exports.

2.15.  Since 2012 Ukraine has applied export quotas on some irreplaceable natural resources, in particular, on natural gas of the Ukrainian origin, and on slag, ash and residues containing copper and zinc.

2.16.  In Armenia, according to the Resolution № 902, exports of selected types of wood and articles of wood has been banned since 2000.

2.3  Regulatory provisions on trade in goods

2.3.1  Rules of origin

2.17.  Initially rules of origin in Ukraine-Armenia bilateral trade were regulated by Rules of Origin of Goods dated 24 September 1993[5], signed by the CIS member states.

2.18.  However, because of plurilateral free trade negotiations within the CIS, contractual framework on rules of origin has changed several times.

2.19.  Revised Rules of Origin of Goods were passed on 30 November 2000.[6] In 2009 Agreement on Rules of Origin of Goods in the CIS[7] was signed. It was ratified on 7 July 2011, and came into force for Ukraine on 14 September 2011.

2.20.  No special references to WTO legal documents are included in rules of origin applied in Ukraine-Armenia bilateral trade.

2.3.2  Non-tariff barriers

2.21.  No specific commitments regarding standards, technical regulations and conformity assessment are included into the Agreement.

2.3.3  Sanitary and phytosanitary measures

2.22.  No specific commitments regarding sanitary and phytosanitary measures are included into the Agreement.

2.3.4  Trade defence instruments

2.23.  No specific commitments regarding defence instruments are included into the Agreement.

2.24.  Information about Ukrainian trade defence instruments that could affect Armenia can be found in Annex 2 to the report.

2.25.  Analysis of application of trade defence instruments by Ukraine shows that some products imported from Armenia were subject to safeguard measures applied irrespective to the country of origin. In particular, safeguard measures in the form of quotas on parts of tubes and pipes of iron or steel were applied in 2008-2011.

2.26.  The Republic of Armenia started application of trade defence instruments only since the date of the accession to the Eurasian Economic Union (2 January 2015). In particular, Armenia will apply a safeguard measure in the form of quotas on harvesters and modules thereof from 31 December 2015 till 21 August 2016.

3  PROVISIONS ON TRADE IN SERVICES

3.1  Commitments

3.1.  The Agreements does not contain any specific commitments on trade in services.

4  OTHER PROVISIONS IN THE AGREEMENT

4.1  Export control

4.1.  Parties agreed to coordinate policy on export control regarding third countries. In order to maintain such cooperation, an effective system of export control should be created by facilitating regular consultations and mutually agreed measures.

4.2.  The most recent law that regulates state control of export in Ukraine is the Law "On State Control of international Transfers of Goods Designated for Military Purposes and Dual-Use Goods"[8] passed on 20 February 2003. The state control is conducted by the State Service for Export Control of Ukraine.

4.3.  In Armenia, the most recent law[9] setting norms in the area of export control was passed on 15 May 2010. The law is aimed at protection of national interests; compliance with international obligations regarding proliferation of weapons of mass destruction; limitation of transfer of conventional weapons. The Ministry of Economy is an authorized state body in the sphere of export control in Armenia.

4.2  Transit

4.4.  Free transit principle is an important precondition for implementation of Agreement. Both Parties committed to ensure free transit of goods originating from customs territory of another Party or third countries. Free movement of goods shipped to another Party or any third country should also be guaranteed.

4.5.  Parties took an obligation to provide to another Party's exporters, importers or carriers all available and required facilities and services for transit on terms that are not worse than those that are provided to their own transport operators or carriers of any third country.

4.6.  Procedures and conditions of transit are regulated according to international rules.

4.3  Re-exports

4.7.  No specific commitments regarding re-exports are included into the Agreement.

4.4  Trade and competition

4.8.  Unfair business practices are recognized as those which contradict the Agreement. They may inter alia include those which aim at hindering or restricting competition in the Parties' markets, as well as using market power.

4.9.  Cooperation in the field of competition policy in the Commonwealth of Independent States is regulated by the Agreement on Coordinated Competition Policy[10] signed on 25 January 2000.

4.5  Common classification

4.10.  Parties committed to use 9-digit commodity nomenclature based on the Harmonized Commodity Description and Coding System for the purposes of tariff and non-tariff measures, customs operations as well as exchange of statistics.

4.11.  The most recent commodity classification used by Ukraine and Armenia is based on 2012 edition of Harmonized System Nomenclature by World Customs Organization (HS classification).

4.6  Economic cooperation and capacity building

4.12.  Since 1997 economic cooperation between Ukraine and Armenia has been conducted in accordance with the Agreement on Friendship and Cooperation[11]. In addition to that, the development of bilateral economic relations between Ukraine and Armenia during 2001 - 2010 had been based on the Agreement on Economic Cooperation.[12]

4.13.  In 1998 Agreement between the Government of Ukraine and the Government of the Republic of Armenia on Industrial Cooperation[13] was ratified.

4.6.1  Information exchange

4.14.  Competent authorities of the Parties committed to establish a mechanism of information exchange. Changes in the national legislation, which can affect implementation of the Agreement, should be immediately provided to another Party, specifically in trade and economic area including investments, taxation, banking, insurance and other financial services, transportation, customs and customs statistics.

4.15.  Information exchange channels are official enquiries to Ministries, meetings of the Joint Intergovernmental Ukrainian-Armenian Commission on Economic Cooperation, international organizations and meetings.

4.6.2  Joint Commission

4.16.  Parties agreed to establish joint Ukrainian-Armenian commission in order to monitor realization of the Agreement and work on further improvement of trade and economic cooperation.

4.17.  The Joint Ukrainian-Armenian Intergovernmental Commission on Economic Cooperation was established on 1996, according to Article 12 of Ukraine-Armenian FTA. The first meeting of the Joint Commission was held on 20 July 1999 in Kyiv. Currently, 7 sessions were held. The recent meeting took place on 30 November 2013.

4.18.  Issues discussed during Commissions meetings include assessment of bilateral economic cooperation programs, current state and perspectives of trade and economic cooperation, including industry, agriculture, transport, and nuclear energy spheres.

4.7  Protection of legitimate objectives

4.19.  The Agreement allows Parties to apply measures commonly acceptable by international practice in order to protect their legitimate objectives or implement their commitments according to their international rights, including information affecting the interests of national defence; trade in arms, munitions and military equipment; research or production related to the defence needs; supply of materials and equipment used in nuclear industry; protection of public morality and public order; protection of industrial and intellectual property; trade in gold, silver, and other precious metals and stones; protection of human, plant and animal health.

4.20.  On 28 December 2014 Law of Ukraine "On measures concerning stabilization of the balance of payments of Ukraine in compliance with Article XII of the General Agreement on Tariffs and Trade 1994" No. 73-VIII[14] and the Law of Ukraine "On Amending the Customs Code of Ukraine (concerning stabilization of the balance of payments)" No. 74-VIII[15] entered into force. Pursuant to these Laws, Ukraine introduced temporary import surcharge of 10% for agricultural goods and 5% for non-agricultural goods, except essential goods. The measure is to be applied for one year.

4.21.  Ukraine has applied export quotas on selected types of precious metals and stones since 1992.

4.22.  Since 2011 import quotas on ozone-depleting substances have been introduced by Law № 327-N[16] in Armenia.

4.8  Dispute settlement

4.23.  The Parties have declared intention to avoid disputes in mutual trade. If disputes over interpretation and implementation of the provisions of the Agreement arise, they should be settled through consultations.

4.24.   In 2010, Ukraine requested the WTO for consultations with Armenia and asked for the establishment of a panel because of Armenia's measures towards the import of cigarettes and alcoholic beverages. At the meeting on 25 October 2010, the Dispute Settlement Body deferred the establishment of the panel.

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Annex 1

Statistics on trade in goods

Table A1.1: Ukraine: Imports from Armenia (million $)

Year

Total

Agricultural products*

Non-agricultural products*

1996

4.0

0.2

3.8

1997

6.1

0.5

5.6

1998

4.5

1.3

3.2

1999

1.8

0.5

1.3

2000

3.4

1.6

1.8

2001

8.4

5.1

3.3

2002

5.4

4.5

0.9

2003

6.2

5.6

0.6

2004

5.6

4.1

1.5

2005

13.2

9.6

3.6

2006

21.3

10.1

11.2

2007

35.8

12.1

23.7

2008

25.5

17.6

7.9

2009

28.2

7.1

21.1

2010

18.0

8.0

10.0

2011

18.5

9.0

9.5

2012

23.0

11.7

11.3

2013

19.7

12.4

7.3

2014

13.3

7.4

5.9

*             WTO definition.

Source:   UN ComTrade.

 

Table A1.2: Armenia: Imports from Ukraine (million $)

Year

Total

Agricultural products*

Non-agricultural products*

1996

25.0

19.9

5.1

1997

10.7

2.5

8.2

1998

8.4

2.1

6.3

1999

11.6

5.8

5.8

2000

12.0

6.9

5.1

2001

22.0

12.5

9.5

2002

33.4

16.2

17.2

2003

49.7

23.0

26.7

2004

70.5

38.3

32.2

2005

97.3

41.3

56.0

2006

137.2

46.8

90.4

2007

215.1

70.7

144.4

2008

263.6

95.8

167.8

2009

165.6

62.1

103.5

2010

201.3

78.3

123.0

2011

227.6

114.8

112.8

2012

179.2

80.3

98.9

2013

181.0

88.3

92.7

2014

173.4

92.5

80.9

*             WTO definition.

Source:   UN ComTrade.

 

Table A1.3: Ukraine import coverage after full implementation of the Agreement

Coverage

1996

1997

2013

2014

% of tariff lines

100

100

100

100

% of imports

100

100

100

100

Note:       Line coverage (% tariff lines) is calculated as duty-free quota-free Ukraine's tariff lines on imports from Armenia divided by total Ukraine's tariff lines on imports from Armenia.

              Trade coverage (% imports) is calculated as duty-free quota-free Ukraine's imports from Armenia divided by total Ukraine's imports from Armenia.

              For calculation of the coverage rates the preferential tariffs in force on 1 January of the indicated years has been used.

Source:   Ukraine-Armenia FTA.

 

 


Annex 2

Trade defence instruments

Table A2.1: Ukraine: safeguard measures applied irrespective to the country of origin

HS Nomenclature

Code

Product description

Measure

Years

HS 1996

1905906000

Bread, pastry, cakes, biscuits and other bakers' wares

tariff

2003-2007

HS 1996

8413919090; 8412905000; 7325109900; 7326909700

Parts of pumps and engines; articles of iron or steel

quota

2005-2006

HS 1996

6804221800

Millstones, grindstones, grinding wheels

tariff

2005-2009

HS 1996

6807101000

Articles of asphalt or of similar material

tariff

2005-2009

HS 1996

3506100010

Glues

tariff

2006-2007

HS 1996

8482109000

Ball bearings

tariff

2006-2009

HS 1996

6002921000; 6002923000; 6002929000; 6002933100; 6002933300; 6002933900

Knitted or crocheted fabrics

tariff

2007-2010

HS 1996

5208221500; 5208221900; 5208229500; 5208229900; 5208290000; 5208321500; 5208321900; 5208329500; 5208329900; 5208390000; 5208521000; 5208529000; 5208590000

Woven fabrics of cotton

tariff

2007-2010

HS 1996

8539311000

Electric filament or discharge lamps

tariff

2007-2010

HS 1996

7304291100

Steel pipes

quota

2008-2016

HS 1996

3605000000

Matches

tariff

2009-2012

HS 1996

7005293500

Sheet glass

tariff

2009-2010

HS 2007

8703221000; 8703231910

Motor cars

tariff

2013-2015

HS 2012

6911100000

Tableware and kitchenware of porcelain

tariff

2014-2017

Source:   the official newspaper "Uryadoviy Courier".

 

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