Finally, Ukraine is getting the acknowledgement it has been striving for. Numerous anti-dumping investigations instituted against Ukraine have gradually moved to a new level. For instance, on 2 May 2001 the Canada Customs and Revenue Agency recognized Ukr
EVERYONE MINDS HIS OWN BUSINESS
EVERYONE MINDS HIS OWN BUSINESS
Finally, Ukraine is getting the acknowledgement it has
been striving for. Numerous anti-dumping investigations instituted against Ukraine have
gradually moved to a new level. For instance, on 2 May 2001 the Canada Customs and Revenue
Agency recognized Ukraine’s metal industry as a market economy.
This means that antidumping duties imposed against
Ukrainian metal imports will be revised in each particular instance from now on. Each
metallurgical mill will have to prove its market economy status on its own, and will be or
will not be assigned a specific duty.
There are two key points to this event. Firstly, Ukraine
has made this victory owing to extremely proactive attitude of domestic integrated mills,
particularly, Krivorozhstal. The determination and persistency of this company show a
general change in the attitude of Ukrainian businesses.
Secondly several other countries may revise their policies
towards Ukraine following Canada’s example. Since antidumping inquiries are frequently a
matter of politics rather than economy, this metallurgical demarche of the G7 country can
be interpreted as a recommendation.
Ukraine was recognized as a market economy mainly owing to
efforts of Canada’s Tarcon and Ukraine’s Krivorozhstal. A tremendous and painstaking
effort turned out to be a success. The new market economy status is now automatically
applied to the steel coil investigation currently under way in Canada.
Previously, local companies believed that it was better to
agree on voluntary limitation of exports. The situation has changed now, as each
metallurgical mill must participate in the inquiry due to the new status.
In October 2000 the European Union reached a similar
decision with respect to Ukraine, namely the European Commission accepted Ukraine as a
market economy. In fact, Canada did nothing but followed the EU. Perhaps, Canada may
influence the USA’s views towards Ukrainian metal. It is a burning issue because Ukraine
makes significant metal exports to the USA and the United States institute the biggest
number of antidumping investigations at the moment. Both Canada and the USA are members of
the North American Free Trade Agreement. Though NAFTA is not legally binding for common
foreign trade policy, the member countries do co-ordinate their efforts in this area.
Canada’s acknowledgement might encourage the USA to make a similar decision, while joint
recognition by the EU, Canada and the USA would be a clear sign for other countries.
One can hardly split between politics and economy in
antidumping issues. Frequently, antidumping measures are taken against Ukraine to get rid
of competitors rather than to prove dumped imports. Therefore, foreign countries implement
protectionism, violating the WTO Rules that provide for compensatory measures.
Ukraine is becoming more experienced and Ukraine’s
representatives reach compromise with foreign countries. It is a process of coming
together; however, one would better refrain from anticipation of future bright success.