GAFTA expressed its concern about behavior of Ukraine on the grain market
4 November, 2010
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The Grain and Feed Trade Association (GAFTA) paid attention of the World Trade Organization and the European Union to undermining of the world export wheat trade on the part of Ukraine that has recently created formal and informal barriers related to the grain trade. The technical trade barriers set up by Ukraine impair the rights of the trade partners of Ukraine and investors.
Any limitations and bans on export are illegal and damage the free crops movement in the world trade thus leading to groundless increase in prices in the world goods markets.
Slowdown in the market economy being practiced by the government may create some disturbances in the whole world market. Limitations and bans on export contradict the aims of the WTO and modern tendencies in customs practice, in particular, customs clearance of the agricultural products’ such is the essence of the speech made by the major official of GAFTA.
Indeed, the recent actions of the Ukrainian customs to define the grain quality really perplex. Is that not clear that the issue on whether the grain is feed or food is subject to the commercial arrangements between the business entities, namely, between exporters and importers?
Surely, one might suppose that the Ukrainian customs protected the national interests to avoid dishonest avowal of the feed grain instead of the food grain. However, Ukrainian bans on grain export did really demonstrate the true intentions of the authorities.
Consultant of International Law Offices, Vyacheslav Lebedev
