Ukraine to Forbid Car Imports image

Ukraine may take the decision to apply emergency tariffs to car imports, decision which would not be accepted under World Trade Organization rules.

Ukraine, which is already under criticism for the recent jailing of former Prime Minister Yulia Tymoshenko after a politically motivated trial, will further go under international pressure by applying new rules to restrict car imports.

The WTO rules say that countries may resort to emergency import restrictions called “safeguard measures”, only to prevent a certain industry seriously affected by a sudden wave of imports. Before applying the “safeguard measures”, a “safeguard investigation” is undergone to determine if it would be appropriate.

On April 2011 Japan was informed by the Ukraine’s Economy Ministry that after the investigation it was decided that the Interdepartmental Commission of Foreign Trade can apply safeguard measures to forbid imports of motor cars and that a final decision will be made by the end of May.

Under the WTO rules, Ukraine had to face an unexpected, sharp and significant boost in imports in order to apply safeguard measures. Contrary to this, the country saw a sharp decrease in imports from 376,000 units in 2008 to 107,000 units in 2010.