Concerns Raised Against Trade Measures by Ukraine, Russia, Brazil, Japan, Indonesia and Nigeria, WTO Says
Concerns were raised over certain trade measures by Ukraine, Russia, Brazil, Japan, Indonesia and Nigeria during the Council for Trade in Goods meeting on July 11, the World Trade Organization (WTO) said. Japan expressed serious concern over the safeguard duties on automobiles that Ukraine imposed in April, saying that the duties seriously impacted Japanese exporters. Ukraine said the duties were in response to a 78 percent decrease in domestic auto production and a 50 percent decline in employment within the sector. Ukraine also said that the duty measures are temporary and are intended to help domestic producers adjust to global competition, the WTO said. The WTO reported that the European Union (EU), Australia, the Russian Federation and the U.S. raised additional concerns regarding Ukraine’s import quota on coking coal. However, Ukraine said this measure was also temporary and would end in December, according to the report. In regards to Ukraine’s Article XXVIII notification, the U.S. urged Ukraine to “heed the views of many WTO members to abandon its renegotiation of its bound tariffs, which Ukraine said should not be seen as a “protectionist measure,” the WTO said.
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The U.S. reiterated concerns about Russia’s recycling program while the EU voiced concern over the “recent surge” of Russian protectionist measures, the WTO reported. The EU is also concerned by the increase in measures against the EU under sanitary and phytosanitary measures, including the import ban on live animals being extended to other products, the WTO said.
The EU said Brazil’s use of indirect taxation and domestic content requirements to protect domestic industry. Brazil responded by saying that it provided sufficient information on its programs in its latest trade policy review. WTO reported that Brazil also said their government was trying to “rationalize Brazil’s tax system to promote and develop innovation and protect the environment.”
Japan’s “wood point stimulus programme” intends to boost the supply and use of domestic forest products, but the EU expressed concern that the program would only admit Japanese wood and exclude foreign wood. The WTO reported that Japan called the program “non-discriminatory” and only intends to “encourage the use of wood from forests that are increasing in volume.” Foreign suppliers are free to join the program.
The U.S. and EU addressed a number of trade restrictions in Indonesia affecting agriculture, energy and consumer goods, including import licensing restrictions and a new food law. According to the WTO, “such burdensome requirements have deterred European companies from exporting to Indonesia.” Other countries like Thailand have also experienced a decline in their food exports to Indonesia, the WTO said. However, Indonesia said its imports from Japan and other members continue to rise.
Other concerns included questions about Nigeria’s local content measures in oil and gas, and the Philippines’ request for a waiver relating to special treatment for rice. According to the WTO report, the Philippine’s agricultural safeguard expired in June of last year, but its urgent request for a waiver has made “concrete progress” and expects a breakthrough in October. More details on the July 11 Council for Trade Goods Meeting can be found (here).