Ukraine: The Cabinet Of Ministers Of Ukraine Has Approved The Regulation Of Protection Of Ukraine's Rights And Interests In Trade And Economic Field Within The Framework Of The World Trade Organization
During the meeting of the Cabinet of Ministers of Ukraine on 1
June 2016, the Regulation of Protection of Ukraine's Rights and
Interests in Trade and Economic Field within the Framework of the
World Trade Organization (the "WTO") was
approved (the "Regulation").
The Regulation defines inter alia the rules and procedures on
protection of the rights and interests of Ukrainian companies in
the framework of the WTO dispute settlement throughout all stages:
starting from the stage of consultations to the stage of
implementation of the recommendations or rulings of the WTO dispute
settlement body (the "WTO DSB"). The
stages of the WTO dispute settlement are outlined in the scheme
It shall be noted that the Regulation expressly provides for the
right of Ukrainian companies to apply to the Ministry of Economic
Development and Trade of Ukraine (the
"Ministry") in case any WTO member
violates the Agreements of the WTO Trading System. In particular,
the interested bodies and organizations (including the public
authorities, the enterprises, institutions and organizations
irrespectively of their form of ownership, as well as the
representatives thereof) may submit to the Ministry the statement
outlining the circumstances of identified trade restrictions. If
the Ministry considers that there is a violation of the WTO
Agreements, it takes the decision to establish the
interdepartmental working group, which shall tackle such issues as
immediate initiation and maintenance of a dispute. It shall be
stressed that the Regulation directly provides for the possibility
of affected Ukrainian companies to actively participate in the
relevant procedure. In case there are no grounds to believe that
the measures taken by another WTO Member violate the WTO
Agreements, the relevant applicant shall be notified within 30 days
after the application is registered.
In addition, the state bodies and foreign diplomatic missions of
Ukraine shall monitor the trade barriers applied by the WTO members
with respect to Ukraine. Having the relevant violations been
detected, the Ministry shall be notified within five business days
in order to initiate subsequently the relevant procedures and
address the violations.
Accordingly, the Regulation is of great practical importance for
business. It not only removes the barriers relating to the
protection of domestic producers from trade restrictions under the
WTO system, but also regulates the interaction between the
government and business as well as guarantees the confidentiality
with respect to the usage of information provided by business in
the scopes of such procedures.
Just to remind: in the 20 years since the WTO was established,
more than 500 disputes have been brought to the WTO. Moreover,
according to the statistics, the average dispute covers 162 claims
challenging 22 restrictive measures. At the moment, 102 of 162 WTO
Members (63%) have participated in the WTO dispute settlement
system. A large number of disputes resolved under the auspices the
WTO as well as the active position of the states are caused by
significant business interest behind each WTO dispute.
The Sayenko Kharenko International Trade Practice actively
participated in the development of the Regulation in the scopes of
the American Chamber of Commerce Working Group on External Trade
Issues. Based on the experience in the WTO dispute settlement, the
lawyers of Sayenko Kharenko provided their practical
recommendations as well as shared best practices on cooperation of
government with business in other countries (in particular, Brazil,
the USA and the EU).
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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