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Russia to put trade sanctions on imports of Ukraine's chocolate, coal, glass, says Reuters
10.07.2013 19:16 "Agro Perspectiva" (Kyiv) —
Russia plans to put trade sanctions on Ukraine, penalizing imports of chocolate, coal and glass in retaliation for a Ukrainian emergency import tax on cars, NRCU says referring to Reuters report.
As to report, Russia informed the World Trade Organization (WTO) that the Ukrainian car tax would hit Russian car exports worth $328 million, raising $36 million of tax. To offset this, Russia said it reserved the right to impose a duty of EUR 0.1 per kilogram of Ukrainian chocolate, 15 % on glass and 54 % on coal. According to the WTO regulations, its members affected by the car tax are allowed to levy an equivalent tax on Ukrainian imports. As reported, Turkey has reserved the right to impose a 23% import duty on Ukrainian walnuts from July 12 of this year in response to the restriction on import of cars imposed by Ukraine, although Kyiv intends to persuade Ankara to waive such sanctions. In a notice sent to members of the WTO on June 12, Ankara said that it would take such a step under Article 8.2 of the Safeguards Agreement of the organization, which allows the introduction of countervailing duties if the parties fail to reach agreement. According to Bloomberg BNA, this is the first case of the application of this article in the history of the WTO. The country plans to introduce the fee from July 12, 2013. Turkey said that Ukrainian walnuts worth $26.7 million were imported in 2012, which brings the total duties to $6.1 million, which fully corresponds to the amount of duties on imports of Turkish cars, which last year totaled $55 million. From April 14, 2013, Ukraine introduced special duties on imports of new passengers cars with engines from 1,000 to 1,500 cubic centimeters at a rate of 6.46%, and on cars with engines from 1,500 to 2,200 cubic centimeters at a rate of 12.95%, irrespective of the country of origin and export. The EU and a number of countries, including the United States and South Korea, have expressed their concern over this step.
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