The expert of the decision of arbitration of the WTO for ammonium nitrate: the Ukrainians will have to buy expensive foreign fertilizers

30/05/2018 06:12 - 529 Views

The decision of the WTO Arbitration on the recognition of the fact of the violations by Ukraine in the antidumping investigation on ammonium nitrate from Russia may force the Ukrainian farmers to buy more expensive fertilizer abroad.

Such opinion to the correspondent of ГолосUA expressed political scientist Oleg Saakyan.

According to experts, as a rule, decisions made in the course of arbitration proceedings, forced to re-investigate the selected issue. In this case, it will complicate the already established processes for the delivery of ammonium nitrate from Russia to Ukraine.

“We now find ourselves in the situation of a certain time, when the results of the investigation will be cancelled in fact, and, apparently, will require additional investigation to bring the situation to a normal market. On the one hand. On the other hand, the number of companies that produced ammonium nitrate in 2000-ies was removed from Ukraine in the near European countries, in order to deliver this fertilizer to the European market. And those that were produced on the territory of Ukraine, it was a “styrene” eskimoski, respectively, it remained in the occupied territories and he stopped,” – said the expert.

According to him, various political and economic processes in Ukraine and Russia has created a shortage of ammonium fertilizers, which is well feel Ukrainian farmers

“Note that the ammonia, which took place on the territories of Russia, is also stopped. Accordingly, we do have a shortage of ammonium fertilizers in the market and the only market where we buy them in large quantities, was the Russian. And for a very long time raised the issue of banning the General use of these fertilizers and repeatedly this caused discussion in the agricultural lobby, among farmers, as this issue will seriously affect the competitiveness of Ukrainian goods. If we lose this source of raw material, in this case, we have to seek new markets the purchase of fertilizers that will be more expensive, if they are European or Asian manufacturers. Accordingly, the more expensive the final product, and Ukrainian products become less competitive,” he concluded.

Recall that in may 2018 the Arbitration of the world trade organization (WTO) has recognized violations of Ukraine in the antidumping investigation of ammonium nitrate originating from Russia. This is referred to in the article “ammonia Poisoning: Ukraine lost to Russia in WTO dispute”, reports pack.

“The text of the decision is already prepared; it is expected that it will be announced in the near future,” the article says. According to sources, EuroPride in government, the WTO Ukrainian side has sent the preliminary text of the decision, but before the official publication, which is expected in the coming weeks, the parties are forbidden to comment on the case.

“WTO demands an end to the violations. This means that we need to hold a new anti-dumping investigation, and at the time of the meeting are not stopping the effect of protective duties. Very possible that after a new investigation taking into account the comments of WTO, will be able to prove the fact of dumping by Russia”, – said the interlocutor of EuroPride.

Earlier it became known that according to the survey, 78.9% of Ukrainian farmers opposed the introduction of anti-dumping duties on Russian fertilizers, and 79.2% did not support the idea of banning the import of all Russian mineral fertilizers. This was during a discussion of the topic announced by the Chairman of the Ukrainian Agrarian Rada Andriy Dykun. “The survey showed that Ukrainian agricultural enterprises are not willing to limit supply of fertilizers from abroad. This is due, in particular, with the fact that Ukrainian chemical plants are unable to produce fertilizers at an affordable price – today, the cost of Ukrainian fertilizers exceeds world prices by 40-50%”, – he said.
Source: Siv Post
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