GENEVA: Auto giant Japan yesterday challenged Ukraine over what it claims are unfair car import duties imposed by the ex-Soviet republic, the World Trade Organisation said.
In a statement, the WTO said that Tokyo had filed a formal request for consultations with Kiev, which is the first step in the trade dispute settlement process overseen by the Geneva-based body.
The WTO said that Japan took issue with Ukraine’s decision in April 2012 to deploy what are known in trade jargon as safeguard measures, with import duties of up to almost 13 percent on certain vehicles.
Members of the 159-nation WTO are allowed to use temporary safeguard measures to protect a specific industry from an increase in imports of any product which is causing, or risks causing, serious harm to the industry.
But Japan maintains that Ukraine — which joined the WTO in 2008 — did not play by the rules because it failed to notify the trade body about its measures, leaving no time for talks with fellow members.
It also claims that Ukraine failed justify the imposition of the safeguard measures, left them in place for too long, and applied them in a manner which was out of proportion to the impact of imports on the local auto industry.
A request for consultations at the WTO is generally the first step towards seeking the establishment of an panel of independent experts to rule on a dispute.
Disputes at the WTO are often highly complex and technical, and can last for several years.
In the event that the WTO’s disputes settlement body finds in favour of a plaintiff, it has the power to authorise retaliatory trade measures against a country if it fails to fall into line.
AFP
