The law on export duties on scrap complies with international obligations of Ukraine – experts

KIEV. June 26. UNN. The Ministry of economy appealed to the President of Ukraine with the recommendation to sign the Verkhovna Rada adopted the law on the prolongation of increased export duties on ferrous scrap in the amount of 30 euros per tonne. This law is in full compliance with international obligations of Ukraine, because it falls under article twenty-first the General agreement on tariffs and trade. This Savill the Chairman of the Verkhovna Rada Committee on industrial policy Victor Galasyuk, reports UNN.

Earlier in favor of its adoption has already been expressed by the Prime Minister of Ukraine Volodymyr Groysman.

According to him, the law was passed by Parliament in order to eliminate the critical shortage of raw materials for Ukrainian metallurgical plants, with the aim priority to ensure the needs of the defense industry, as well as enable the rebuilding of infrastructure.

“I hope that the position of the President is a statist, and he will sign the law of metallurgical and extend its validity for two years. Because, first, it meets the national interests of Ukraine. It not only eliminates a critical shortage of raw material scrap for the Ukrainian plants that not only meets the needs of the defense industry, but very importantly, this law is not allowed to steal jobs Ukrainian metallurgists abroad. It is possible to save more than 20,000 jobs in the mining and metallurgical complex. It increased 30 percent receipts of raw materials to metallurgical plants. Its effect on the budget is nearly half a billion a year, these revenues would not exist if the duty were raised. Moreover, despite the significant decrease in scrap exports in physical volume of state budget revenues from the export of this scrap also increased. That is in fact the law, he provided the raw materials of Ukrainian metallurgists, weapons and equipment of the Ukrainian army, work and wages, Ukrainians. And very importantly, this law applies not only to the industry, not just industry, it applies to every Ukrainian, because of export revenue depends on the stability of the hryvnia and the prices in the shops,” — said the MP.

Deputy General Director of “ArcelorMittal Krivoy Rog” Vladimir Tkachenko also believes that the President will sign important law.

“I think he will make the right decision. Moreover, this decision, which was initiated by the parliamentary Committee on industrial policy, supported by 260 votes of people’s deputies of Ukraine, and supported by the Ministry of economy of Ukraine, Ministry of economy and trade,” reminded V. Tkachenko.

Also V. Galasyuk reminded that the law fully complies with international obligations of Ukraine, because it falls under article twenty-first the General agreement on tariffs and trade, which is called “Exception safety reasons”. “According to this article, the country is in emergency conditions in which today, unfortunately, Ukraine has the right to implement temporary forced, but extremely important event,” — said the head of BP Committee.

He also reminded that China, for example, the duty on the export of scrap metal is 40%.

“It is almost two and a half times more than what we today temporarily installed in Ukraine. That is, the country protects its national security, its economic interests, jobs for its citizens” — summed up the MP.