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The Verkhovna Rada of Ukraine is recommended to adopt the localization law on second reading. The European Union previously clearly stated that this bill is contrary to the Association Agreement with the EU.
This is reported by the information department of the BP apparatus.
This decision was made by the Economic Development Committee on the corresponding bill No. 3739.
The law temporarily proposes, as of January 1, 2021 for a period of ten years, to establish the details of the procurement procedures for individual goods. A list of products is determined for which the use of localization requirements becomes mandatory when making public procurement.
Procurement items can participate in public procurement only if the degree of localization of their production in Ukraine exceeds or equals the corresponding degree of localization of their production.
“Based on the results of the discussion, the committee recommends that the Verkhovna Rada adopt the bill at second reading and generally with technical and legal processing,” the statement said.
It is worth emphasizing that in the AC with the European Union there is a separate chapter on public procurement. One of the principles is non-discrimination. Therefore, the description of the works, goods and services must not contain a specific place of origin (except when the object of the contract justifies it) and the conditions for the establishment of bidders in the same country as the client.
We will recall, previously, that the Ambassador of the European Union in Ukraine, Matti Maasikas, hoped that the localization law would not be stopped, but that it would be completely forgotten.
He stressed that the text of the bill goes against the Association Agreement, against the general agreement on preferences of the WTO and other international obligations of Ukraine.
As RBC-Ukraine wrote, in late July, the Rada adopted as a basis the bill No. 3739 on localization to support the construction of domestic machinery.
Even before the examination of the law at first reading, the EU delegation in Ukraine expressed great concern about this project.
The EU cautioned that this not only undermines the fundamental principles of equal treatment and non-discrimination, but also, given the degree of localization required in the bill (up to 60%), de facto deprives foreign products of the opportunity to participate in hiring in these areas.
Later, Prime Minister Denis Shmygal admitted that the localization bill adopted contradicts the Association Agreement with the EU. He noted that the law must be improved to meet obligations to the EU.
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