Ukraine defended timber export ban in arbitration court | Economy



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The arbitration panel ruled in a dispute between Ukraine and the European Union over a temporary ban on the export of Ukrainian timber.

As the Deputy Minister of Economic Development, Trade and Agriculture – Trade Representative of Ukraine Taras Kachka said on Facebook, the export ban in force in 2005 was recognized by the court as fully legitimate.

“The referees admitted that Ukraine can and has the right to restrict the export of wood under certain circumstances, “he wrote.

At the same time, according to the decision, the 2015 ban should be adjusted taking into account Ukraine’s full right to regulate this field of activity in accordance with Articles 290 and 293 of the Association Agreement with the EU.

“Adjustment measures need to be implemented in cooperation with the EU. Which is understandable as predatory demand from EU companies is the engine of unbalanced timber exports … and represents a threat to the Carpathian region“, – said Kachka.

In his opinion, Ukraine could not fully defend the legitimacy of the 2015 export ban due to the fact that the authors of this ban wrote too actively about the preferences of domestic producers, and not about forest protection.

The Trade Representative of Ukraine added that the cornerstone of the implementation of the arbitration award will be the creation of a normal market within Ukraine.

“So the first step should be the adoption of the Law of Ukraine” On the Wood Market “No. 4197-1. It should create a civilized market based on a successful government experiment. for sale of wood at auctions“, – summed up the official.

In turn, the European Commission said that the Ukrainian ban on exporting all unprocessed wood is incompatible with the Association Agreement, as it does not aim to protect the environment or combat the exploitation of natural resources.

“Therefore, Ukraine is expected to lift the export ban as soon as possible,” the statement said.

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As OBOZREVATEL reported:

  • In April 2015, the Verkhovna Rada adopted a law that banned the export of raw wood for 10 years. The moratorium on the export of timber species other than pine entered into force on November 1, 2015.

  • In mid-June 2018, then-Prime Minister Vladimir Groisman publicly announced a massive fight against wood smuggling. Then the head of government announced the criminals’ main schemes, promising to break them.

  • Two weeks later, the Verkhovna Rada also joined the fight, supporting bill №5495, which provides severe penalties for the export of roundwood from Ukraine. 234 deputies voted in favor of the document at second reading and in total.

  • In 2019, Taras Kachka announced that Ukraine is ready to reform the forestry sector to the extent that it lifts the moratorium on the export of roundwood.

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