EU pipe tariffs to agitate Ukraine

By Andrew Beatty

Date: 11/05/06

The EU will today (11 May) discuss imposing punitive measures against Ukrainian imports worth billions of euros in a trade dispute that is straining ties between Kiev and Brussels.

EU member states are to discuss tariffs of up to 30% on Ukraine's pipe exports, one of the countries most lucrative manufactured products.

The industry is estimated to be worth 1.5 billion euro each year to the Ukrainian economy.

At the time of going to press it was unclear whether a decision would be taken today or whether member states would wait until later this month.

Ahead of the meeting Commission officials said they expected a decision before the end of May.

The Commission has refused to comment on the case because it is still the subject of a confidential anti- dumping investigation.

But 11 types of product produced are likely to be the subject of tariffs, or revised tariffs of 25-30%. Four firms are under investigation: Dniepropetrovsky Pipe Plant, Nikopolsky Seamless Pipe Plant, Nizhnedneprovsky Tube Rolling Plant and UTiST.

EU producers have alleged that Ukrainian firms colluded to keep prices artificially low in order to win EU-market share.

The association of Ukrainian pipe producers, UkrTuboProm, which represents firms employing almost 35,000 people, including Ukraine's second largest firm Interpipe, alleges that Ukraine is being unfairly treated in comparison with other producers in Romania and Russia.

The issue is politically sensitive with many of the firms located in eastern Ukraine in the Donetsk and Dnipropetrovsk regions.

These two predominantly Russian-speaking areas have traditionally been hostile to President Viktor Yushchenko's pro-EU Our Ukraine coalition. Ukrainian Prime Minister Yuriy Yekhanurov wrote last week to Commission President José Manuel Barroso to express his concern about the measures.

Article reports on a trade dispute between the European Union and Ukraine on allegations of dumping in the pipe-manufacturing sector. The European Commission was leading an anti-dumping investigation and it was to be discussed at EU-level on 11 May 2006 whether punitive measures should be taken against Ukrainian imports.