Ukraine claims Armenia continues to violate WTO norms

24.01.2011 | 09:56 Home / News / News /

Yerevan/Mediamax/. Ukraine claims that Armenia continues to violate WTO norms by imposing a license on vodka import at a price twice as high as on local production.

Mediamax reports that the “Kommersant-Ukraine” newspaper quotes the representative of the Ministry of Economic Development and Trade of Ukraine, Roman Buga as saying that “after reaching a compromise with Armenia, that rejected discrimination in taxation of cigarettes and alcoholic production from Ukraine, the Ukrainian producers faced a new problem.”

In spring 2010, Ukraine began consultations with Armenia on excise tax rates for the import of cigarettes and alcohol to this country. As a result, beginning January 1, 2011, Armenia took a commitment to reduce rates for Ukrainian goods up to the excise level on domestic goods. However, Roman Buga noted, simultaneously Armenia reviewed the licensing principles.

“We expect our exporters to confirm that this norm came into effect, after which, perhaps, we will start a new examination within the framework of the WTO,” the representative of the Ukrainian Ministry of Economic Development and Trade said.

“The importers should first of all pay for the license, which considerably affects the prime cost of the imported production, transfers it to a new price segment, thus limiting the consumer demand,” “Kommersant-Ukraine” was told in the press service of “Nemiroff” company.

The article also says that the list of Ukraine’s claims towards Armenia may grow in the future. Particularly, the newspaper reads, the Armenian “Alex Grig” company illegally produces vodka under famous Ukrainian and Russian trademarks and sells it at prices which are twice or thrice lower than the original production.

Last year, the State Commission for Protection of the Economic Competition of Armenia fined “Alex Grig” company of $2,5mln for the production of vodka under twin-trademarks of famous Ukrainian brands, particularly “Khortitsa”, “Medoff”, “Prime” and “Khlebniy Dar”.

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