Ukraine, EU sign deal on new steel quotas for 2005

Ukraine, EU sign deal on new steel quotas for 2005

Ukraine and the European Union (EU) on Friday signed an agreement on new steel import quotas for 2005 and 2006. The deal, signed in Brussels on July 29, 2005, allows Ukraine to ship 980'000 tons of steel to the EU in 2005. The quota will then be increased to 1'004' 500 tons in 2006. The agreement was signed despite the fact Ukraine retained its €30 per ton export duty on scrap. However, the EU has agreed to increase Ukraine's quota levels by as much as 43 percent if the country lowers its scrap export duty. Moreover, the deal stipulates that Ukraine will not introduce additional constraints on scrap exports. In line with the agreement, the quota division for 2005 is as follows: 348'000 tons of heavy plate; 150'000 tons of coils; 97'000 tons of other flat products; 125'000 tons of wire rods; 30'000 tons of semi-finished and profiles; and 230'000 tons of other long products. The quota division for 2006 is as follows: 356'700 tons of heavy plate; 153'750 tons of coils; 99'425 tons of other flat products; 128'125 tons of wire rods; 30'750 tons of semi-finished and profiles; and 235'750 tons of other long products.