Ukraine to lower scrap export duty after WTO entry

The Ukrainian government has agreed to lower its export duty on scrap of ferrous metals after the country's accession to the World Trade Organization (WTO). The Ukrainian Ministry of Economy has prepared a draft bill on ’Including Changes in the Law on Export Duty on Waste and Scrap of Ferrous Metals', which the country needs to pass as a part of its WTO accession process. According to the document, Ukraine agrees to gradually decrease scrap export duty from the current Euro 30 per metric ton to Euro 10 per metric ton over the six-year period starting from the moment of the country's accession to the WTO. The acceptance of the bill will enable Ukraine to accelerate its entry to the WTO as well as create favorable pre-conditions in resolving issues relating to the trade in steel products between Ukraine and the European Union (EU). Ukrainian steel exporters had long been pushing for lower scrap export duties. However, it was only when high export duties became an obstacle to the country's WTO accession process that the government moved towards agreement on a reduction. Ukraine has been pursuing WTO membership for the last 13 years. While progress on its application has been slow, momentum picked up in 2004 and 2005. Government officials have stated that they are hoping to achieve membership by the end of 2006.