Today, the U.S. Department of Commerce is expected to consider granting Ukraine market economy status. This decision would mean opening a "green street" for Ukrainian exporters to one of the largest markets in the world. "I am not an oracle to predict the decision, but all disagreements have been resolved," Economy Minister Arseniy Yatsenyuk told "DELO." Capricious Americans

The U.S. Department of Commerce had planned to adopt a decision on market status for Ukraine by January 23, but then the Americans decided to postpone consideration of this issue until February 16.

Already this year, Ukraine was given another encouraging signal – in January the U.S. revoked Ukraine's status as a priority country violating copyright. True, for now U.S. Ambassador to Ukraine John Herbst states that another postponement of the U.S. signing of a bilateral protocol with Ukraine is possible due to imposed restrictions on meat product imports. Now experts do not venture to predict how the U.S. Department of Commerce will behave.

As Deputy Economy Minister Valeriy Pyatnytskyy, who is participating in negotiations with the Americans, noted to "DELO," "the fact that they postponed granting market status is a purely technical problem related to final approvals at the U.S. Department of Commerce." According to the deputy minister, if the U.S. adopts a positive decision, this status for Ukraine's economy means the removal of all discriminatory restrictions against Ukrainian exporters in the U.S., including future ones, in the conduct of anti-dumping measures or the application of anti-dumping legislation. Launching an investigation against Ukraine from that moment becomes much more difficult, and if such investigations are launched again and again, the measures introduced will be non-discriminatory.

It is believed that in addition to improving Ukraine's image on the international arena, market economy country status (which in reality many countries grant to each other) in fact relates only to the conduct of anti-dumping cases against producers. Obtaining market status from the U.S. and EU is a precedent for adopting similar decisions in other regions of the world.

The anti-dumping nightmare

Almost 70% of anti-dumping investigations against Ukraine in the world are related to exports of metal products, 11% – chemicals, and 21% – all other types of products. More than 70% of the total number of restrictive measures are customs duties on Ukrainian goods, about 10% are quotas and obligations, and 8% are the establishment of minimum prices for exports of products from Ukraine.

"The absence of market status in the U.S. costs up to a hundred million dollars that our exporters could be earning," notes the deputy economy minister.

The most sensitive restrictions for our exporters in the U.S. are anti-dumping measures on metallurgy and chemicals, the size of the anti-dumping margin and import duties on which are very high and, in essence, close the American market to exporters. Currently, restrictions in the U.S. for Ukraine concern such products as carbamide, rebar, ferrosilicomanganese, ammonium nitrate, and hot-rolled steel.

Until now, Ukrainian companies already operating in the American market experience discrimination at practically every step. If they try to increase sales volumes, anti-dumping investigations are opened against them. Many Ukrainian enterprises simply did not enter the European market for fear of anti-dumping investigations.

Skepticism of the real sector

Representatives of the real sector treat the possible obtaining of market status from the U.S. without particular enthusiasm. "No anti-dumping measures are applied against our plant personally," Valeriy Gobatko, general director of the Odesa Port Plant, noted to "DELO," "the share of our exports, as with many Ukrainian chemical enterprises, to the American market is small, and frankly speaking, today's volumes are quite enough for us, and therefore this decision is not of fundamental importance to us."

A representative of the Mariupol Metallurgical Plant named after Illich noted to "DELO" that if market status is granted, for now it will have more of an image effect for the country and only in the long term will open the American market to metallurgists. According to him, "in the U.S. a whole series of anti-dumping acts is already in effect, American producers are reliably protected from imports and they won't let us in under any circumstances, so both until now and in the future the share of the American market in our exports will be very small."

Market status: attempts at acquisition In 1997, Ukraine sent an official request to the U.S. Department of Commerce for the granting of market economy country status.

The U.S. Department of Commerce found the Ukrainian side's arguments unconvincing.

In 1999, the U.S. began mass launching of anti-dumping investigations against Ukrainian exporters.

In October 2004, Ukraine and the U.S. initialed an addition to the agreement on the termination of the anti-dumping investigation regarding imports of cut flat-rolled products.

In January 2006, the U.S. extended consideration of granting Ukraine market economy country status until February 16.

Printed in the newspaper "DELO" No. 79 of February 16, 2006.