Grain Exporters

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Grain Exporters

Grain Exporters

During several recent weeks, the world is waiting for the Ukrainian Government making the final decision regarding imposition (or not imposition) of grain export limitations. Till the certain moment representatives of the authorities, the non-governmental organizations and market participants discussed the issue. However, when export quotas decisions appeared on the paper, the international grain organizations also started discussing the issue. (Sullivan, 2009, 449)

On August 17, the Ministry of Economy of Ukraine announced the project of the Cabinet of Ministries Decree "On confirmation of quota volumes for separate varieties of agricultural products, which export trading to be subject to licensing till December 31, 2010, and the order of issuance of licenses". At the same time as APK Inform wrote previously, the offered document is absolutely conflicting with the variant which the Government offered earlier. First of all, the differences concerned the terms of export limitations imposition, the second was the quota volumes. On several occasions the non-governmental organizations appealed to the country authorities to review these items and take the decision taking into account their offers, in particular to enforce grains quotas from September 15, and quotas volumes to total 5 mln tonnes. (Sullivan, 2009, 449)

Finally, on August 18, the Government did not take the decision regarding grains export quotas imposition and lied over handling of the issue for the next meeting on August 25.

We should also note that the Government still did not settle grains fate, which was loaded at the vessels, which belong to the foreign export companies, and which the Customs Service of Ukraine delayed in the Ukrainian ports, and also grains stocking in the port elevators.

Later, the reaction of the world profile organizations followed it. GAFTA, the American Chamber of Trade in Ukraine, and the American-Ukrainian Business Council (USUBC) made their own announcement regarding the situation with grains export limitations in Ukraine.

In particular, GAFTA announced that it is worried about the course of events in Ukraine during the recent period. The Association noted that the technical trade barriers, which the Ukrainian authorities settled, essentially reduce the rights of the investors and trade partners of Ukraine, arouse concern regarding the country obligations fulfillment at the WTO and agreements regarding the cooperation with the EU. At the same time, any similar limitations are not conciliated with the law, and are rather destructive and discourage the trade, causing losses of large-scale exporters and importers.

Besides, according to GAFTA, when there are some limitations on the market, which the Government settles, it shows the essential impact at the international trade. According to the announcement, the barriers which discourage the traders exports, are conflicting with the WTO standards, and the recent changes of the procedure of the grains cargoes customs surveillance almost stopped the free agricultural products flow from Ukraine.

Wheat quality should be conciliated with the exporters and importers for international trade, the products should be tested in the loading ports by the independent ship surveyors for the contract specification match ...
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