DEPARTMENT OF PRODUCTION OF UKRAINE: EXTREMELY POWER SUPPLY - A CASE OF SOME EXTREMELY HANDS
Keep your hand on the pulse, not just for the sake of justice, but for the sake of life. Today, this applies to all areas of our state, in particular the agrarian sector. For the second year in a row, the silent struggle for the market of mineral fertilizers continues. And it is good, if it was a natural competition of domestic producers, aimed only at the economic growth of Ukraine. But we again and again spend our forces on an external attack.
The realities dictate the not very attractive picture of dumping in relation to the import of nitrogen fertilizers to Ukraine, which mostly originate from the Russian Federation. One "offensive" is difficult to conquer the market and it would be very primitive. Therefore, in December 2016, the Ministry of Economic Development and Trade officially recognizes that anti-dumping measures on the above-mentioned nitrogen fertilizers will indeed "be in line with national interests." The decision of 27.12.2016 of the Interdepartmental Commission for International Trade (MICM) under the Ministry of Economic Development, which should end the Russian expansion to the Ukrainian market of nitrogen fertilizers. But already in February 2017, the commission made a retreat and made a decision that "national interests demand an end to anti-dumping measures", which seems more like a verdict for national producers of nitrogen fertilizers.
Prehistory. The impetus for an open struggle was the appeal of three domestic producers of nitrogen fertilizers (DRs) to the Ministry of Economic Development of Ukraine on April 30, 2015, to violate the anti-dumping proceeding on imports of DR originating in the Russian Federation - urea and urea ammonia mixture (CAS). On June 23, 2015, the Interdepartmental Commission for International Trade adopted a Decision "On Infringement and Antidumping Investigation", No.АД-331/2015 / 4442-06, which was twice extended for a period of 15 and 18 months, which is unprecedented in the WTO practice of consideration Anti-dumping cases.
In practice, we already have four seed companies, which went under the expansion of import manufacturers of AD. Quote from the antidumping report of the Ministry of Economic Development and Trade. "The study of recent trends in imports shows that already in 2015, the volume of Russian exports increased by 45.8%, and in the first half of 2016 - by 40.5%.", As well as: "Because of the price struggle against dumping imports from the Russian Federation A national commodity producer, in order to keep a share on the domestic market of Ukraine, was forced to sell the goods below its cost. As a result, an increase in the size of losses is observed throughout the research period, and for 2012-2014 it is 778.3%. " The conclusions are inevitable - we not only lose profits, the real threat of bankruptcy of domestic commodity producers and the destruction of the entire industry for the production of AD in Ukraine is looming. We become addicted.
While companies from the Russian Federation confidently become monopolists in the domestic market, the stomp stop of the last chemical giants eloquently is ignored. In March 2017, in the midst of preparations for sowing, the two largest Ukrainian enterprises producing nitrogen are finally stopped - in Rivne and Cherkasy. Complete capitulation. And in 2013 Ukraine was one of the ten largest global exporters of BP and received 8% of GDP.
On April 20, the expert council of the National Committee for Industrial Development informed Prime Minister Groisman that the working group on support and development of the domestic mineral fertilizer market thoroughly examined the issue of both the economic effect and the losses from the decisions of the ICCM on the cessation of anti-dumping measures on imports from Russia AU and recommends the Ministry of Economic Development to initiate the consideration of the MKMT on the following issues:
"Restoring from May 1, 2017 the anti-dumping measures on the import of urea and UCS in accordance with the decision of the ICMT of 27.12.2016" "Recalculation by May 15, 2017 in the direction of an increase of up to 40% of the anti-dumping duty on dumped imports of Urea and UCS for products Originated from the Russian Federation. "
СWe hope for the best, but at the same time hold your hand on the pulse. Lack of guarantees, but the presence of hope and optimism is all that you can do in anticipation. Earlier in the autumn, the sowing, and that it would turn into serious consequences for the economic and food security of Ukraine, urgent adoption of the above-mentioned decisions and the launch of the Rivne and Cherkassy Azot needed, as Prime Minister Groisman so loudly assured. If there is a question of protecting national interests, we must not forget what kind of state it is talking about. Our state is Ukraine.
27 may, 2017