Deputy Minister of Economic Development, Trade and Agriculture, Trade Representative of Ukraine Taras Kachka announced on his facebook page that the arbitration panel recognized that Ukraine can and has the right to restrict forest exports under certain circumstances.
“The forest arbitration has ruled to ban forest exports. The arbitrators acknowledged that Ukraine can and has the right to restrict forest exports under certain circumstances. Thus, the existing export ban in 2005 was recognized by the court as completely legal. At the same time, the arbitrators recognized that the 2015 ban should be adjusted to take into account Ukraine’s full right to regulate this area of activity in accordance with Articles 290 and 293 of the Association Agreement. Corrective measures should be taken in cooperation with the EU, “Taras Kachka wrote.
He noted that predatory demand from EU companies is a driver of unbalanced forest exports and poses a threat to the Carpathian region, said Inger Andersen, executive director of the UN Environment Program.
“Surprisingly, the main reason why we could not fully defend the legitimacy of the 2015 export ban was that the authors of this ban were too active in writing about preferences for national producers and not about forest protection. Therefore, dear deputies, be careful in explaining your legislative initiatives.
The decision of the arbitrators gives us a wide freedom of choice of measures to implement the decision. The cornerstone of its implementation will be the creation of a normal market within Ukraine. Therefore, the first step should be the approval of the Law of Ukraine “On the Wood Market” 4197-1,” Kachka added.
According to him, they should create a civilized market based on a successful government experiment on the sale of timber at auctions.
“The next step is clear regulation of the bilateral protocol on forest trade with the EU. And then an analysis of whether we need to lift the export ban altogether or simply predict that the EU will be subject to a personal regime. One way or another, we have a fairly balanced decision of the arbitrators and the opportunity to formulate a forest management policy at our own discretion. Thank you to everyone who joined in forming the legal position, “said the trade envoy.
It will be recalled that on April 9, 2015, the Verkhovna Rada passed a law banning the export of timber and lumber in raw form (roundwood) for ten years, while the ban on the export of timber (except pine) was introduced on November 1, 2015, and wood species – from January 1, 2017.
On January 15, 2019, the EU requested consultations with Ukraine on a temporary ban on the export of raw wood. Consultations were held on February 7, 2019, but the parties did not reach a mutually agreed solution.
On June 20, 2019, the EU initiated a dispute resolution procedure through arbitration and sent a request for the establishment of an Arbitration Group. The parties agreed to establish an Arbitration Group in the above composition on January 28, 2020.