On 28 April 2011 the President of Ukraine vetoed the Law on Amending Certain Laws of Ukraine for providing support of agricultural development (respective the Draft Law No. 8324 was registered in the Parliament on 1 April) which was adopted by the Parliament of Ukraine on 7 April.
The Law if approved by the President would change a number of laws regulating grain market and foreign economic activities empowering the Cabinet of Ministers of Ukraine to take decisions on export and import quotas distribution for grain and grain processing products by means of selling quotas at the auctions.
Taking into account that this legislative initiative would provide for additional restrictions of grain export the EBA Grain and Oilseed Committee decided to address the President asking him to veto the Draft Law. Within the letter addressed to the President EBA outlined that there was no objective reasons for imposing such restrictions and the mechanism proposed by the Draft Law in terms of quota distribution was not in line General Agreement on Tariffs and Trade as of 1994 and the WTO Agreement on import licensing.
Thus as a result of common efforts from the business community’s side including position paper elaborated by the EBA Grain & Oilseed Committee the President returned the Draft Law back to the Parliament and suggested rejecting this legislative initiative at all.
Moreover on 5 May the Resolution of the Cabinet of Ministers of Ukraine No. 463 about decision taken by the Cabinet of Ministers of Ukraine at the meeting on 27 April to abolish export quotas for corn was published. We consider it as a positive step towards free export of grain and oilseed products, though the EBA Grain & Oilseed Committee will lobby further for free export as an ultimate goal.
We are happy to share these first achievements of the recently established EBA Grain & Oilseed Committee with you and keep you informed on our further developments!