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Ukrainian government may reconsider PE and PVC import duties

September 14/2011

(MRC) -- Ukrainian Government initiated reconsideration of its WTO membership conditions in order to increase import duties on certain groups of goods. Polyethylene and PVC may allegedly enter the list, according to MRC analysts.

By the end of the year Ukrainian government plans to initiate talks about changing Ukraine"s tariff obligations made on joining WTO. On September 8, representatives of the Federation of Employers, as well as a number of industry associations, asked the government to begin negotiations with WTO to reconsider tariff rates. In particular, they proposed to raise import duties on pork, raw sugar, phosphate fertilizers, cars, etc.

According to MRC analyst, Sergey Karaychentsev, HDPE, PVC-S as well as other polymer products can enter the list of goods under import duties changes. Economically well grounded level of import duties changes can make 6.5%, since this is in agreement with WTO rules.

Annual capacity of the only Ukrainian producer of these polymers - Karpatneftechem (Kalush, Ivano-Frankivsk region), is 100 KT of high-density polyethylene and 300 KT of suspension PVC. In 2010, Ukrainian market capacity of high-density polyethylene made 130 KT, and PVC-S Ц 125 KT.

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