WT/REG245/1  
 
8 February 2016  
(16-0832)  Page: 1/2  
Committee on Regional Trade Agreements  Original: English  
 
UKRAINE-AZERBAIJAN FREE TRADE AGREEMENT  
QUESTIONS AND REPLIES TO THE IMPLEMENTATION REPORT1 
 The following communication, dated 5 February 2016, is being circulated at the request of 
the delegation of Ukraine. 
 
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  This document reproduces the questions addr essed to Ukraine and the responses submitted. 
 
 
Questions from the delegation of the European Union 
 
1.1.  The EU would like to receive the fo llowing clarifications on certain aspects 
presented in the Implementation  Report under discussion:  
 First, as described under paragraph 2.4.  of the report, under the agreement the 
Parties should avoid the introduction of qu antitative restrictions in mutual trade. 
However, quantitative restrictions could be imposed unilaterally on a temporary basis in 
certain cases.  
 According to Articles 3 and 4 of the Free Tr ade Agreement between Ukraine and Azerbaijan, 
quantitative restrictions could be imposed unilaterally on a temporary basis in the following cases: 
 
 significant shortage of a good at domestic market – until stabilization at domestic 
market; 
 significant deficit of balance of payments – until stabilization of balance of payments; 
 huge expansion of imports to the Party market, which damage or threaten domestic 
producers of similar goods or close substitutes; 
 as it is regulated by Agreement on re-exports of goods and the procedure for issuing 
permits for re-exports. 
 Moreover, with regard to Articles XI, XII and XX of the GATT it is possible to implement 
quantitative restrictions regarding import of goods in mutual trade. 
  Since 2012 Ukraine has applied export quotas on some irreplaceable natural resources, in 
particular, on natural gas of the Ukrainian origin, and on slag, ash and residues containing copper 
and zinc. These quantitative restrictions are imposed because of shortage of these goods at domestic market. 
 
 Import quotas on selected types of coal and coke were introduced in Ukraine in 2013, because of increased amounts of imported coal and coke, which threatened domestic production and posed a serious threat to the environment. 
                                               
1 WT/REG245/R/I, 13 July 2015. WT/REG245/1 
 
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  1.2.  Under paragraph 2.13 the parties clarify that export restrictions have been applied 
for the export of selected grains sinc e 2012. Could the Parties confirm that the 
restrictions described under paragraph 2.13 ar e the only ones applied? And/or clarify 
whether other restrictions have been applied?  Should this be the case, could the Parties 
indicate the reasons? 
 As it was indicated in paragraph 2.13 of the Ukraine-Azerbaijan implementation report, 
restrictions for exports of selected grains, mostly wheat and maize, are the only ones applied in 
2012. Any restrictions for exports of selected grains, mostly wheat and maize, are not in force any 
more.  1.3.  With reference to paragraph 4.19, co uld the Parties clarify whether they have 
applied any measure to protect their legitimate  objectives? Should it be the case, could 
the Parties clarify under which circumstances? 
 Ukraine has applied export quotas on selected types of precious metals and stones since 
1992. 
  Ukraine introduced balance-of-payments meas ures irrespective of existing free trade 
agreements. 
  On 28 December 2014 Law of Ukraine «On measures concerning stabilization of the balance of p ayme nts  of U kraine  i n c omp l ianc e  w ith Art i cle XII of the General Agreement on Tariffs and 
Trade 1994» No. 73-VIII and the Law of Ukraine «On Amending the Customs Code of Ukraine 
(concerning stabilization of the balance of paymen ts)» No. 74-VIII entered into force. Pursuant to 
these Laws, Ukraine introduced a temporary import surcharge of 10% for agricultural goods and 
5% for non-agricultural goods, except essential goods. 
  http://zakon4.rada.gov.ua/laws/show/73-19  
 http://zakon2.rada.gov.ua/laws/show/74-19  
 
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