November 2, 2010

Ukrainian feed trade group stand against grain export quotas

The Grain and Feed Trade Association (GAFTA) is against the decision of the Ukrainian authorities to impose grain export quotas, because it comes in conflict with the obligations of Ukraine to the WTO, stated the letter.

GAFTA stated in a letter to the President and the Prime-Minister of Ukraine that it is very worried about the situation that the Ukrainian grain market still stays non-forecasted and unclean.

Besides, according to the GAFTA opinion, Ukrainian grain export licensing and quotas regime was imposed too early, without providing at least two weeks of transitional period to the participants, which would allow to them to finish the started loading procedures and ask for quotas providing for the following grains parties shipping. It would allow to traders to discharge own obligations to the trade partners.

Fast imposition of the export licensing and quotas blocked grain exports already the second time during the current year, noted the Association. The vessels and rail-cars are full of grains, which should be exported, but export trading is impossible without quotas accepting, emphasised the GAFTA.

The association applies to the authorities to find the decision as soon as it is possible and to correct the situation on the grain market, which will allow to the mechanism to function in accordance with the international standards of free trade.