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EuroChem welcomes WTO ruling against Ukraine anti-dumping duties

Published by , Deputy Editor
World Fertilizer,

EuroChem Group AG have welcomed a ruling by the World Trade Organization (WTO) Appellate Body that anti-dumping duties levied by Ukraine on ammonium nitrate imports from Russia violate its rules. The ruling upholds an earlier WTO panel judgment from 20 July 2018 against Ukraine’s decision to introduce duties on imports of ammonium nitrate.

The ruling is a significant victory for EuroChem, which also has ammonium nitrate production facilities in Russia. According to the WTO, Ukrainian authorities should have exempted the company from the anti-dumping duties because it was not involved in dumping practices during the original period of investigation. The WTO Appellate Body confirmed that Ukraine had acted “inconsistently” by adopting anti-dumping duties on ammonium nitrate manufactured by EuroChem. 

“We are happy that the WTO has confirmed its earlier panel judgment against these anti-dumping measures,” said EuroChem CEO Petter Ostbo. “We believe the measures were unjustified and unreasonable, and welcome the Appellate Body’s call for Ukraine to bring its measures in line with its international obligations.”

Background to the case

The anti-dumping measures against ammonium nitrate imports from Russia were initially imposed by Ukraine in 2008 and subsequently amended and then extended after the conclusion of an interim and expiry review investigation in 2014. The Russian Government lodged the case with the WTO in 2015.

The WTO panel ruled that Ukraine had acted unlawfully by including EuroChem within the scope of the measures, despite rulings by its own courts that the company’s dumping margin in the original investigation period was de minimis. Furthermore, the panel found that a producer whose dumping margin was found to be de minimis cannot be subject to further expiry or interim reviews. As a result, the panel ruled that the Ukrainian authorities had acted in breach of Article 5.8 of the WTO Anti-Dumping Agreement by including EuroChem in the scope of the subsequent interim and expiry reviews and by imposing a 36.03% anti-dumping duty on the company.

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