Wednesday, November 21, 2012

Ukraine, tariff and domestic policy space

I have blogged about Ukraine's tryst with the world trading system in the context of the Australian Tobacco Plain Packaging legislation challenge here. KyivPost recently reported that the Ukrainian Parliament has decided to raise the import tariffs to the maximum level of bound tariffs under the multilateral trade rules.
"The Ukrainian parliament is to increase the import duty rates for around 100 commodities to the maximum level agreed by Ukraine and the World Trade Organization (WTO) from January 1, 2013."
Ukraine has also been in the news for the use of GATT Article XXVIII tariff renegotiation. Is this latest step of increasing tariff rates to the bound levels a sign of protectionism or exercise of domestic policy space? 

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