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U.S. accuses Ukraine of violation of Association Agreement with EU, WTO

Source : 112 Ukraine

Trump’s administration stated that the Ukrainian bill on public procurements has references to supposedly similar American laws, which are not true
15:00, 25 August 2020

Open source

The administration of U.S. President Donald Trump noted that the references in the Ukrainian legislation on localization to supposedly similar American laws are not true, as Yevropeiska Pravda outlet reported.

Bill #3739 On localization changes the rules of public procurements in the machine-building industry. The authors of the bill refer in the explanatory note to two American laws, which supposed to have similar norms with the Ukrainian law and oblige the American public companies to buy American goods.

Related: Iran ready for negotiations with Ukraine on compensation for downed Boeing 737

Trump's administration explains that Buy American Act (Adopted in 1933) and American Recovery and Reinvestment Act (2009) create benefits for goods produced in the U.S. or any other state of the World Trade Organization (WTO) because according to the WTO rules, the U.S. also should provide the right of the public procurement to foreign goods or companies. It also concerns the Ukrainian companies and goods.

“The U.S. guarantees the Ukrainian companies, Ukrainian products, and services, along with the American, the equal access to the public procurements in the spheres included in the WTO agreements on public procurements,” the message said.

Related: Normandy format meeting of Foreign Ministers might take place in September, - Ukraine's MFA

That is why the bill on the localization violates the commitments of Ukraine not only with the Association Agreements with the EU but also with the WTO.

“We understand the necessity to overcome the economic consequences of the pandemic. But it is necessary to do it not forgetting the principles of the liberalization of the market, which brought prosperity and progress to both our countries,” the White House noted.

Related: EU plans to increase trade with Ukraine

As we reported, the European Union was concerned about changes to the law of Ukraine on public procurement, in particular the proposal to restrict access to public procurement of products for mechanical engineering, if at least some of the components are not produced in Ukraine.

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