Ukrainian President Viktor Yushchenko on
Friday vetoed a major bill on import and export duties, charging parliament was
attempting to evade World Trade Organization (WTO) rules, reported dpa.
Much of the tariff regulation changes supported by the pro-West wing of Ukraine's parliament were in line with WTO restrictions, but loopholes and pork barrel
clauses in the suggested law made a Presidential veto inevitable, Yushchenko
said.
"I am returning this bill for further consideration...because of its gross
violation of international agreements entered into by Ukraine...in the (proposed) legislation," Yushchenko said, according to a statement
made public by his office.
Ukraine became an working member of the WTO on June 16, but a key condition
of Ukrainian acceptance into the customs union was substantial changes to
Ukrainian import/export law, per a set timetable.
The legislation as passed by parliament violated the timetable by delaying
reduction in tariff protections to a host of Ukrainian manufactures from right
away as mandated by the WTO, to an excise tax reduction effective only at the
beginning of 2009, he said.
"This is...totally unacceptable," Yushchenko said in comments
reported by the Interfax news agency.
Ukrainian manufacturers of most meats, alcoholic and non-alcoholic beverages,
chocolate-based products, and automobiles had lobbied for the delays, citing
the danger of foreign competition to their businesses.
Ukraine currently is experiencing Europe's highest inflation rate, with price
growth running at an estimated 30 - 35 per cent annual rate.
The Yushchenko administration had placed high hopes on WTO entrance damping
down price hikes in domestic markets, but has met resistance from
industrialists and food manufacturers alike, who have argued WTO compliance is
dangerous to the Ukrainian economy and their corporate profits.
A pro-West coalition led by Yushchenko last week lost its ruling majority in
parliament, making passage of legislation only possible with the cooperation of
the opposition, which supports protective tariffs.