GENEVA, July 30. /Basereporter.com/. To win Russia’s dispute with Ukraine to the world trade organization (WTO) on rail cars for the first time in the history of litigation in the WTO was considered and security issues with regard to international Commerce.
This was reported to journalists on Monday in Geneva, a source familiar with the dispute settlement mechanism of the WTO, speaking on condition of anonymity.
“This was the first dispute considered by the Arbitration panel of the WTO, during which they discussed issues of security in the exporting country that is a member of the WTO”, – said the expert. He explained that, “given the situation in the security sphere in Ukraine, the panel of arbitrators deemed justified Russia’s actions, not sending inspectors to assess compliance procedures in Ukraine”.
Recognized and justified by the fact that the suppliers of the railway equipment from other exporting countries are not in a situation comparable to the situation of the Ukrainian suppliers. As recalled by the source, the debate on this bill originated in the panel due to the fact that Ukraine “has made a demand that creates a need in clarifying the question of whether the position of suppliers in Ukraine, “comparable” with suppliers from other countries.”
Characterizing as a whole the main outcome of the dispute, the expert stated that, in the opinion of the arbitrators, Ukraine has not proved “the existence of a systematic obstruction of the import of Ukrainian railway equipment from Russia”.
Earlier on Monday, the WTO has published on its website the report of the Arbitration panel that considered dispute. The arbitrators, in particular, came to the conclusion that Ukraine had failed to prove a violation of Russia’s “systematic obstruction of imports”, as well as violation of several WTO provisions claimed by Kiev. However, at some point the members of the Arbitration panel acknowledged the validity of the claims of Ukraine.
In October 2015, Ukraine filed a lawsuit in the WTO against Russia because of the restrictions that were imposed on import of Ukrainian carriages and turnouts. According to the Ukrainian side, exports of cars and turnouts in Russia decreased from $1.7 billion in 2013 to $51 million for 7 months of 2015.