The European Commission and the Government of Ukraine reached agreement on the text of a new steel agreement for years 2005-2006

April 7, 2005.

    *** On 30-31 March 2005, representatives of the Government of Ukraine and the European Commission held consultations in Kiev on the steel agreement between Ukraine and the European Community for the years 2005-2006. Both sides reached full agreement on the text, including on the quantitative limits. The text of the agreement will now be examined by their respective authorities and after approval be signed and enter into force.
    Concerning the quantitative limits, the maximum export amount of the steel products from Ukraine to the Community, as set out in the Agreement, is 980 000 tonnes for 2005 and 1004 500 tonnes for 2006. The distribution of these amounts over the various categories is as follows:
    Product
    Tonnes
    2005
    2006
    1.1.1. SA. Flat rolled products
    SA1. Coils
    150 000
    153 750
    SA2. Heavy plate
    348 000
    356 700
    SA3. Other flat rolled products
    97 000
    99 425
    1.1.2. SB. Long products
    SB1.Beams
    30 000
    30 750
    SB2. Wire rod
    125 000
    128 125
    SB3. Other long products
    230 000
    235 750
    Total
    980 000
    1 004 500
    Both sides confirmed that trade in ferrous scrap shall be completely free from quantitative restrictions, custom duties, charges or any other measures which have an equivalent effect. For the moment, Ukraine applies a levy of ?30/tonne on the export of ferrous scrap. As foreseen by the Agreement, Ukraine undertook not to raise the levy and to work towards its gradual removal. In such circumstances, the quantitative limits would be increased, up to 43% in case of its elimination.
    The Agreement is concluded for 2005 and 2006 but will be terminated earlier, on the day Ukraine becomes a member of the WTO.
    Commissioner Mandelson said to be very satisfied with the agreement reached which implies an almost 40% increase from the present quota level and said to work hard for its early implementation.
    For more information please contact Anje Schubert, Press Officer, Tel: 462 00 10.