GAFTA intervenes into dispute between grain traders and Ukrainian authorities

Kyiv, August 19 (Interfax-Ukraine) – The Grain and Feed Trade Association (GAFTA) has drawn the attention of the World Trade Organization (WTO) and the European Union to the obstacles to grain exports from Ukraine created by the State Customs Service, President of the Ukrainian Grain Association Volodymyr Klymenko said at a press conference at Interfax-Ukraine on Thursday.

"GAFTA closely follows the principles of the WTO for liberalized trade and is very concerned to note these recent developments in Ukraine," Klymenko said, quoting a GAFTA statement at the press conference.

According to GAFTA, barriers and limits placed on traders' abilities to export are contrary to the spirit of the WTO, and recent changes to customs clearance procedures for grain cargo have seriously disrupted the free flow of agricultural commodities.

"The procedures do not follow the legislation; the tests are not based on sound scientific methodology nor are any known acceptable sampling methods followed," reads the GAFTA's statement.

"In any event, such intervention is not needed for export where consignments are sold on their quality specifications, and do not need to state the intended purpose, for feed or bread making," reads the statement.

GAFTA notes that the quality of wheat is agreed between exporters and importers and the goods are sampled and tested at load ports by independent superintendents to check they comply with the parties' contract specifications.

Klymenko said that GAFTA had sent its letter to the Ukrainian leadership – Ukrainian President Viktor Yanukovych, Prime Minister Mykola Azarov, Vice Premiers Viktor Slauta and Sergiy Tigipko, and Customs Service Chief Ihor Kaletnyk.