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Grain Subsidies in Ukraine: The Role of WTO Law and the EU-Ukraine Association Agreement

Kateryna Zelenska

ISBN13: 9789004353688

Published: February 2018

Publisher: Brill Nijhoff

Country of Publication: The Netherlands

Format: Hardback

Price: £200.00

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Grain Subsidies in Ukraine is the first attempt to examine impact of international trade law on Ukrainian policies in the cereals sector. The author focuses on instruments of state support to agricultural producers. Those are examined in their compliance with Ukraine’s WTO commitments. The other central component of the book is the effect of the EU-Ukraine Association Agreement on the policy space of Ukrainian rule makers.

The treaty contains legal approximation provisions, which may have a far-reaching impact on Ukrainian agricultural regulation. In this regard, the agreement is compared to other free trade agreements signed by Ukraine. Another focal point is the question to what extent Ukraine could make use of the EU agricultural aid practice. Although certain EU experience is found to be useful, the book generally advocates reducing distortive policies in Ukraine by substituting subsidies by market-based instruments.

Subjects:: International Trade, European Jurisdictions, Ukraine

Contents:: Acknowledgements; List of Abbreviations; Introduction; Identification of the Research Subject; Subject of the Study; The Course of Examination; 1. Economic Aspects of State Support Measures (Subsidies) with Specific Consideration of Agriculture; 1.1 Nature and Impact of Subsidies; 1.2 Specificity of Agricultural Sector; 1.2.1 Features of Agricultural Markets; 1.2.2 Components of Agricultural Policies; 1.2.3 Development Aspects of Agricultural Policies; 1.2.4 Effects of Agricultural Support; 1.2.5 Justification of Agricultural Subsidies in Light of the Concept of Multifunctionality; Conclusion of Chapter 1; 2. Introduction to Agricultural Policies in Ukraine; 2.1 Process of Agricultural Transition in Ukraine; 2.1.1 The Nature of Agricultural Transition; 2.1.2 Agricultural Transition in Eastern Europe: Common Trends and Specific Features in Ukraine; 2.2 Legal Framework of Agricultural Policies in Ukraine; 2.2.1 Lex generalis and Lex specialis of Grain Trade Regulation; 2.2.2 Organisation Forms of Agricultural Production in Ukraine; 2.3 Objective Handicaps for Agricultural Growth; 2.3.1 Grain Production Costs; 2.3.2 Farm-gate Prices; 2.3.3 Sustainability Concerns; Conclusion on Chapter 2; 3. External Factors with Influence on Ukrainian Grain Policies; Scope of the Chapter; 3.1 Implementation of Agricultural Disciplines within World Trade Law; 3.1.1 Emerging Power of the wto; 3.1.2 Particularities of Multilateral Regulation on Agricultural Trade; 3.1.3 A Short Overview of the AoA Disciplines; 3.1.4 Agricultural Policies in the Framework of the Doha Reform Process; 3.2 Agricultural Commitments within Regional Trade Agreements; 3.2.1 Issues Emerging with Proliferation of rtas; 3.2.2 Incorporation of Agriculture into Trade Deals; Conclusion of Chapter 3; 4. Subsidy Definition: International Approaches in Regulation; Scope of the Chapter; 4.1 Definition of Subsidy under wto/gatt Law; 4.1.1 Overview of Criteria; 4.1.2 The Element of “financial contribution” (Art.; 1.1.(a)(1) of the scma); 4.1.3 The Element of “government or any public body”; 4.1.4 Alternatives to the Requirement of “financial contribution by government”: Granting of Income or Price Support (Art.; 1.1.(a)(1) of the scma); 4.1.5 The Element of “benefit” (Art.1.1. (b) of the scma in Conjunction with Art.; 14 of the scma); 4.1.6 The Element of “specificity” (Art.; 1.2. of the scma); 4.1.7 Incorporation of Agricultural Subsidies into General Disciplines; 4.1.8 “Peace Clause” Expiry and the Interplay between the scma and the AoA; 4.2 The eu Approach to Subsidies; 4.2.1 Introduction; 4.2.2 The Element of Benefit (“aid in any form”); 4.2.3 The Element of “public costs”; 4.2.4 The Element of “selectivity”; 4.2.5 State Aid v. Subsidy: ecj Interpretation; 4.2.6 Agricultural Subsidies in the eu State Aid System; 4.3 Interplay of the wto and eu Subsidy Concepts; 4.4 Regulation of Subsidies in Ukraine; 4.5 Incorporation of State Aid Regulation into the Framework of eu-Ukraine Co-operation; 4.6 The eeu Approach to Domestic Support Regulation; Conclusion of Chapter 4; 5. The eu Practice on Agricultural Support; Scope of the Chapter; 5.1 The Development of European Common Agricultural Policy (cap); 5.2 Pillar i Measures Applicable to Cereals; 5.2.1 Grain Interventions; 5.2.2 Direct Payment Schemes; 5.3 Examples of Domestic Support “Greening” within Pillar ii; 5.3.1 Investment Aid; 5.3.2 Risk Management Instruments of the cap; Conclusion on Chapter 5; 6. Interplay between State Support for Grain in Ukraine and International Trade Commitments; Scope of the Chapter; 6.1 Reference Point: Ukraine’s wto Domestic Support Commitments; 6.2 Overview of State Support for Grain in Ukraine; 6.3 Price Support; 6.3.1 Direct Support; 6.3.2 State Grain Pledges; 6.3.3 Commodity and Financial Interventions for Cereals; 6.3.4 Provisional Price Administration; 6.3.5 State Forward Purchases; Intermediary Summary; 6.3.6 Direct Price Controls; 6.3.7 Market Alternatives to State Price Interventions; 6.4 Quasi Income Support; 6.4.1 Subsidised Credits and Loans; 6.4.2 Leasing Subsidies; 6.4.3 Other Input Subsidies; Intermediary Summary; 6.4.4 Alternatives for Input Subsidies; 6.4.5 Insurance Subsidies for Agricultural Producers; 6.5 Shortcomings of Agricultural Direct Support in Ukraine; 6.5.1 Foreseeability Concern; 6.5.2 Selectivity v. Equity; 6.5.3 Efficiency; Intermediary Summary; 6.6 Indirect Support: Tax Subsidies; 6.6.1 Introduction to Ukraine’s System of Agricultural Taxation; 6.6.2 Fixed Agricultural Tax (fat) Regime; 6.6.3 vat Regime for Agricultural Production; 6.6.4 Taxation of Private Households; Intermediary Summary; 6.6.5 Taxation in the Framework of eu-Ukraine Co-Operation; 6.6.6 General Summary on Agricultural Taxation in Ukraine; 6.7 Legal Changes of Domestic Support after Ukraine’s wto Accession; 6.7.1 The Factor of Economic Crisis; 6.7.2 Changes in the Structure of Agricultural Support; 6.7.3 Economic Impact of the wto Accession on the Ukrainian Agricultural Sector; 6.8 The Case of “External Domestic Support”: Co-operation with China; 6.8.1 China’s Agricultural Credits; 6.8.2 Assessment of Chinese Credits in the Light of wto Law; Intermediary Summary; 6.9 Proposals for Agricultural Policy Reform in Ukraine; 6.9.1 Promotion of Private Investment; 6.9.2 Direct Tackling of Farm Income Problem; Conclusions on Chapter 6; 7. Export Measures for Foodstuffs: Rationale, Forms, and Impact; Scope of the Chapter; 7.1 Export Restrictions; 7.1.1 Rationale of Export Restrictions in Agricultural Trade; 7.1.2 Factors Contributing to the Emerging Significance of Export Restrictions; Intermediary Summary; 7.1.3 Regulation of Export Restrictions within the wto/gatt System; Intermediary Summary; 7.1.4 The Case of Export Duty; 7.1.5 Export Restrictions and Investment Measures; 7.1.6 Interplay of Export Restrictions and Subsidies; Intermediary Summary; 7.1.7 Export Restrictions in the Doha Process; Intermediary Summary; 7.2 Agricultural Export Policies in Ukraine; 7.2.1 General Legal Framework; 7.2.2 Ukraine’s Sunflower Export Policies; 7.2.3 Export Measures in the Cereals Sector; 7.2.4 New Mechanisms of Quasi-Voluntary Export Restrictions by Exporters; 7.3 Credibility of Ukraine’s Justifications for Export Restraints; 7.3.1 Arguments at the National Level; 7.3.2 Arguments at the Multilateral Level; 7.4 Alternative Measures; 7.4.1 National Level; 7.4.2 Regional Level; 7.4.3 Global Approach: Alternative Measures at the Multilateral Level; Intermediary Summary; 7.5 wto Disciplines on Export-Incentive Measures in the Context of Ukraine’s Agricultural Policies; Rationale for the Examination; 7.5.1 Distribution of Non-Commercial Stocks; 7.5.2 Payments Financed by Virtue of Governmental Action; 7.5.3 Reduction of Export Marketing Costs; 7.5.4 Export Credit and Insurance Schemes; 7.5.5 Regulation of Export-Incentive Measures within the eu-Ukraine aa; Intermediary Summary; 7.6 Export Impact of State Trading; 7.6.1 gatt Disciplines; 7.6.2 stes in Agriculture; 7.6.3 State Trading in Ukraine; 7.6.4 State Trading Issues within the eu-Ukraine Cooperation; Intermediary Summary; Conclusion on Chapter 7; Final Conclusions; Bibliography; Index