Early May, the Ukrainian government has launched a safeguard investigation irrespective of country of origin concerning imports of knitted fabrics (Ukrainian codes 6002921000, 6002923000, 6002929000, 6002933100, 6002933300, and 6002933900). The investigation open based on a submission filed by the domestic closed company "Knitting factory Rose".
The EC is registered as an interested party which implies that the EU will have to submit comments to the complaint that for the moment is available only in Ukrainian. Commission should get hold of the non-confidential version in English but this will take time. As soon as the translation will be available, members will be posted.
As it follows from the EUROSTAT DATA - for some of the listed categories, the increase of exports from UE to Ukraine is really astounding. Also the tendency of the last 3 months of 2006 - when compared to the data of 2004 and 2005 shows the double increase of imports, whereas a rapid fall of prices has been visible since ca. mid-2005 and has continued in the first quarter of 2006. In accordance with the data estimated by the Polish Ministry of Economic Affairs - Polish export of knitted fabrics to the Ukrainian market is about 1 mln EURO (EUROSTAT data mentioned the 600.000 EURO).
However, in the categories in question, the average price for a tonne of products was EUR 20.694 (the lowest - for the 600621 category - EUR 7.965) This is in a sharp contradiction with the information of the Ukrainian applicant (ROSA Company) who says that an average price of the imported knitted fabric had fell in 2005 down to USD 1.094,11.

This state of affairs is also confirmed by the Polish knitting mills exporting to Ukraine. In spite of a much better quality of Polish knitted fabrics and quite a big interest in them, the main barrier for increasing the sales on the Ukrainian market is the fact that prices of knitted fabrics made by Polish manufacturers are twice as much as the prices quoted by Rosa (Ukrainian applicant) as its own for 2005 .

On 14 July 2006 the Inter-Departamental Commission for Foreign Trade of Ukraine took a decision on launching the next investigation nito imorts to Ukraine of cotton fabrics irrespective of the country of origin.
The subject of the investigation is cotton fabrics (the cotton content is 85% or more) with the surface density from 100 to 200 grams per square metre and the width of over 145 centimetres that have the following codes in the Ukrainian classification of goods: 5208221500, 5208221900, 5208229500, 5208229900, 5208290000, 5208321500, 5208321900, 5208329500, 5208329900, 5208390000, 5208521000, 5208529000, 5208590000.
The Ministry of Economy of Ukraine shall, within a deadline of 60 days upon publication of this notification (which was on 22 July 2006 in Urydovyy Currier newspaper N 135), accept for consideration written comments and data relevant to the said investigation.
The organisations of the European textile and apparel sector demand the EC to register as an interested party of this new investigation
Source: EUROCOTON materials, EC documentation

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