In accordance with the Ukrainian law designed to protect national producers from dumped imports, the Interdepartmental Commission on International Trade undertook an investigation based on a complaint by a group of Ukrainian companies, including LLC Agrokonczern and PJSC Zmiivska Vegetable Factory. This probe focused on investigating fair trade practices concerning the import of fresh cucumbers and tomatoes from the Republic of Türkiye. The investigation covered a period from April 1, 2023, to March 31, 2024, while scrutinizing imports made between January 1, 2021, and March 31, 2024.
The investigation specifically examined fresh or chilled cucumbers and tomatoes classified under certain subheadings within the Ukrainian Classification of Goods for Foreign Economic Activity. It was determined that these products were brought into the country at prices considerably lower than their regular market value, marking this as a case of dumping. Notably, the companies that filed the complaint account for more than half of Ukraine's market production for these goods, giving them a legitimate standing under national legislation.
Upon investigation, substantial evidence of dumping by Türkiye was uncovered. The calculated dumping margin for the prominent Turkish exporter, TALYA FRESH TARIM, was 20.1% for cucumbers and 25% for tomatoes. Other Turkish exporters showed slightly higher margins of 22.8% for cucumbers and 26.9% for tomatoes. These dumping margins were ascertained using methodologies in line with Ukraine's legal standards and illustrated how these practices were harming local producers. Notably, the imports of fresh cucumbers surged considerably relative to domestic consumption and production, whereas tomatoes increased substantially in relation to domestic production alone.
The Ukrainian domestic market for cucumbers suffered severe setbacks, with production dropping by almost 40%, a significant capacity decrease, and a corresponding downfall in sales and market share. Exports and employment in this sector also saw a sharp decline. The tomato sector mirrored these adverse effects to a somewhat lesser extent. These challenges were directly linked to the underpricing of imported goods which placed an additional financial strain on local growers, making it difficult for them to compete without incurring financial losses.
The investigation confirmed a direct correlation between the imported goods' low prices and the financial difficulties faced by Ukrainian producers. After considering all relevant submissions, the Commission decided to impose final anti-dumping duties for a five-year period to mitigate these harmful practices, effective ten days following the public notice. The set duties aimed to balance the negative effects of dumping: 20.1% for cucumbers and 25% for tomatoes for the main exporter, with slightly higher rates for others. These duties will apply to the customs value of the goods, accompanied by directives to ensure seamless trade continues.
Moreover, any imports lacking origin certification or those where origin cannot be determined will attract the highest duty rates. The Ukrainian authorities are determined to impose these duties without negatively impacting the customs clearance process, striving to safeguard fair competitive conditions in alignment with World Trade Organization principles while protecting local producers adversely impacted by these unfair trade practices.
Source: Ukrainian Government