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CORRECTED - Ukraine to keep import surcharge on fridges, cars

Published 06/03/2009, 02:51 PM

(Corrects date of meeting on Ukraine to June 23 and 25 from June 25 and 27)

* Ukraine to keep 13 pct import surcharge on fridges, cars

* Ukraine to lift import surcharge on other goods

* WTO members continue consultations on Ecuador measures

By Jonathan Lynn

GENEVA, June 3 (Reuters) - Ukraine offered on Wednesday to lift a 13 percent import surcharge on a wide range of goods provided other members of the World Trade Organisation (WTO) allow it to retain the duty on refrigerators and motor vehicles.

WTO rules allow countries to restrict imports if they have balance of payments problems.

But Ukraine's moves and a proposal by Ecuador to raise tariffs on some goods and impose import quotas on others attracted close attention amid concerns that the economic crisis is increasing protectionist pressures.

The WTO's committee on balance of payments restrictions will discuss Ukraine's offer on June 23 and 25, a participant in the meeting said.

Kiev circulated a document saying it was lifting the surcharge it originally notified in March except for refrigerators and motor vehicles, on which it would remain in place until Sept. 7.

Zambia's WTO ambassador Darlington Mwape, who chairs the committee, said consultations on Ecuador's proposals were making progress but the committee would meet again on Thursday to take a final position.

WTO members failed to agree in April on Ecuador's proposed import restrictions, despite expressing understanding for its economic situation, for fear it could prompt a series of other countries to line up for similar treatment. [ID:nLO305683]

A new note circulated to WTO members by Ecuador explained that its decision to replace its sucre currency in 2000 with the U.S. dollar had made it much move vulnerable to variations in foreign trade flows.

"In a dollarised economy, the external sector becomes the source that generates the money supply through the development of production," it said.

The note said Ecuador had to cut its 2009 trade deficit to $2.69 billion from a forecast $3.97 billion, and was using temporary import restrictions to do so.

The tariff increases and import quotas would apply until Jan. 22 next year, but could be phased out earlier if the economy allowed, it said. (Editing by Robert Evans)

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