You're reading: Cabinet approves concept of draft law on domestic trade in Ukraine

The Ukrainian cabinet has approved a concept for a draft law on domestic trade aimed at defining the legal and organization principles for trade, the basis for its state regulation and a mechanism for the realization of state policy in the domestic trade sphere.

This is stipulated in cabinet resolution No. 1200 of October 7, 2009.

According to the resolution, the draft law should define the legal
status of nongovernmental organizations and economic entity unions in
the domestic trade sphere and a mechanism for their participation in
the realization of the state policy in the sphere.

The draft also should foresee a mechanism for state support of
economic entities in the domestic trade sphere that sell social
products, and envisage penalties for violations of the law.

The adoption of the law on domestic trade would promote the
organization of trade, coordination of activities of state executive
power bodies and local government bodies, it would also foster the
creation of a competitive environment, raising investment in the
domestic trade sphere and increasing the level of trade servicing of
the public and protection of consumer rights, the resolution reads.

The resolution says that the economy, finance and justice
ministries, state committees for technical regulation and consumer
policy, regulatory policy and entrepreneurship are to draw up the draft
law on domestic trade and submit it to the cabinet by December 15, 2009.

The acting head of the Antimonopoly Committee of Ukraine, Oleksandr
Melnychenko, told Interfax-Ukraine that earlier the committee sent an
official letter to the economy minister to include representatives of
profile associations and confederations of producers in a working group
on the drawing of the draft law on domestic trade to settle problematic
issues between food suppliers and retail chains. However, the committee
has not received an answer to its letter.

Melnychenko said that it is necessary to amend the draft law on
domestic trade drawn up by the Economy Ministry. In particular, it is
necessary to define clear requirements to the agreements that would be
signed between the sides and the procedure and terms of payment for
supplied goods.

“The agreements should recognize the rights and commitments of
suppliers and sellers, as well as a description and the value of
services that are rendered. Violations of requirements should foresee
serious penalties,” he said.

He said that retail chains set discriminative conditions for
suppliers, in particular, they imposed additional chargeable services,
charged fees for stocking shelves of stores and for participation in
the upgrade of stores.

Melnychenko also said that retail chains make suppliers cut prices
during sales promotions carried out by stores, while the stores
themselves dot not cut their markup.