Ukraine’s President Victor Yushchenko declared “Ukraine’s membership to the WTO is truly an historic moment and is a decisive milestone in the development of our economy. We are convinced that our efforts will yield results and allow us to build closer economic ties worldwide.”
Ukraine applied for WTO membership in 1993, and the Working Party concluded the negotiations on 25 January 2008 under the chairmanship of Chile’s Ambassador Mario Matus. The General Council approved the Working Party report, the market access schedules on goods and services, the General Council Decision and the Protocol of Accession.
Ukraine would have to ratify the deal by 4 July 2008. An extension of this deadline would be possible if necessary. Ukraine will become a WTO member 30 days after the ratification.
Amongst the commitments undertaken by Ukraine are the following:
Market access for goods
As outlined in Ukraine’s market access schedules, Ukraine will have its customs duties capped at rates ranging between zero and 50% (bound rates). Some bindings involve reductions phased in over a period of up to 2013.
Ukraine’s average tariff bindings are 10.66% for agricultural products and 4.95% for industrial goods.
The highest tariffs Ukraine may apply are on items such as sugar (50%) and sunflower seed oil (30%). Other products with tariff ceilings of 25% include certain radio-broadcast receivers, catgut, and certain conveyor/transmission belts.
Product categories with lower tariffs that will initially or eventually be eliminated include civil aircraft, construction equipment, distilled spirits, certain types of fish, pharmaceuticals, certain chemicals and petroleum oils, medical equipment, wood, pulp & paper, certain yarn and fabric, certain base metals, steel, information technology products (ITA), furniture, and toys.
Ukraine has agreed not to apply any “other duties and charges” — beyond its ordinary customs duties.
In agriculture, Ukraine has agreed not to subsidize exports. Ukraine will limit its trade-distorting domestic support provided to farmers to UAH3,04 billion (approximately UDS613 million) as well as an allowance of 5% of the value of domestic agricultural production. As with all WTO members, Ukraine will have no spending limits on domestic support programmes that have no or minimal impact on trade, provided these programmes meet the criteria laid down in the Agreement on Agriculture.
Ukraine will open a tariff quota on raw cane sugar (260 000 tonnes annually, and increasing to 267 000 tonnes by 2010). This quota will be administered on a first-come first-served basis within 3 years of accession.
Market access for services
Ukraine has made specific commitments in all 11 “core” service sectors — including business services, communication services, construction and related engineering services, distribution, education and environmental services, financial services (insurance and banking), health and social services, tourism and travel, recreational, cultural and sporting services, and transport services — as well as in other areas including beauty, hairdressing, spa and massage services.
Ukraine’s accession documents
- Ukraine’s commitments on goods — a 890-page list (or “schedule”) of tariffs, quotas and ceilings on agricultural subsidies, and in some cases the timetable for phasing in the tariff cuts
- Ukraine’s commitments on services — a 40-page document (also a “schedule”) outlining the services in which Ukraine is giving access to foreign service providers on a non-discriminatory basis and any additional conditions, including limits on foreign ownership
- The Working Party report — a 240 page document describing Ukraine’s legal and institutional set up for trade, along with commitments it has made in many of the areas covered by the report.
Background information on Ukraine
Ukraine became independent after the Soviet Union dissolved in 1991.
Europe’s second largest country by area, Ukraine is a land of agriculture and heavy industry with a population of 46.6 million people.
In 2006, Ukraine’s nominal GDP reached USD106.1 billion (source from World Bank).
Merchandise exports/imports(2006)
- Merchandise exports: USD38.368 billion
- Merchandise imports: USD45.035 billion
Services exports/imports(2006)
- Commercial services exports: USD10.671 billion
- Commercial services imports: USD8.484 billion
Main exports
Ukraine’s main exports are ferrous and nonferrous metals, fuel and petroleum products, chemicals, machinery and transport equipment, food products. Agricultural products account for 13.4% of Ukraine’s exports while manufactured products account for almost 72% and fuels and mining for 13.6% (figures for 2006).