WTO Welcomes Ukraine As A New Member

by Mike Godfrey, Tax-News.com, Washington

07 February 2008

The World Trade Organization's General Council has this week paved the way for Ukraine’s membership in the WTO by approving its accession terms. Ukraine will have to ratify the deal by 4 July 2008, and will become a WTO member 30 days after the ratification.

“Ukraine’s WTO membership will strengthen the multilateral trading system and provide this country with a stable and predictable trade environment that will boost its growth and prosperity. I am particularly pleased to welcome to the WTO President Victor Yushchenko, whose personal commitment to his country’s accession was a major factor in the successful outcome to these negotiations,” announced WTO Director-General Pascal Lamy.

Ukraine’s President Victor Yushchenko added: “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.

The General Council subsequently approved the Working Party report, the market access schedules on goods and services, the General Council Decision and the Protocol of Accession.

Ukraine must now ratify the deal by 4 July 2008, but an extension of this deadline is possible if necessary.

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.

Deputy United States Trade Representative, Peter Allgeier, commented on the announcement, stating that:

"We take enormous pleasure in approving Ukraine’s accession package and inviting it to join us in the World Trade Organization. We are honored by the presence of President Yushchenko. Mr. President, we would like to say “vee-tai-you” to you and your delegation."

“We are proud that our delegation provided the first Chairman for Ukraine's Working Party, Andy Stoler. We were pleased to provide extensive technical assistance in the negotiating process. But our enthusiasm this week is based on the accomplishments of Ukraine itself."

In addition to its commitments on market access for goods, 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.

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