Eu opens wto door for ukraine
24 January 2008
Published in Kyiv Post
By: Dariya Orlova
The European Union agreed Jan. 17 on the final terms for Ukraine’s accession to the World Trade Organization (WTO), the supposed last hurdle on its arduous path toward membership.
“This is an important day for Ukraine,” EU Trade Commissioner Peter Mandelsohn said after Jan. 16 negotiations with the Ukrainian delegation led by Hryhoriy Nemyria, vice prime minister for Euro-integration.
By: Dariya Orlova
The European Union agreed Jan. 17 on the final terms for Ukraine’s accession to the World Trade Organization (WTO), the supposed last hurdle on its arduous path toward membership.
“This is an important day for Ukraine,” EU Trade Commissioner Peter Mandelsohn said after Jan. 16 negotiations with the Ukrainian delegation led by Hryhoriy Nemyria, vice prime minister for Euro-integration.
“Today’s agreement clears the way for Ukraine to
fully join the world trading system,” Mandelsohn
said. “This is the first step towards greater
Ukrainian integration with the global and the
European economies.”
The EU was the last trade partner to have reservations towards Ukraine, specifically export duties on metals, seed, live animals, and other agricultural goods.
Ukraine’s WTO entry would open the doors to a free trade agreement between Ukraine and the EU, which may become the core of a New Enhanced Agreement, a substitute to the Partnership and Cooperation Agreement that was signed in 1998 and planned for 10 years.
Final agreement on Ukraine’s WTO accession, following the working group report, can come as early as the next General Council meeting in Geneva scheduled for Feb. 5 and 6, President Viktor Yushchenko said.
After a positive decision from the General Council, the Ukrainian Parliament would have to ratify the accession agreements into law.
Ukraine, the biggest country besides Russia and Iran outside the 151-member trading bloc, has been negotiating for WTO entry for 14 years.
The long-awaited membership to the WTO is expected to bring global trade benefits for the country’s economy in the mid- and long-term, economic experts said.
Despite some fears that membership in the WTO will have a negative effect on domestic manufacturers, experts said the most crucial changes were already introduced through legislation.
“Producers have been operating within the new legislation, worked out to comply with WTO rules, for several years,” said Veronika Movchan, academic director at the Institute for Economic Research and Policy Consulting, a Kyiv-based think tank.
In fact, Ukraine is 70 percent in the WTO, she said.
“This became especially clear since 2005, when (protectionist) import duties were significantly reduced,” Movchan said.
The food industry, currently protected by import restrictions, will be the only large industry to feel the effects of WTO accession, according to experts.
The Institute forecasts that joining the WTO will boost GDP growth for Ukraine by an additional 2.7 percent in the mid-term (up to seven years) and 5 to 7 percent in the long term.
“The welfare of Ukrainians will grow even more (than GDP),” or by an estimated 7 percent in the mid-term, Movchan said.
The EU was the last trade partner to have reservations towards Ukraine, specifically export duties on metals, seed, live animals, and other agricultural goods.
Ukraine’s WTO entry would open the doors to a free trade agreement between Ukraine and the EU, which may become the core of a New Enhanced Agreement, a substitute to the Partnership and Cooperation Agreement that was signed in 1998 and planned for 10 years.
Final agreement on Ukraine’s WTO accession, following the working group report, can come as early as the next General Council meeting in Geneva scheduled for Feb. 5 and 6, President Viktor Yushchenko said.
After a positive decision from the General Council, the Ukrainian Parliament would have to ratify the accession agreements into law.
Ukraine, the biggest country besides Russia and Iran outside the 151-member trading bloc, has been negotiating for WTO entry for 14 years.
The long-awaited membership to the WTO is expected to bring global trade benefits for the country’s economy in the mid- and long-term, economic experts said.
Despite some fears that membership in the WTO will have a negative effect on domestic manufacturers, experts said the most crucial changes were already introduced through legislation.
“Producers have been operating within the new legislation, worked out to comply with WTO rules, for several years,” said Veronika Movchan, academic director at the Institute for Economic Research and Policy Consulting, a Kyiv-based think tank.
In fact, Ukraine is 70 percent in the WTO, she said.
“This became especially clear since 2005, when (protectionist) import duties were significantly reduced,” Movchan said.
The food industry, currently protected by import restrictions, will be the only large industry to feel the effects of WTO accession, according to experts.
The Institute forecasts that joining the WTO will boost GDP growth for Ukraine by an additional 2.7 percent in the mid-term (up to seven years) and 5 to 7 percent in the long term.
“The welfare of Ukrainians will grow even more (than GDP),” or by an estimated 7 percent in the mid-term, Movchan said.