Ukraine's WTO bid hinges on a package of legislation (06/26/05)

Ukraine's WTO bid hinges on a package of legislation

by Zenon Zawada
Kyiv Press Bureau

KYIV - In what has emerged as a critical political test for the new government, Prime Minister Yulia Tymoshenko is rallying votes to support a package of bills that would enable Ukraine to possibly join the World Trade Organization (WTO) this year.

Ms. Tymoshenko announced the campaign on June 21, exactly a week after a Communist-led majority in the Verkhovna Rada voted to reject several bills that would have helped clear the way for Ukraine's WTO bid.

"We will carry out consultations with all the parliamentary fractions in order for this vote to occur," Ms. Tymoshenko told reporters after a joint meeting of parliamentary leaders and government officials.

It was apparent during the meeting that there were enough votes to pass the necessary laws, she said.

The package of bills includes measures on protecting intellectual property rights, as well as removing technical barriers hindering trade, and reducing or abolishing export duties on certain products.

Whether Ms. Tymoshenko is able to muster enough votes in the Rada will demonstrate whether President Viktor Yushchenko's government has the necessary political footing to realize its ambitious economic goals.

Ms. Tymoshenko's rallying cry is a direct attempt to satisfy the demands of international financiers and investors who attended the World Economic Forum's Ukraine Roundtable held in Kyiv on June 16-17. As part of their "Ten Action Steps" proposed to Mr. Yushchenko, they placed WTO compliance as their most urgent priority for Ukraine.

"The participants propose the following steps to be taken urgently: 1. Enact all legal changes needed for WTO entry before the Parliament's summer break," the statement noted, adding, "If necessary postpone the Parliament's summer vacation."

Mr. Yushchenko had repeatedly stated his goal of having Ukraine join the WTO by the year's end. However, only one and-a-half weeks remain before the Verkhovna Rada's plenary session concludes for its summer recess.

The Parliament will convene again in September, and the sixth WTO ministerial conference won't meet until December 13 in Beijing, China.

Ms. Tymoshenko asked that the Rada approve a package of 14 bills critical to WTO admission. Creating the block of legislation enables the Rada to approve WTO in a swift manner, she explained.

"Admission into the WTO is not something exotic," Ms. Tymoshenko said. "Today, almost all nations are WTO members, with a few exceptions."

Those organizations that aren't yet members are working very seriously to gain admission, particularly the Russian Federation, she said.

Failure to ratify the necessary legislation at the June 14 Rada session was a significant setback for Mr. Yushchenko's and Ms. Tymoshenko's efforts to prove to other nations that Ukraine is progressing toward integration.

"Several top U.S. government officials involved in economic and trade agreements indicated last week in Washington they were very disappointed in the Parliament's failure to pass the needed amendments," reported E. Morgan Williams, a Washington-based business executive who publishes and edits the Action Ukraine Report, a daily international newsletter.

President Yushchenko and Prime Minister Tymoshenko failed to adequately inform national deputies about the importance of passing the intellectual property rights amendments, Mr. Williams wrote.

A bit of an embarrassment for Mr. Yushchenko and Ms. Tymoshenko was that opposition to WTO standards did not come only from the Communists and the Party of the Regions.

National deputies of the Our Ukraine bloc either failed to show up at important sessions in late May and June or did not vote in support of the necessary legislation - particularly intellectual property rights, Mr. Williams wrote.

Following a June 22 joint meeting of Verkhovna Rada and Cabinet leaders, Verkhovna Rada Volodymyr Lytvyn said the Rada would review several WTO-related bills on June 23.

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