EDITORIAL: Ukraine and the WTO (06/26/05)

EDITORIAL

Ukraine and the WTO

President Viktor Yushchenko this week underlined yet again that Ukraine's goal is to become a member of the World Trade Organization, and that it aims to do so before the end of 2005.

For that to happen, Ukraine's Verkhovna Rada must act - and quickly, before it goes on summer recess - to pass a package of bills that will bring Ukraine into line with the WTO's requirements. In fact, that was the No. 1 recommendation of the World Economic Forum's Ukraine Roundtable, dubbed by many a "mini-Davos" (a reference to the World Economic Forum's huge annual meeting held in Davos, Switzerland) that was convened in Kyiv on June 16-17. In an effort to promote Ukraine's rapid economic progress, the roundtable proposed a 10-point action plan that requires Ukraine's urgent attention.

Prof. Klaus Schwab, founder and executive chairman of the World Economic Forum, underscored: "The Ukrainian government must seize this window of opportunity to deliver reforms in a fast, decisive and comprehensive manner."

Just days earlier, on June 14, that window of opportunity seemed to be closing as Ukraine's Parliament voted to reject proposed legislation that would help Ukraine gain entry into the World Trade Organization. The package of bills that the Parliament needed to pass included measures on protecting intellectual property rights, as well as removing technical barriers hindering trade, and reducing or abolishing export duties on certain products.

The Rada's failure to approve the legislative package was a serious setback for the Yushchenko administration and the government led by Prime Minister Yulia Tymoshenko. E. Morgan Williams, a Washington business executive and publisher of the Action Ukraine Report, commented that "Several top U.S. government officials involved in economic and trade agreements indicated ... that they were very disappointed in the Parliament's failure to pass the needed amendments." Focusing on intellectual property rights legislation, Mr. Williams wrote (in an opinion piece republished in last week's Weekly) that inaction on this issue "will jeopardize Ukraine's efforts to join the WTO and its efforts to get rid of economic sanctions imposed by the United States," as well as Ukraine's program to improve its business environment.

A week after the Rada's rejection of the necessary bills, Prime Minister Tymoshenko announced that her government had begun a campaign to secure their passage. "We will carry out consultations with all the parliamentary factions in order for this vote to occur," she stated. Well, that certainly should help - especially since the legislative package did not even have the support of deputies who support the Yushchenko administration. Clearly, then, the message that this package is a "must" had not been delivered, or had not been delivered convincingly to Ukraine's national deputies.

As for the deputies, who come from a variety of backgrounds and political parties, we hope they realize that this is no time for pettiness or shortsightedness. They must understand that it is not only Ukraine's entry into the WTO, but its standing worldwide, along with the ultimate well-being of the Ukrainian people who will benefit from the country's economic success, that hinges on their approval of these bills.

Thus, we hope the Verkhovna Rada will act - before its current session ends on July 8 - to pass the package of laws that Ukraine needs in order to be considered for membership in the World Trade Organization. If Ukraine's own legislators won't act in the interests of their country, why should anyone else?

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