Verkhovna Rada OKs more bills geared toward membership for Ukraine in WTO (11/06/05)

Verkhovna Rada OKs more bills geared toward membership for Ukraine in WTO

by Zenon Zawada
Kyiv Press Bureau

KYIV - The Verkhovna Rada on November 1 approved two more bills that will enable Ukraine's membership in the World Trade Organization (WTO).

As a result, the Rada has now passed 65 percent of the necessary WTO legislation, President Viktor Yushchenko told journalists that day.

WTO membership "will qualitatively change Ukraine's participation in the world markets," he said, stressing that 95 percent of the world's goods are traded within the WTO's bounds.

The first bill amended the law defending domestic producers from import dumping, while the second one amends the law to adopt special measures for imports.

In stressing the economic benefits of WTO membership, Mr. Yushchenko cited statistics provided by the Institute for Economic Research and Political Consultation.

The wealth of Ukrainians will increase annually by 3 percent, GDP will improve by 1.9 percent, foreign investment will grow a minimum of 50 percent, European Union exports will grow 15 percent and international trade income will increase 10 percent, the president said, quoting his experts.

Additionally, chemical, metallurgical and textile producers may increase production by as much as 30 percent, Minister of the Economy Arsenii Yatseniuk told a meeting of faction leaders and Cabinet ministers on November 1, which was called by the president to discuss the 2006 budget and WTO issues.

Already 80 percent of the Ukrainian economy functions within the WTO framework, he said. In some bilateral trade relations, Ukraine exceeds WTO conditions, Mr. Yatseniuk added. In some cases, Ukraine has lowered its import tariffs beyond what's required, he said.

Entry will have some negative effects on the Ukrainian economy, Mr. Yatseniuk acknowledged. Food, refining and agro-industrial industries generally experience 10 percent declines in the first year or two after WTO entry, he said.

The Ukrainian government is preparing for WTO's negative effects, Mr. Yatseniuk said, by improving its agricultural support structures and protecting domestic producers via tariffs.

Ukraine's tariff proposal to the WTO and its schedule is nearly complete, Mr. Yushchenko said.

However, the Ukrainian government has several critical steps it needs to accomplish, which was the purpose of Prime Minister Yurii Yekhanurov's visit to Washington on November 1-2.

Ukraine still needs to finalize bilateral agreements with several WTO nations, including the United States and Australia.

Mr. Yekhanurov told political scientists at the Carnegie Endowment for International Peace on November 1 that Ukraine substantially advanced its position in signing its trade protocol with the U.S. "With regard to the discussions, we accomplished all the earlier-provided basic conditions," Mr. Yekhanurov said.

He said he would discuss chicken imports to Ukraine, as well as gradual cancellation of exports duties on scrap metal and prohibitions of light metals.

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