Ukraine to join WTO no sooner than early 2007, says economy minister in rebuff to Yushchenko (11/05/06)

Ukraine to join WTO no sooner than early 2007, says economy minister in rebuff to Yushchenko

by Zenon Zawada
Kyiv Press Bureau

KYIV - Ukraine can expect to join the World Trade Organization (WTO) no sooner than February 2007, said Minister of the Economy Volodymyr Makukha, derailing President Viktor Yushchenko's plan to join by late December.

Even if Ukraine passes the necessary laws and signs the necessary agreements by the year's end, Mr. Makukha said membership isn't realistic because Ukraine's legislative acts will still require extensive review by the WTO.

"After completion of Vietnam's procedures, the maximum amount of attention will be given to Ukraine," he told an October 30 press conference, referring to Vietnam's WTO bid. "In any case, to say that we will become a member earlier than February, when the WTO General Council meets, does not reflect reality," he added.

Mr. Makukha's announcement was yet another episode in the bipolar government's inability to agree upon a common foreign policy agenda and plan.

Just four days earlier, Mr. Yushchenko had said a December 21 meeting of the WTO would decide Ukraine's membership.

Although Mr. Makukha is an independent politician, he was appointed to his post by Prime Minister Viktor Yanukovych, the leader of the Party of the Regions, which staunchly supports pro-Russian cultural and military policies, but also favors European Union integration.

After Mr. Yanukovych inked a natural gas deal with the Russian Federation last week, political observers began suspecting that one of the unofficial conditions of the deal was for Ukraine to synchronize its WTO accession with Russia.

The Russian Federation's government is against Ukraine joining the WTO earlier, because that would give its smaller neighbor the upper hand in bilateral negotiations for its accession. Ukraine would then be able to use its stronger position to win gains in resolving trade disputes with Russia.

Mr. Makukha denied the coalition government was slowing Ukraine's entry on the Russian Federation's behalf, insisting it was deriving its policies and measures independently.

As evidence, he pointed to the fact that Ukraine is much further along in the WTO accession process.

Yet, at the same time, Mr. Makukha several times repeated the importance of Russia as a trade partner for Ukraine.

"This isn't the Olympics, where someone is supposed to finish first, and someone else second," he told The Weekly. "It's extremely important for us to become a WTO member, and we don't have any direct reason to tie this to Russia. There are certain problems that trouble them. We are giving them answers as to how to resolve these problems that arise."

Specifically, Russian trade officials expressed their concern that Ukraine's membership would lead to a flood of spirit, alcohol and sugar products from Ukraine.

Ukrainian officials assured the Russians that proper customs and border control would prevent a flood of such products into Russia, Mr. Makukha said. "We aren't talking about any synchronization," he said. "We're consulting and removing concerns from our trade partners."

Established in 1995, the WTO is an international trade organization aimed at enhancing free trade among states. Its supporters argue that free trade creates competition that ultimately benefits consumers, while its detractors believe the WTO is a part of a globalization process that is destroying local economies and communities.

In order to join, Ukraine's Parliament still needs to pass about 20 bills. The Presidential Secretariat has submitted 16 bills for review, which the Cabinet of Ministers will approve, Mr. Makukha said.

However, there are tactical disagreements between the Secretariat and the Cabinet regarding three bills that involve foreign economic policy and agriculture, he said.

Minister of Foreign Affairs Borys Tarasyuk on Octber 23 accused the pro-Russian coalition government of intentionally disrupting the schedule for preparing and reviewing WTO laws in the Verkhovna Rada. Furthermore, the Universal of National Unity called for the coalition government to complete all WTO-related measures by the year's end, he said.

Mr. Yanukovych said on October 30 that he will submit all the remaining, necessary WTO legislation for Parliament's consideration by mid-December.

Although the Party of the Regions and its ranks of wealthy businessmen generally support Ukraine's WTO accession, the Communists are notorious for their opposition, and it's unclear whether they will fall in line for the vote.

Other enemies of Ukraine's WTO accession, Mr. Makukha said, include businessmen who currently operate under closed schemes, and would therefore be negatively affected by new rules on transparency.

Other than bringing Ukraine's legislation into conformance with WTO requirements, Ukraine also needs to agree to tariff proposals and requirements. The only trade protocols still requiring bilateral agreements are with Kyrgyzstan and Taiwan, Mr. Makukha said.

The Verkhovna Rada was to consider 16 WTO-related bills at its November 2 session. The Communist Party of Ukraine has already stated its deputies will vote against the bills, while Our Ukraine and the Tymoshenko Bloc will vote in favor. Many Party of the Regions deputies will also vote in favor, while the Socialist Party of Ukraine hasn't indicated its position.

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