WTO Admits Ukraine
6 February 2008
Ukrainian President Viktor Yushchenko and WTO Secretary General Pascal Lamy signed a protocol to admit Ukraine to the World Trade Organization yesterday. The country will officially become a member 30 days after ratification of the package by the Rada. The deadline for ratification is July 4, 2008. Oleksandr Klymchuk: Membership will provide access to the markets of all other WTO members, increase negotiating power in trade disputes, and provide leverage in trade talks with Russia as a WTO aspirant to help lift barriers to the Russian market for Ukrainian companies. Over a five year period, Ukraine will reduce its customs duties to rates ranging between zero and 50%. The negative effects from accession are limited as most sectors already operate in compliance with WTO membership requirements. Tariff reduction will mainly impact certain agricultural products while effective tariff rates for industrial products currently are even lower than import tariff bindings that will become effective after accession (4.40% vs 4.95%).
