Ukraine to become member of the World Trade Organisation, WTO
Press release 39/2008
5 February, 2008
Ukraine has become a member of the World Trade Organisation, WTO. The WTO General Council approved Ukraine’s membership on 5 February 2008. By the side of Russia, Ukraine has been among the most important WTO member candidates for Finland. Business life in Finland is considered to benefit both directly and indirectly from Ukraine’s accession to the WTO. The package of commitments linked with the WTO membership will open up markets and bring major benefits for both Ukraine and its WTO partners. Commitment to the WTO rules will make the corporate operating environment more predictable and stable.
Export duties were the key question remaining open until the very last stages of accession negotiations. In accordance with an agreement between the EU and Ukraine, Ukraine will commit itself to gradually lowering the currently applied export duties (e.g. on scrap metal) and refrain from raising the export duties on these products in the future.
Upon WTO accession, Ukraine will bind its import tariffs on industrial products to an average of 4.81 per cent and on agricultural products to 10.61 per cent. Ukraine will eliminate import tariffs on information technology products, pulp & paper products, medical equipment, and furniture. The country has made extensive commitments on almost all service sectors, such as: business services, telecommunications services, construction and related engineering services, environmental services, financial services, and transport services.
From the EU’s perspective, other significant commitments undertaken by Ukraine include railway fees that, in the future, will be applied on all goods on a non-discriminatory basis. Ukraine will eliminate the exemption from VAT on automobile, shipbuilding and aircraft industry products, as well as state subsidies granted to these sectors that are forbidden by WTO rules. In accordance with its WTO commitment, Ukraine will not apply any obligatory minimum prices on imports. From the date of accession, Ukraine will fully comply with WTO rules in export licensing and customs valuation. As far as the implementation of industrial and intellectual property rights are concerned, Ukraine’s WTO commitments are all-inclusive, and even compliant with EC directives.
Ukraine will become a fully fledged WTO member 30 days after the country has notified the WTO about the national ratification. During the accession process, the compatibility of Ukraine’s own legislation with the WTO rules was examined, and Ukraine also conducted bilateral negotiations on market access with WTO member states. The accession process of Ukraine lasted a total of 14 years. The EU had set Ukraine’s WTO membership as a prerequisite for the EU-Ukraine free trade negotiations, which can, therefore, now be launched.
The interest of Finnish companies towards Ukraine is growing. Currently, approximately 80 Finnish companies are operating in Ukraine. Last year, the value of trade between Finland and Ukraine amounted to slightly over half a billion euros, showing a clear surplus for Finland. According to customs statistics for January-November, the trade increased at the rate of almost twenty per cent. In 2006, the growth rate was as high as 48 per cent.
Additional information: Commercial Counsellor Mary-Anne Nojonen, Department for External Economic Relations, tel. +358 9 1605 5560