Ukraine's Accession to the WTO

Ukraine has been seeking membership of the World Trade Organization (WTO) for over a decade and now appears to be reaching the end of accession negotiations. A lot has been done but still there's a long way to go and some obstacles remaining.

• Ukraine has already introduced many changes to bring its trade regime into conformity with WTO norms. Over 200 existing and draft laws relevant to WTO accession can be listed. However, to complete accession negotiations, Ukraine will need to concentrate on completing legal and institutional reforms. The major ones remaining are standards, intellectual property rights and agricultural subsidies.
• Passing the remaining legislation will require the direct involvement of Ukraine's top political leadership. Mobilizing political constituencies behind these legal reforms and providing stronger internal support for the negotiation team are the key ingredients to completing accession negotiations.
• Ukraine has reportedly addressed most members' concerns about tariffs and other market access barriers. About 95% of proposed tariffs on Ukraine's goods have been accepted by other WTO members. Nevertheless, interventions in the sugar trade and export duties on metal scrap, hides, and certain agricultural products continue to pose obstacles to completing accession negotiations. Export restrictions represent a second market access dispute. Ukraine employs export taxes, outright bans, minimum prices, and customs fees that act as additional export taxes. It should be kept in mind that WTO membership is not an end itself and institutional reforms should be implemented for Ukraine to benefit economically from WTO membership. What will it take to exploit these benefits?
• Ukraine must increase its capacity to conduct effective commercial diplomacy, including improved trade policy coordination across ministries, better communication between the executive and legislative branches, and institutionalized public management.
• Ukraine will need to preserve the trade liberalization accomplished during the accession process.
• Ukraine will need to undertake substantial administrative and institutional improvements to benefit from WTO regulatory obligations, such as codes on intellectual property rights, standards and customs.

Based on the World Bank’s Ukraine Trade Policy Study