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Status of Ukraine’s Accession to the WTO, NATO, & EU
Updated 28 June 2006; click here for Ukraine in Context
WTO:
Entry into the World Trade Organization is an important event, economically and politically, for Ukraine. The WTO Working Party established to negotiate the terms of Ukraine's WTO membership continues to work on its report, but a number of issues remain to be resolved. Ukraine's Working Party was established in December 1994 and over ten years later Ukraine is still trying to meet WTO requirements, with the last Working Party meeting having been held in early June 2006.
Nonetheless, the Ukrainian Supreme Rada (legislative branch) is in the process of reforming its trade laws according to WTO rules. For example, the Supreme Rada continues to pass laws reforming the agricultural sector, tax subsidies, intellectual property, and other standards required for joining the WTO. In addition, it has made pledges to tariff levels that provide trade liberalization and guaranteed market access to a range of products like meat, dairy and wool.
As of June 19th 2006, 50 WTO member states have requested trade negotiations with Ukraine. Taiwan became the 49th to complete bilateral talks with Ukraine. The US, led by US Trade Representative Rob Portman, also signed a bilateral agreement in March 2006 on market access issues as part of Ukraine's WTO accession negotiations. Ukrainian Minister of Economy Arseniy Yatsenyuk is confident that Ukraine will become a WTO member because he believes Ukraine “needs this for our economic growth and bilateral relations.”
Ukrainian President Viktor Yushchenko has stated his strong belief that WTO membership would benefit Ukraine’s economy. According to statistics provided by the Institute for Economic Research and Political Consultation in November 2005, the Ukrainian economy in general would see positive growth fairly quickly. Entry will, however, have some negative effects during the first few years on industries such as the food, refining, and agro-industrial industries. As a result, the Ukrainian government is preparing for these and other aftereffects of WTO accession by improving its agricultural support mechanisms and protecting domestic producers via tariffs.
NATO:
President Yushchenko has made NATO membership a priority since his 2004 presidential election campaign, and has been encouraging coalition talks for potential partners to commit to this goal. In public speeches, he has repeated that Ukraine desires long-term integration with NATO, so long as it does not damage the country’s relations with Russia. NATO accession has been also regarded as a first step toward EU membership.
Recent opinion polls have found that only about 20 percent of Ukrainians support NATO membership. Many Ukrainians perceive the alliance as a threat and fear it would upset relations with Russia. Critics also say it would be too expensive to maintain NATO military standards.
As a result of negative or apathetic opinions toward NATO, the alliance has set up 27 information stands across Ukraine, and invited lawmakers and religious leaders to NATO headquarters in Brussels for information sessions.
EU:
Although EU membership still remains in the distant future, Ukraine has several EU political and economic agreements under the European Neighborhood Policy (ENP). The ENP’s goal is to offer EU neighbor countries political partnerships and economic integration.
After the 2004 EU enlargement debate, the EU did not signal a willingness to consider Ukraine for membership, as Ukraine had hoped for, but instead furthered its relations through the ENP. A key new development of the ENP, the 2005 bilateral EU-Ukraine Action Plan, was created to better align Ukraine’s laws and standards to those of the EU. In addition, the Action Plan will help to devise and implement policies in promoting economic growth and social cohesion, in raising living standards, and in protecting the environment.
Once President Viktor Yushchenko took office in January 2004, he made EU membership a leading Ukrainian goal and has repeatedly called on the EU to offer the prospect of full membership. Even though President Yushchenko concedes Ukraine still is in need of policy changes, he vows to “reorganize the government so the process of integration into the EU becomes a real one.” Currently, both President Yushchenko and Foreign Minister Borys Tarasyuk are continuing to pressure and assure the Commission (which “Commission?”) about Ukraine’s EU membership. In March 2006, Tarasyuk announced the Ukrainian government must apply for a formal EU application before the end of 2006 if it is to achieve membership by 2015.
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