Last Wednesday the Verkhovna Rada, despite the hue and cry in parliament that at times turned into hand-to-hand combat, still managed (key word here) to pass several bills that will smooth the progress of our country’s entry into the World Trade Organization. If and when Ukraine is granted WTO membership, other members of this organization won’t be able to apply non- tariff trade restrictions, nor will they be in a position to commence antidumping proceedings against Ukraine. This may provide Ukrainian exporters with easier access to world markets. The WTO currently numbers 148 member countries sharing 97% of the world trade turnover, including over 95% foodstuffs sold all over the world.
Parliament first passed a bill widely known as the law on the protection of intellectual property, which envisages criminal prosecution for the illegal distribution of pirate CDs and matrices for laser reading systems, possession of specialized equipment and raw materials for their production, and licensing procedures not only for exporting and importing CDs but also matrices and raw materials for manufacturing CDs and matrices. Every 3-year license will be issued by the Ministry for Economics pending a foreign trade contract or agreement. Impoundment procedures are being formulated with regard to CDs, matrices, equipment, and raw materials if and when they are found to have been produced or procured in violation of the law. The licensing authority is entitled to seal or impound such CDs and matrices if they are found to have been produced illegally.
At the same time, the Verkhovna Rada passed a bill in the first reading to lift the ban on nonferrous metal exports and to impose an export duty. The rate will be 50% of the customs value of all such products, as well as 30% on zinc and tin scrap, but no less than a certain fixed sum in euros per one kg of every type of metal.
Amendments were passed in the first reading to the law on export duties on certain kinds of oil-bearing seeds. A 16% export duty (now set at 17%) will be imposed on flax (ground or whole), of sunflower (ditto) and camelina (littlepod false flax) seeds. As of January 1, 2007, the export duty on these seeds will be reduced annually by between 1% and 10%.
The Verkhovna Rada couldn’t pass the whole package of bills making Ukraine’s admission to WTO easier because of resistance from a number of political forces in parliament. At the same time, experts believe that what has been accomplished will allow a working group to consider Ukraine’s WTO membership. If it passes a positive decision at its sitting, the next WTO conference in Hong Kong will have its final say on Ukraine. Oleh Rybachuk, Deputy Premier for European Integration, is also optimistic about Ukraine being admitted to WTO before the end of the year: “All the laws don’t have to be passed for the prospect of membership. Even this one-plus-four standing has improved our chances by more than 50% to have the question of Ukraine’s entry placed on the agenda already by this fall. We have crossed the Rubicon and this is clear.” Mr. Rybachuk also believes that the intellectual property protection bills passed by the Verkhovna Rada will solve the problem of Ukraine’s WTO membership.
