Despite the hand-wringing, Ukraine’s Parliament put on a hitherto unseen display of unity on the country’s entrance to the World Trade Organisation (WTO) when the matter was put to vote April 10. The Protocol of Accession was duly ratified with four of the five parliamentary factions voting in favour. This last step not only gave a guarantee for Ukraine’s full participation in the world economy, but also demonstrated that there are moments in which the different sides of the political divide can recognise a common good.
The April 10 ratification of the Protocol of Accession formally means that Ukraine has joined the WTO. “Today Ukraine has gone through all of the formal procedures which have to be undertaken for the legal status of Ukraine’s membership in the WTO,” confirmed President Viktor Yushchenko on the day of event. This step finished Ukraine’s marathon to join the trade organisation’s 151 other members. Membership will now come into effect 30 days after the ratification.
Parliament united for once
The voting for the ratification of the Protocol is one of the best demonstrations of single-mindedness in the whole history of Ukraine’s Parliament. Some 411 deputies of the 449 who were registered to vote supported the document. “I wish the Ukrainian parliament had such unity in all other questions which form national interests as well,” said the President. The Communist Party was the only faction which abstained.
Parliament approved five of the seven documents that are necessary to adapt Ukrainian legislation to WTO requirements. Two other bills are waiting for conclusions from profile committees and are expected to be approved without difficulty this week. Parliamentary Speaker Arseniy Yatsenyuk also underlined what he termed as “the incredible effectiveness” of the deputies’ work on issues connected with the country’s WTO membership.
Experts explain that during the past few years every government has worked actively in the direction of the trade organisation. “Governments have changed but negotiations have not stopped since 2004. Both the Yanukovych and Tymoshenko governments worked actively in this field. This question united all parliament forces,” says Vitaliy Vavryshchuk, an analyst at the investment bank Dragon Capital. “I think that the key factor which helped to get all this support was that every faction has businessmen who see a lot of advantages for them from this step,” he adds.
Long road to the WTO
It took 14 years for Ukraine to get a positive decision from the working party that adopted the package including market access schedules for goods and services along with a draft General Council decision and a draft Protocol of Accession on January 25. The WTO, the only international organisation dealing with the global rules of trade between nations, first attracted Ukraine’s attention back in November 1993 when the country submitted an application to join. A month later a working party was established in the Ukrainian parliament.
Since then the state has held many negotiations and made numerous legislative changes in order to meet the standards of the organisation, though the real work was done during recent years. After receiving a positive resolution from the working group the accession package was put forward to the General Council for consideration and approved at the meeting on 5 February 2008. Ukraine had until July 4 to ratify the Protocol but did so much earlier than expected.
Challenges ahead
Nevertheless, accession is not the end of the work involved because joining the WTO will require stable work from the parliament and similar unity in the future as the WTO develops and changes rules, requiring similar moves from its members. Consequently, the process of legislative changes will from now on be a permanent feature of Ukrainian political life. “These seven bills discussed in Parliament are just a part of the standard acts which must be approved and discussed in accordance with joining the WTO,” says Mr. Vavryshchuk at Dragon Capital.
WTO membership is widely thought to be worth all the effort because it guarantees Ukraine access to the markets of all other WTO members and creates a degree of certainty and stability in the openness of the Ukrainian market that will help attract new traders and investment.
“Accession to the WTO means the reform of the country’s external trade regime and is focused on long-term and middle-term perspectives. For example, the law on alterations to customs tariffs will come into force not earlier than January, 2009. Our producers will work under the terms they have now until end of this year,” adds Mr. Vavryshchuk.
