| Author (Person) | Beattie, Alan |
|---|---|
| Series Title | Financial Times |
| Series Details | 17.1.08 |
| Publication Date | 17/01/2008 |
| Content Type | News |
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The European Union yesterday paved the way for Ukraine to join the World Trade Organisation, a move which will admit a highly productive agricultural economy and give Kiev power to delay Russia’s entry to the global club. Peter Mandelson, EU trade commissioner, said he had reached agreement with Ukraine on the capping of export duties on a number of products including metals, animal hides, live cattle and other agricultural goods. Under WTO rules each existing member can block new members from joining unless they make trade reforms. “We intend to abolish export duties when we negotiate a free trade agreement with Ukraine,” he told the FT. “In the meantime we wanted a commitment that export duties would not be raised.” The EU has complained that export duties on metals constitute a hidden subsidy to Ukraine’s own metal-processing industry by making it too expensive to export the raw material to metallurgical factories abroad. Final agreement for Ukraine to join the 151-member WTO could come as early as the first week in February, whereupon it would gain the power to demand concessions from Russia, its neighbour, which first applied to join the organisation in 1993. Relations between the two countries have been strained since the so-called “Orange Revolution” in Ukraine in 2004, though Yulia Tymoshenko, the newly appointed prime minister, has said she wants to normalise relations with Moscow. Mr Mandelson said he doubted Ukraine’s accession would hold up Russia’s entry, adding that Moscow’s target of joining by the middle of this year was “ambitious but doable”. Russia’s WTO accession has been held up by objections from the EU, the US and other influential members, not least on the implementation of laws protecting intellectual property rights. The US music and movie industry in particular has complained that counterfeiting is rife in Russia and that the judicial system is unable or unwilling to stop it. Mr Mandelson said EU farmers should not fear competition from Ukraine, which has a highly productive agricultural sector and is one of the world’s largest wheat growers. “As far as wheat is concerned there is plenty of demand to go round at the moment,” he said. Copyright The Financial Times Limited 2008 |
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| Countries / Regions | Ukraine |
