RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/SPEC/UKR/6 
23 March 2004 
 
 (04-1295) 
Working Party on the 
Accession of Ukraine Original:   English 
 
 
 
ACCESSION OF UKRAINE 
 
Questions and Replies on Domestic Support and  
Export Subsidies in the Agricultural Sector  
 
 
 The Governmental Commission on Ukraine's A ccession to the World Trade Organization has 
submitted the following replies to members questio ns on Domestic Support and Export Subsidies in 
the Agricultural Sector. 
 
 
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 WT/ACC/SPEC/UKR/6 
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 At the request of the Working Party members, in formation was prepared on the level of domestic 
support to agriculture for the period of 2000-2002, which was provided to the WTO Secretariat only 
for information purposes.  That's why we questi on the usefulness of additional discussions on the 
above noted period.  Ukraine wishes to continue  the negotiations on defining the commitments of 
Ukraine on the level of support to agriculture based on the period of 1994-1996 during the next 
Working Party plurilateral meeting on agriculture. 
- Supporting table DS:4
  
Question 1 
We suggest that Ukraine replace the term "18.  All agricultural products" in Supporting Table 
DS:4 with the term "Non-Product Specific Support". 
Answer:  
Ukraine agrees to the proposal of this Member to  make changes in the Supporting Table DS:4, but 
offers somewhat different approach for this purpose: in monitoring support tables for 2000-2002 the 
title of the row "18. All agricultural products" sha ll be changed to "18. Total for all commodities", 
row "19. Current total AMS" changed to "19. Total Non-product-specific AMS from the Supporting 
Table DS:9 below", data from columns 4 and 5 in  row 18 transferred to row "19. Total Non-product-
specific AMS from Supporting Table DS:9 below", add row "20. Total: Current total AMS", to which the level of the current total AMS shall be transferred from row 19.  
Similar changes will be made to document WT/ACC/ SPEC/UKR/1/Rev.8 in consideration of relevant 
numeration of rows in table DS:4 for the basic period of 1994-1996. Ukraine expects that this 
Member will support the aforesaid changes in table DS:4.  
- Supporting table DS:5 
 
 - Eligible Production  
Question 2 
Could Ukraine confirm that the level of eligible production for sugar price-support is the total 
amount of production, as opposed to the government procured volume? 
Answer:  
In fact, the eligible production for sugar price-suppor t is the total sugar produced from sugar beets. In 
the Working Table 1 "Value of Ukrainian Agricultu ral Production" Ukraine will make an informative 
footnote to the row to indicate the total amount of sugar produced from sugar beets with reference to 
the amount of sugar produced from sugar beets a nd the annual value of its production as of 2000, 
2001 and 2002.  WT/ACC/SPEC/UKR/6 
 Page 3 
 
 
 - Supporting Table DS:9  
Question 3 
Partial Reimbursement of Price of Complex Do mestic Agricultural Equipment Could Ukraine 
please indicate if all agricultural sectors are entitled to apply for this subsidy? 
Answer:  
This is correct. All sectors of agriculture may appl y for such subsidy for partial reimbursement of 
price of combines and tractors of all types of agricultural use.  
- Support to Individual farmers (Support to small farms)1 
Question 4 
Could Ukraine provide further details on the nature of this program, including which 
agricultural sectors are eligible to receive this p ayment, if the recipients are required to produce 
a product to receive the payment and whether the payment must be used for a specific purpose? 
Answer:  
Support of agricultural farmers is carried out in accordance with the Law of Ukraine "On Individual 
Farms" No. 2009 of 20 December 1991, the Resolution of the Cabinet of Ministers of Ukraine "On 
the Use of Funds of State Support of Farms" No. 357 of 13 April 2001, and to ensure implementation 
of the state policy of farmers support, creation of st able financial environment for their development. 
The source of financial support of farmers is funds envisaged in the state budget for a relevant year 
for financial support of farmers. The funds administra tor is the Ministry of Agrarian Policy, and the 
Ukrainian Farms Support Fund and its divisions in  the Autonomous Republic of Crimea and oblasts 
distribute and remit relevant funds to farms.  
According to the Resolution of the Cabinet of Mini sters of Ukraine "On the Use of Funds of State 
Support of Farms" No. 357 of 13 April 2001 and the joint Order of the Ministry of Agrarian Policy, the Ministry of Finance and the Ministry of Economy No. 162/426/181 of 17 June 2002 the state budget funds for farms support (except for funds assigned for development of land allocation projects, partial reimbursement of payments of bank loan interests, and par tial reimbursement of purchasing of 
the first tractor, combine, truck, construction of  animal buildings, including the cost of design 
estimates) shall be used on the tender grounds and the revocable basis.  All agricultural sectors are 
eligible to receive such payments. Individual farm s can use such financial support only for production 
of agricultural products and farm activities.  
Money granted under such program on the revocable basis will be removed by Ukraine from table 
DS:9 leaving only the amounts of subsidies granted on the irrevocable basis.  
                                                     
 
1 Small farms with average size equaled 65 hectar es cover 6 per cent of total agricultural land in 
Ukraine.  At the beginning of 2004 year total amount of such small indi vidual entities was equal 43,000 units. 
 WT/ACC/SPEC/UKR/6 
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 - Maintenance of Young Orchards
 
Question 5 
Could Ukraine provide additional information as to which sectors/products receive this 
payment? 
Answer:  
The measure "Maintenance of young orchards" w ill be transferred from table DS:9 "Non-product-
specific AMS" to table DS:7 "Other product-speci fic support" with the total amount under the title 
"Fruit" with no distribution among products covered by  this program such as apples, plums or other 
fruit, as it is impossible to do taking into account th e peculiarities of the procedure of granting funds 
under this program.  
- Accumulation of VAT for Purchases of Inputs for Agricultural Production  
Question 6 
Could Ukraine please indicate which agricultural sect ors are eligible to receive this payment, if 
the recipients are required to produce a pro duct to receive the payment and whether the 
payment must only be used for a specific purpose? 
Answer:  
The force of the VAT accumulation mechanism sh all be applicable to agricultural producers 
irrespective of their specialization, organization and legal form and ownership form, to producers 
registered as VAT payers, and received the amount – from the sale of agricultural products of own 
production and relevant processing pr oducts for the prior reporting (tax) period – that is at least 
50 per cent of the total gross revenue of the enterprise.  
The difference between the amount of VAT received  by agricultural producers from sellers and the 
VAT paid by the former to suppliers shall be tr ansferred by agricultural producers from the current 
account to a special account within the terms esta blished for transfer of the VAT amount to the 
budget.  Funds transferred by agricultural produ cers to a special account shall be used by those 
producers for purchases of inputs for agricultural produc tion.  In the event of misuse, the funds shall 
be seized in favour of the state budget through the stipulated procedure.  
 
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