WT/REG338/M/1  
 
28 July 2014  
(14-4337)  Page: 1/3  
Committee on Regional Trade Agreements 
Seventy-third Session    
 
 FREE TRADE AGREEMENT BETWEEN THE UKRAINE AND MONTENEGRO,  
GOODS AND SERVICES 
NOTE ON THE MEETING OF 23 JUNE 2014 
Chairman: Ambassador Francisco Pirez Gordillo (Uruguay) 
1.1.  The 73rd Session of the Committee on Regional Trade Agreements (hereinafter 'CRTA' or the 
'Committee') was convened in Airgram WTO/AIR/4299/Rev.1 dated 13 June 2014. 
1.2.  Under Agenda Item B.VI of the session , the CRTA considered the Free Trade Agreement 
between Ukraine and Montenegro, (hereinafter "the Agreement"). 
1.3.  The Chairman said that the Agreement ha d entered into force on 1 January 2013. It had 
been notified to the WTO by the Parties on 25 April 2013 under Article XXIV:7(a) of the GATT 1994 and the Understanding on the Interpretation of Article XXIV of GATT 1994 as an Agreement 
establishing a free trade area (document WT/REG338/N/1) and under GATS Article V:7(a) as an 
Agreement providing for the liberalization of trade in  services within the meaning of Article V of the 
GATS (document S/C/N/694). The text of the Agreement was available, together with its Annexes, 
on the Parties' official websites. The Factual Presentation on the goods and services aspects 
(documents WT/REG338/1 and Corrigendum 1 and 2 dated 14 April 2014, 3 June 2014 and 12 June 2014, respectively) had been prepared by the Secretariat on its own responsibility in full consultation with the Parties, in accordance with paragraph 7(b) of the Transparency Mechanism 
for Regional Trade Agreements (document WT/L/6 71). In addition, written questions and replies 
on this Agreement had been distributed in document WT/REG338/2 dated 12 June 2014. He proposed to organize the consideration of the Agr eement by first asking the Parties and then other 
Members to give any general comments and then turn  to the specifics of the Agreement, using the 
Factual Presentation, document WT/REG338/1 to guide the debate. They would then go through the questions and replies document. 
1.4.  The representative of Ukraine said that  the Free Trade Agreement between Ukraine and 
Montenegro of 18 November 2011 had been ratifi ed by the Parliament of Ukraine on 16 October 
2012 and had entered into force on 1 January 2013 for both Parties. The Agreement had been duly notified to the WTO. 
1.5.  The liberalization of the trade regime betw een Ukraine and Montenegro covered substantially 
all trade, was a positive factor in the development of bilateral economic relations and reflected the economic priorities of both countries. It was concluded in line with GATT Art XXIV and GATS Art V. 
It aimed at facilitating trade between the Part ies and promoting closer integration between the 
economies and had substantial sectoral coverage. Ukraine hoped that the potential inherent in the provisions of the Agreement would be implemente d in full, and both Parties would fully benefit 
from it. 
1.6.  Among the objectives of the Agreement were: raising the living standard of the population of 
the two countries; elimination of restrictions on trade in goods, liberalization of trade in services; promoting the harmonious development of economic  relations between the Parties; to contribute 
through the removal of barriers to trade etc. The Agreement covered trade in industrial and 
agricultural goods and services. WT/REG338/M/1 
 
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  1.7.  According to Article 6 the provisions of the Agreement would apply to products originating in 
the Parties classified under Chapters 1 to 97 of HS 2007. Article 7 provided that upon entry into force of the Agreement, the Parties would abolis h all customs duties on imports of products 
originating in Ukraine or in Montenegro covered by  Article 6 except as otherwise provided for in 
the Schedules of Tariff Commitments in Annex I of the Agreement. Under Annex I, Ukraine had 
entered a list of exemptions to its tariff commitm ents, concerning HS Sections I (Live animals and 
animal products) and IV (prepared foods). Montenegro  had no list of exemptions. Article 8.2 of the 
Agreement foresaw that no new customs duties on imports or any taxes and other charges having 
equivalent effect would be introduced by the Parties. With respect to customs duties on exports, Article 9.1 provided that upon entry into force of the Agreement, each Party could apply customs duties on exports of goods originating in Ukra ine or in Montenegro covered by Article 6 in 
accordance with Article XI of the GATT. At the same time the Parties had agreed that Ukraine 
retain its WTO commitments on export duties for oilseeds, live cattle and animal skins according to 
the timetable for phasing in the export duty cuts (Article 9.2). 
1.8.  A separate chapter of the Agreement was de voted to trade in services. Article 25.1 provided 
that the Agreement applied to measures by the Parties affecting trade in services, in respect of all services sectors. The Agreement had provisio ns on technical regulations, sanitary and 
phytosanitary measures, rules of origin, dispute settlement and institutional issues. The 
Agreement provided the basis for further improvements to bilateral trade conditions .  
1.9.  To conclude, Ukraine thanked its partners from Montenegro for the fruitful cooperation during 
the preparation of the Factual Presentation, and ex pressed appreciation for the work done by the 
Secretariat, its high professional standard and fr iendly cooperation. He thanked Members for their 
interest in the Agreement and for their questions, and stood ready to provide further clarifications if necessary. 
1.10.  The representative of Montenegro was pleased to present the Free Trade Agreement 
between the Government of Montenegro and th e Government of Ukraine. She thanked the 
Secretariat and her partners from Ukraine for thei r cooperation during the process of preparing the 
Factual Presentation. She also thanked Thailand and Canada for their questions and constructive 
engagement.  
1.11.  Montenegro reaffirmed its strong support for strengthening a rules-based multilateral 
trading system under the WTO. The Agreement be tween Ukraine and Montenegro had been signed 
on 18 November 2011 in Kiev, in order to promote expansion of trade based on reciprocity and 
comprehensive economic relations, both in good s and services. The Agreement had entered into 
force on 1 January 2013. Its objectives  were: to increase and enhance economic cooperation 
between the Parties and raise the living standards of  the population; to eliminate difficulties and 
restrictions on trade in goods and to liberalize trade in services; to promote the expansion of trade based on reciprocity and thus provide more harmonious development of the economic relations 
between the Parties; to contribute, by the remo val of barriers to trade, to more balanced 
development and expansion of regional  trade; and to promote trade and cooperation between the 
Parties in third countries. 
1.12.  The Agreement contained the following chapters (apart from general, institutional and final 
provisions): trade in goods, trade in services and dispute settlement. Concerning market access 
for goods, the Agreement covered agricultural an d non-agricultural products. Upon entry into 
force, all customs duties on imports of products originating in the Parties had been abolished, 
except a few exceptions by Ukraine. The Chapter on trade in services covered all services sectors. 
The commitments undertaken were mostly based on WTO Schedules of Commitments, except a few distinctions in the case of Montenegro, which were actually improvements in the sense of 
liberalizing some of the GATS limitations. 
1.13.  To ensure full and effective implementation  of the provisions of the Agreement, the Parties 
had established a Free Trade Committee. Its tasks were to supervise and review the implementation of the Agreement and to keep under  review the possibility of further removal of 
barriers and other restrictive measures on trade between Ukraine and Montenegro.  
1.14.  In concluding she thanked again the Secretariat for its continuous support in the process 
and Members for their interest.  WT/REG338/M/1 
 
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  1.15.  The representative of the United States thanked the Parties and the Secretariat for their 
hard work and excellent presentations. He commended the Parties for the high percentage of tariff 
elimination under the Agreement. His delegation greatly appreciated those efforts. He also drew Ukraine's attention to Table 5.1 and asked that Ukraine notify any non-notified agreements.  
1.16.  The Chairman said that consideration of the Goods and Services Aspects of the Free Trade 
Agreement between Ukraine and Montenegro had allowed the Committee to clarify a number of 
questions and the oral discussion of this RTA could be concluded in accordance with paragraph 11 
of the Transparency Mechanism. If any delegation  wished to ask follow up questions they were 
invited to forward submissions in writing to the Secretariat by 30 June 2014 and Parties were 
asked to submit replies in writing by no later than 14 July 2014. In accordance with paragraph 13 of the Transparency Mechanism all written submissi ons, as well as minutes of this meeting would 
be circulated promptly, in all WTO official languages, and would be made available on the WTO 
website.  
1.17.  The Committee took note of the comments made. 
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