WT/REG338/R/I  
 
16 February 2016  
(16-0986)  Page: 1/8  
Committee on Regional Trade Agreements  Original: English  
 
UKRAINE-MONTENEGRO IMPLEMENTATION REPORT 
 This Implementation Report has been draf ted in accordance with Article 15 of the 
Transparency Mechanism Decision and following the draft guidelines contained in JOB/REG/4 
issued in January 2013. 
  This report does not prejudge the Parties' po sition on the concept and the duration of the 
implementation periods in FTAs and their relationship to the "reasonable length of time" within the 
meaning of Art. XXIV: 5(c) of the GATT 1994 or "the reasonable time-frame" within Art. V: 1(b) of the GATS.   
_______________ 
  
1  BACKGROUND INFORMATION ON THE AGREEMENT 
1.1.  The Free Trade Agreement between the Go vernment of Ukraine and the Government of 
Montenegro was signed on 18 November 2011 and entered into force on 1 January 2013. 
1.2.  The Agreement covers trade in goods and se rvices, and is based on Article XXIV of GATT and 
Article V of GATS. 
1.3.  Statistical data on trade in goods and se rvices between the Parties, some indications on 
Parties' import coverage after full implementation of the FTA as well as information about trade 
defence measures can be found in Annexes to this report.  
2  PROVISIONS ON TRADE IN GOODS 2.1  Import duties, charges and quantitative restrictions 
2.1.1  Tariffs 
2.1.  Duty-free trade regime is applied to substantial part of trade in goods. 2.2.  No tariff rate quotas are applied. 
2.1.2  Quantitative restrictions 
2.3.  The Parties may apply quantitative restrictions only in accordance with the provisions of 
Article XI GATT 1994.
1 
2.4.  No quantitative restrictions on imports are applied. 
2.1.3  Products excluded from liberalization  
2.5.  Annex I to this Agreement includes a list of exemptions concerning import duties and charges 
applied by Ukraine. According to the list, import  duties are imposed on some meat, livers and 
                                               
1 https://www.wto.org/english/ docs_e/legal_e/06-gatt.pdf  
  https://www.wto.org/english/docs_e/legal_e/gatt47_e.pdf  WT/REG338/R/I 
 
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  other edible offal of swine, pig fat, cuts and offal of the poultry, cane or beet sugar and chemically 
pure sucrose imported from Montenegro. 
2.1.4  Final tariff schedule applied by RTA parties 2.6.  Duty-free trade is implemented for products classified under Chapters 1-97 of the 
Harmonized Commodity Description and Coding System (HS 2007). 
2.2  Export duties, charges and quantitative restrictions 2.2.1  Tariffs 
2.7.  Parties agreed that export duties or taxes and charges of equivalent effect may be applied in 
trade between the Parties. 
2.8.  Ukraine has applied export duties on some live cattle and animal skins (since 1996), 
sunflower seeds (since 1999), some waste and scrap ferrous metal (since 2002) and natural gas 
(since 2008).
2  
2.9.  Also, Ukraine has applied export duties on  some waste and scrap of alloy ferrous metal and 
of nonferrous metal since 2006. According to the Law of Ukraine № 441-V3, this export duty is 
applied irrespective of existing free trade agreements.  
2.10.  However, since 2013 Ukraine hasn't exported such products to Montenegro. 2.2.2   Quantitative restrictions 
2.11.  The Parties may apply quantitative restrictions only in accordance with the provisions of 
Article XI GATT 1994. 
2.3  Regulatory provisions on trade in goods 2.3.1  Rules of origin  
2.12.  Rules of origin in Ukraine-Montenegro bilateral trade were regulated by Rules of Origin and 
Methods of Administrative Co-operation stated in Annex II to this Agreement. 
2.13.  No special references to the WTO Agreement on Rules of Origin are included in the 
Agreement.  
2.3.2  Non-tariff barriers 2.14.  The Parties agreed that all technical norms and rules regarding trade would comply with the 
provisions of the WTO Agreement on Technical Barriers to Trade.
4 
2.3.3  Sanitary and phytosanitary measures 2.15.  The Parties agreed that sanitary and phytosanitary measures would be applied according to 
the WTO Agreement on the Application of Sanitary and Phytosanitary Measures.
5 
                                               
2 http://zakon5.rada.gov.ua/laws/show/180/96-%D0%B2%D1%80   
http://zakon2.rada.gov.ua/laws/show/1033-14   
http://zakon3.rada.gov.ua/laws/show/216-15   
http://zakon0.rada.gov.ua/laws/show/309-17   
3 http://zakon2.rada.gov.ua/laws/show/441-16   
4 https://www.wto.org/ english/docs_e/l egal_e/17-tbt.pdf  
5 https://www.wto.org/ english/tratop_e/s ps_e/spsagr_e.htm  WT/REG338/R/I 
 
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  2.3.4  Trade defence instruments 
2.16.  The Agreement allows for introduction of trade defence instruments. Articles 19-22 of the 
Agreement establish procedure for the application of such measures, which should be the subject of consultations within the Ukrainian-Montenegrin Free Trade Committee. 
2.17.  The Parties may apply antidumping measures only in accordance with the norms of 
Article VI GATT 1994 and the Agreement on the Application of Article VI GATT.
6  
2.18.  The Parties may apply subsidies and countervailing measures only according to norms of 
Article VI GATT 1994 and the WTO Agreement on Subsidies and Countervailing Measures.7 
2.19.  The Parties may apply special safeguards only in accordance with the provisions of 
Article XIX GATT 1994 and the WTO Agreement on Safeguards.8 
2.20.  Information about Ukrainian trade defence me asures can be found in Annex 2 to the report. 
However, products imported from Montenegro were not subject to trade defence measures. 
2.3.5  Balance of payments 2.21.  The Parties agreed to apply import restrictions to safeguard balance of payments in 
accordance with WTO rules. 
2.22.  On 28 December 2014 the Law of Ukraine "On measures concerning stabilization of the 
balance of payments of Ukraine in compliance with  Article XII of the General Agreement on Tariffs 
and Trade 1994" No. 73-VIII
9 and the Law of Ukraine "On Amending the Customs Code of Ukraine 
(concerning stabilization of the balance of payments)" No. 74-VIII10 entered into force. Pursuant to 
these Laws, Ukraine introduced temporary import surcharge of 10% for agricultural goods and 5% for non-agricultural goods, except for essential goods.  
3  PROVISIONS ON TRADE IN SERVICES 
3.1  Scope 3.1.  Chapter III of this Agreement establishes procedures and norms covering trade in services. It 
applies to all services sectors. 
3.2.  The Parties agreed that all domestic regulations affecting trade in services should be 
administered in a reasonable, objective and impartial manner. 
3.2  Regulatory provisions  
3.3.  The Parties committed that Most Favoured Nation (MFN) regime would be applied to all 
services or measures affecting trade in services  without prejudice to Article VII of the GATS.
11 
Annex III of this Agreement includes Lists of MFN exemptions. 
3.4.  The Parties agreed that market access, national treatment, transparency, monopolies and 
exclusive service suppliers, business practices, ba lance of payments, recognition, exemptions and 
additional commitments concerning trade in services should be regulated in accordance with 
norms of the GATS. 
3.5.  The Parties committed not to prevent natural persons from supplying service in accordance 
with their specific commitment. 
                                               
6 https://www.wto.org/english/ docs_e/legal_e/19-adp.pdf   
7 https://www.wto.org/ english/docs_e/l egal_e/24-scm.pdf   
8 https://www.wto.org/ english/docs_e/leg al_e/25-safeg.pdf   
9 http://zakon4.rada.gov.ua/laws/show/73-19   
10 http://zakon2.rada.gov.ua/laws/show/74-19   
11 https://www.wto.org/ english/docs_e/leg al_e/26-gats.pdf   WT/REG338/R/I 
 
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  3.6.  The Parties committed not to restrict pa yments related to trade between the Parties. 
Measures related to current payments concerning the movement of commodities should be applied according to the Agreement of the International Monetary Fund.
12 
3.7.  Annex III of this Agreement includes Sche dules of Specific Commitments taken by Parties 
regarding market access, national treatment and additional issues. 
3.8.  The Parties' terms and conditions of trade in financial and telecommunications services are 
contained in the Annexes IV and V of this Agreement. 
4  OTHER PROVISIONS IN THE AGREEMENT  
4.1  State Trading Enterprises 4.1.  The Parties agreed that rights and obligations towards state trading enterprises would comply 
with the norms of Article XVII GATT 1994 and the Understanding on the Interpretation of 
Article XVII of the GATT 1994.
13 
4.2  Export control 4.2.  No specific commitments regarding export control are included into the Agreement. 
4.3  Transit 
4.3.  The Parties committed to ensure free transit of goods originating from the customs territory 
of another Party in accordance with national legislation of the Parties. 
4.4.  Procedures and conditions of transit are also regulated according to the Agreement between 
the Cabinet of Ministers of Ukraine and the Go vernment of Montenegro on Air Transportation
14 
signed in 2011 and ratified by Ukraine in 2015 and by Montenegro in 2014. 
4.4  Re-exports 
4.5.  No specific commitments regarding re-export are included into the Agreement. 
4.5  Common classification 4.6.  No specific commitments regarding common classification are included into the Agreement.  
4.7.  The most recent commodity classification used by Ukraine and Montenegro is based on 2012 
edition of Harmonized System Nomenclature by World Customs Organization (HS classification). 
4.6  Economic cooperation and capacity building 
4.6.1  Information exchange  
4.8.  The Parties committed to establish a mechanism of information exchange, when it comes to 
dispute settlement mechanism. Information exchange channels are official enquiries to Ministries, meetings of the committee, international organizations and meetings. 
4.6.2  Free Trade Committee 
4.9.  The Parties agreed to establish the Ukraine-Montenegro Free Trade Committee in order to 
monitor realization of the Agreement and work on further improvement of trade and economic 
cooperation. 
                                               
12 https://www.imf.org/extern al/pubs/ft/aa/pdf/aa.pdf   
13 https://www.wto.org/englis h/docs_e/leg al_e/08-17.pdf   
14 http://zakon5.rada.gov.ua/laws/show/892_012   WT/REG338/R/I 
 
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  4.7  Protection of legitimate objectives 
4.10.  The Agreement allows the Parties to apply measures in order to protect their legitimate 
objectives in accordance with the norms of Article XX and Article XXI GATT 1994. 
4.8  Relationship with other agreements third countries 
4.11.  The Agreement does not prevent the Parties from establishing other free trade areas or 
participation in other forms of economic integration and from taking up obligations in compliance with international agreements, if these new relations do not negatively impact the existing trade 
regime between the Parties. 
4.9  Dispute settlement  4.12.  Chapter IV of this Agreement establishes dispute settlement procedures.  4.13.  The Parties have declared intention to avoid disputes in mutual trade. If dispute over 
interpretation and implementation of the provisions  of the Agreement arises, this should be settled 
through consultations. Detailed procedure for Dispute Settlement is explained in Articles 45-54. 
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 WT/REG338/R/I 
 
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  ANNEX 1 
STATISTICS ON TRADE IN GOODS 
Table A1.1: Ukraine: Imports from Montenegro (thousand $) 
Year Total Agricultural products* Non-agricultural products* 
2013 1,131.3 82.6 1,048.7 
2014 1,082.6 1.6 1,081.0 
* WTO definition. 
Source: UN ComTrade.  
 
Table A1.2: Montenegro: Imports from Ukraine (€) 
Year Total Agricultural products* Non-agricultural products* 
2013 5,076,995 562,684 4,514,311 
2014 2,181,585 404,501 1,777,083 
* WTO definition. 
Source: Monstat. 
 
Table A1.3 Ukraine: Exports to Montenegro (thousand $) 
Year Total Agricultural products* Non-agricultural products* 
2013 1,395.5 576.1 819.4 
2014 1,796.4 128.0 1,668.4 
* WTO definition. 
Source: UN ComTrade. 
 
Table A1.4: Montenegro: Exports to Ukraine (€) 
Year Total Agricultural products* Non-agricultural products* 
2013 314,975 58,387 256,588 
2014 149,658 0 149,658 
* WTO definition. 
Source: Monstat. 
 
Table A1.5: Ukraine import coverage after full implementation of the Agreement  
Coverage 2013 2014 
% of tariff lines 97.0 88.9 
% of imports 88.8 65.4 
Note: Line coverage (% tariff lines)  is calculated as duty-free quota-free Ukraine's tariff lines on imports 
from Montenegro divided by total Ukraine's tariff lines on imports from Montenegro. 
 Trade coverage (% imports ) is calculated as duty-free quota-free Ukraine's imports from 
Montenegro divided by total Ukra ine's imports from Montenegro.  
 For calculation of the coverage rates the preferenti al tariffs in force on 1 January of the indicated 
years has been used.  
Source: Ukraine- Montenegro FTA, UN ComTrade.  
 WT/REG338/R/I 
 
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  ANNEX 2 
 
STATISTICS ON TRADE IN SERVICES 
Table A2.1: Ukraine trade in services with Montenegro (thousand US$) 
Services' sectors  Imports Exports 
2013 2014 2013 2014 
Current account 6,537 8,764 6,745 3,753 
Manufacturing services on physical  inputs owned by others 0 0 0 0 
Maintenance and repair services, not included into other categories 0 0 0 0 
Transportation  3,820 3,102 6,674 3,685 
Travel 2,315 5,355 54 19 
Construction services  0 0 0 0 
Insurance services  6 24 - - 
Financial services  - - 0 0 
Royalties and license fees  0 0 0 0 
Telecommunications, computer and information services  0 8 0 - 
Business services  - - 17 49 
Personal, cultural and recreational services  0 0 0 0 
Government services 396 275 - - 
Source: State Statistics Committee of Ukraine. 
 
Table A2.2: Montenegrin trade in services with Ukraine (thousand €) 
Services' sectors Imports Exports 
2013 2014 2013 2014 
Manufacturing services on physical inputs owned by others 0.0 0.0 0.0 0.0 
Maintenance and repair services, not included into other 
categories 0.0 9.7 2.7 4.6 
Transportation  4,785.1 1,402.0 3,321.9 1,274.5 
Travel 7.2 21.2 35,905.7 38,218.7 
Construction services  0.0 11.3 14.6 165.3 
Insurance services  0.0 0.0 0.0 0.0 
Financial services  0.0 0.0 20.2 18.0 
Royalties and license fees  0.0 0.0 0.0 0.0 
Telecommunications, computer and information services  68.6 26.4 3.4 4.5 
Business services  340.1 76.2 33.0 136.4 
Personal, cultural and recreational services  113.0 16.4 15.0 0.0 
Government services 0.0 0.0 0.0 0.0 
Source: CBCG. WT/REG338/R/I 
 
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  ANNEX 3 
TRADE DEFENCE INSTRUMENTS  
Table A3.1: Ukraine: safeguard measures app lied irrespective to the country of origin 
HS 
Nomenclature Code Product description Measure Years 
HS 1996 6804221800 Millstones, grindstones, 
grinding wheels tariff 2005-2009 
HS 1996 6807101000 Articles of asphalt or of 
similar material tariff 2005-2009 
HS 1996 8482109000 Ball bearings tariff 2006-2009 
HS 1996 6002921000; 
6002923000; 
6002929000; 
6002933100; 
6002933300; 
6002933900 Knitted or crocheted fabrics tariff 2007-2010 
HS 1996 5208221500; 
5208221900; 5208229500; 5208229900; 5208290000; 5208321500; 5208321900; 5208329500; 5208329900; 5208390000; 5208521000; 5208529000; 
5208590000 Woven fabrics of cotton tariff 2007-2010 
HS 1996 8539311000 Electric filament or 
discharge lamps tariff 2007-2010 
HS 1996 7304291100 Steel pipes quota 2008-2016 
HS 1996 3605000000 Matches tariff 2009-2012 
HS 1996 7005293500 Sheet glass tariff 2009-2010 
HS 2007 8703221000; 
8703231910 Motor cars tariff 2013-2015 
HS 2012 6911100000 Tableware and kitchenware 
of porcelain tariff 2014-2017 
Source: the official newspaper "Uryadoviy Courier". 
 
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