WT/TPR/M/334  
6 June 2016  
(16-3005)  Page: 1/47  
Trade Policy Review Body 
19 and 21 April 2016   
 
  TRADE POLICY REVIEW 
UKRAINE  
MINUTES OF THE MEETING 
Chairperson: Ms Irene Young (Hong Kong, China) 
CONTENTS 
 
1  INTRODUCTORY REMARKS BY THE CHAI RPERSON ....................................................... 2  
2  OPENING STATEMENT BY THE REPRESENTATIVE OF UKRAINE ..................................... 4  
3  STATEMENT BY THE DISCUSSANT ................................................................................ 9  
4  STATEMENTS BY MEMBERS ........................................................................................ 13  
5  REPLIES BY THE REPRESENTATIVE OF UKRAINE AND ADDITIONAL 
COMMENTS ..................................................................................................................... 35  
6  CONCLUDING REMARKS BY THE CHAI RPERSON ......................................................... 46  
 
 
Note: Advance written questions and additional questions by WTO Members, and the replies 
provided by Ukraine are reproduced in document  WT/TPR/M/334/Add.1 and will be available online 
at http://www.wto.org/english/ tratop_e/tpr_e/tp_rep_e.htm. WT/TPR/M/334 • Ukraine 
 
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  1  INTRODUCTORY REMARKS BY THE CHAIRPERSON 
1.1.  The first Trade Policy Review of Ukraine was held on 19 and 21 April 2016. The Chairperson, 
Ms. Irene Young (Hong Kong, China), welcomed the delegation of Ukraine headed by Mrs Natalia 
Mykolska, Deputy Minister of Economic Development and Trade; the rest of the delegation of 
Ukraine; and the discussant, Ambassador Remigi Winzap (Switzerland). 
1.2.  The Chairperson recalled the purpose of the Tr ade Policy Reviews and the main elements of 
the procedures for the meeting. The report by Ukraine was contained in document WT/TPR/G/334 
and that of the WTO Secretariat in WT/TPR/S/334. 
1.3.  Before proceeding to the review on Ukraine,  the Chairperson informed Members that the 
United Nations Industrial Development Organization (UNIDO) had requested attendance at some upcoming TPRB meetings as an observer on an ad hoc basis. Members recalled that UNIDO had 
attended other TPR meetings before, for example,  those of Cabo Verde and the Southern African 
Customs Union last year. This time, UNIDO had asked to participate, also as an ad hoc observer, in the upcoming Trade Policy Reviews of the following countries: Malawi; Honduras; Albania; 
United Arab Emirates; the Democratic Republic of Congo; Zambia; China; Sierra Leone; Sri Lanka: 
and Guatemala. UNIDO had been working closely with these countries recently and was designing Trade Capacity Building Programmes in collaboration with them. To allow Members some time to 
consider this request, the Chairperson intended to deal with it at the end of the meeting on Day 2, 
on Thursday 21 April, when Members would be invited to confirm agreement. Meanwhile, if Members had any questions about UNIDO’s request and the participation of ad hoc observers at 
TPR meetings, they could contact the Secretariat. 
1.4.  Questions by the following delegations had been  submitted in writing before the deadline and 
had been transmitted to the delegation of Ukraine: El Salvador; Canada; Australia; United States; Mexico; Singapore; EU; Chinese Taipei; Colombia, Argentina; China; Switzerland; Norway and 
New Zealand. The following delegations submitted written questions after the deadline: Brazil; the 
Republic of Moldova; the Russian Federation; Ec uador; Turkey and Thailand. These questions had 
also been transmitted to the delegation of Ukraine. 
1.5.  Ukraine joined the WTO in May 2008 in what ha d been a rather benign external environment 
until then. Real GDP growth had averaged 7% pe r year since the start of the millennium. Then 
came the global financial crisis, hitting hard Ukraine with a sharp drop in GDP and capital flight. The subsequent economic recovery was also quit e pronounced, but unfortunately short-lived. The 
Ukrainian economy slipped back into recession in the second half of 2012 and returned to growth 
in 2013. However, in the last two years, political instability, followed by armed conflict, had taken 
a heavy toll.  
1.6.  The economic environment had therefore been ch allenging - to say the least - over the last 
eight years. How had this affected Ukraine's participation in the WTO? Well, Ukraine acceded to the WTO with wide-ranging commitments in goods an d services. All tariffs were bound, at slightly 
more than 10% on average in agriculture and just  6.1% overall. As Ukraine already had a highly 
liberalized trade regime prior to joining the WTO, its transitions to the WTO rulebook were few and quick. It also readily joined the Information Technology Agreement upon accession and the Agreement on Trade in Civil Aircraft two years later. Ratification of the Agreement on Trade 
Facilitation was done last year, and just on 18 Ap ril 2016, Ukraine also deposited its instrument of 
acceptance of the Agreement on Government Procurement. So, one could see that Ukraine was really an active participant in the WTO, and one that was generally in favour of further market 
liberalization within the WTO framework. 
1.7.  Ukraine had also undertaken a number of trade-related domestic reforms since WTO 
accession, notably by promulgating a new Tax Code in 2010 and a new Customs Code in 2012. 
The Association Agreement with the EU set a detailed agenda for future reforms as Ukraine aligned 
with the EU acquis including in areas such as TBT, SPS and the protection of intellectual property rights. Initiatives had been launched to reform the large state owned sector, spanning from strengthened corporate governance to increased transparency. The Government also recognized 
corruption as an issue that required serious attention.  WT/TPR/M/334 • Ukraine 
 
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  1.8.  Ukraine's accession package therefore provided the foundation for an open, liberal, 
transparent and predictable trade regime. However,  from the advance questions, the Chairperson 
noted that quite a number of Members were concerned about the predictability being undermined by Ukraine’s resort to import surcharges more than  once; its attempt to renegotiate a host of tariff 
concessions in 2012; the temporary import quotas on coke and bituminous coal; and temporary 
export restrictions on grains. With regard to transparency, several Members wished to see Ukraine filing more timely notifications, in particular for, but not limited to, domestic support for 
agriculture. And, in addition to questions about alleged discriminatory treatment affecting bilateral 
trade, concerns had also been expressed with regard to measures with multilateral effects, such as restrictions on foreign investment in services sectors, the ten-year export ban on unprocessed timber, local content provisions, and minimum wholesale and retail prices for certain alcoholic 
beverages.  
1.9.  Despite the adoption of a new Customs Code, some Members reported that 
internationally-accepted practices were not followed across all customs offices; declared customs 
values were frequently rejected; and there were concerns that new "benchmark" rules implied 
some form of reference pricing. Noting that Ukraine had begun to implement its Association Agreement with the EU, some Members had stressed their preference for Ukraine to adopt 
international, rather than regional, TBT and SPS standards.  
1.10.  Regarding specific trade sectors, the Chairperson mentioned in particular the agricultural 
sector, which, due to its huge size, had the potential to affect the world markets for several commodities, and was therefore the focus of many questions. Issues raised by Members included 
the special VAT regime for agricultural producers, delays in the reimbursement of VAT levied on 
exports, market interventions by the Agrarian Fu nd, exports of state-owned enterprises, and the 
sugar regime. 
1.11.  The more than 400 questions of course cove red much more than what the Chairperson 
highlighted above. She invited Members to discuss in  greater detail issues of interest to them and 
of systemic importance to the multilateral tradin g system. Looking forward to a fruitful exchange, 
the Chairperson paused and gave the floor to Ukraine for their introductory statement. WT/TPR/M/334 • Ukraine 
 
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  2  OPENING STATEMENT BY THE REPRESENTATIVE OF UKRAINE 
(MRS NATALIA MYKOLSKA) 
2.1.  It is my great pleasure to be representing  Ukraine in its first WTO Trade Policy Review. 
Ukraine considers this Review to be an opport unity to raise WTO Members' awareness of the 
changes that have occurred in Ukraine's foreign trade regime since its accession to the WTO in 
2008, and more importantly, those after the Revolu tion of Dignity in 2013 as well as to the 
challenges faced by Ukraine. 
2.2.  Please allow me to start by expressing our sincere appreciation to the WTO Secretariat's team 
for their work and for the assistance they had prov ided to us during the preparation of our first 
Review. I would also like to thank all WTO Members for their active participation in this process. We appreciate your interest and we have already provided answers to all questions submitted two 
weeks prior to today's meeting, and we will put our best efforts to respond to the additional 
questions received after the deadline as soon as possible. The number of submitted questions (more than 400) reassures us about WTO Members' interest in and support of the progress made 
by Ukraine in reforming its trade regime.  
Introduction 2.3.  Our Government recognizes the importance of trade and trade-related policies in the 
country's economic and social development, and reaffirms Ukraine's full commitment to the 
international trade rules and principles as embodi ed in the WTO agreements. In spite of various 
regional, domestic, economic and political challenges, Ukraine is exerting its best effort to further reform the country's trade and investment regime in a WTO-consistent manner with the aim of 
creating a more favourable business environment. 
2.4.  Over the last few years, our country has undergone critical developments, including a severe 
economic and trade crisis, mainly due to the occupation of Crimea, the military aggression in 
certain areas of Donetsk and Luhansk regions of Ukraine, the subsequent loss of production 
capacity in the conflict area together with th e WTO-inconsistent trade aggression of a major 
regional trading partner. 
2.5.  Notwithstanding all of these political and economic challenges, our Government has been 
continuously building up an open market economy, strengthening the rule of law, and increasing transparency with the aim of achieving macroeconomic stability and sustainable growth. 
2.6.  As it was mentioned, since the accession, we have enacted new Customs and Tax Codes, 
significantly advanced Ukraine's harmonization with international standards, certification systems, 
and sanitary and phytosanitary requirements. We have improved Ukraine's intellectual property 
regime. In addition, we have reformed the government procurement system in accordance with 
the WTO Revised Government Procurement Agreement (GPA).  
2.7.  In 2015, Ukraine ratified the WTO Agreement on Trade Facilitation and notified the WTO 
hereof. In March 2016, Ukraine deposited its instru ment of acceptance of the Protocol Amending 
the TRIPS Agreement and yesterday Ukraine submitted to the WTO the instrument of accession to 
the GPA. 
2.8.  In order to deepen integration and strengthen cooperation with the key trading partners, 
Ukraine has concluded free trade agreements with the EFTA States, the CIS countries, 
Montenegro, and the European Union. We have recently concluded the FTA negotiations with 
Canada and are currently in negotiations with Israel and Turkey. 
2.9.  Our Government remains focused on enhancing economic reforms and market liberalization, 
raising living standards, integrating into regional and global value chains and developing Ukraine's 
unique industrial, agricultural, scientific, technological, intellectual, and cultural capacity and potential.  
2.10.  To support these goals, Ukraine has already launched broad-based reforms covering the 
judicial system, law enforcement, the public servic e, state-owned enterprises, technical regulation 
system, customs and taxation regimes. The basic principles underpinning our economic reforms WT/TPR/M/334 • Ukraine 
 
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  and Ukraine's future development are the rule of law, fair competition, no tolerance to corruption, 
protection of private property rights and a small,  but efficient public administration. The Ukrainian 
Government is committed to implement reforms to further improve its business and investment climate. 
Macroeconomic overview 
2.11.  Regarding Ukraine's macroeconomic situation, negative trends have prevailed in Ukraine 
since its WTO accession mainly due to its significant vulnerability to external economic conditions 
and its low domestic demand. In 2014-2015, the count ry entered into an even deeper crisis. This 
was due to the fall in the external demand for Ukraine's exports, the decline in investment and the reduction of domestic consumer demand. The occupation of the Autonomous Republic of Crimea and the military aggression in certain areas of Donetsk and Luhansk regions led to a further 
deterioration of Ukraine's macroeconomic fundamenta ls. As a result, the GDP fell by 6.6% in 2014 
and by 9.9% in 2015. However, at the end of 2015, we saw the first signs of macroeconomic 
stabilization and thus, we forecast that GDP will  grow by 1% in 2016, by 3% in 2017, and around 
4% annually for the period of 2018-2019 under its positive scenario. 
2.12.  Industrial output decreased by 10.1% in 2014 and by 13.0% in 2015 due to cross-industrial 
and logistics problems, significant loss of production in Eastern Ukraine; a low external demand, 
worsened by trade restrictions by the Russian Federation; and unfavourable commodity prices in 
the world markets. 
2.13.  Ukraine's economy is also characterized by a high dependence on export performance. In 
2015, the value of the Ukrainian export and im port flows dropped considerably by 26.8% 
compared to 2014. Exports declined from US$64.1 billion in 2014 to US$46.6 billion in 2015. 
Imports dropped significantly from US$65.2 bi llion in 2014 to US$47.7 billion in 2015. These 
figures excluded the occupied Autonomous Republic of Crimea, Sevastopol City and conflict zone in 
some parts of Eastern Ukraine.  
2.14.  In 2015, Ukraine exported goods and services to 210 countries. It means that we are 
covering all WTO Members plus additional non WTO Members. The top-5 trading partners were the 
European Union, the Russian Federation, Turkey, China and Egypt. These countries collectively 
amounted to more than 60% of all exports. On the other hand, Ukraine's export is expanding to 
many new countries and destinations. 
2.15.  Ukraine's main export items are agricultural products and foodstuffs, metallurgical, mineral 
products, products of chemical, light industries , wood and paper. Ukraine's exports of goods 
amounted to 84.7% of its total exports in 2015. 
2.16.  Ukraine's agricultural exports were also affected by negative factors and trends, exports 
were supported by high agricultural harvest and liberalized access to the EU market. The share of 
agricultural exports amounted to 38.3% in 2015. The Government currently implements a structural reform of the agriculture, which is focused on the future development of comprehensive 
legislative amendments and regula tory preconditions aimed to form the basis for a sharp quality 
growth. This system includes: resolving the issue of private ownership of agricultural land; a system of tax incentives for the development of the processing industry and agro-IT; a programme 
of systemic measures to promote Ukrainian goods in promising foreign markets; a programme to 
protect soil fertility and environmental safety measures; the active programme for the 
development of agricultural cooperation. Besides, we bring our current system into full compliance with international requirements to ensure safety and quality of food products of a new generation. 
2.17.  The structure of services exports remained mostly unchanged since Ukraine's accession to 
the WTO with transport services, telecommunicati on, computer and IT services, processing of 
material resources and business services being the main services traded. As an example, Ukraine's 
IT services and software R&D sector is growing every year and has continued to become a 
propelling force in terms of economic stability, employment and trade. Ukraine has one of the largest and fastest-growing numbers of IT professionals in Europe.  
2.18.  There was some improvement in the key indica tors of economic development in 2015 due to 
gradual recovery of the production activity. In 2015, Ukraine's balance of trade recorded a surplus WT/TPR/M/334 • Ukraine 
 
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  of US$5 billion. Merchandise trade balance recorded  a surplus of US$0.6 billion versus a deficit of 
US$0.527 billion in 2014. 
2.2  Deregulation  
2.19.  Deregulation is currently among one of the top priorities for the Ukrainian Government with 
the ultimate goal to create favourable conditions for business and to increase foreign investment 
inflows into the country. Since its accession to the WTO, Ukraine has already improved its ranking in World Bank "Doing Business" by 43 positions. 
2.20.  In particular, in 2014–2015, the regulatory in terference was drastically reduced, among 
other, in the following areas: 
 number of various permitting documents was decreased by half;  
 number of activities subject to licensing decreased by 1/3; 
 mandatory certification was cancelled for 90% of products, including mandatory certification 
of new cars which was a major point of concern for a lot of WTO Members; 
 quarantine certificates were abolished and th e timeframe for the issuance of phytosanitary 
certificates was significantly reduced; 
 number of required administrative services has been reduced from 3,000 to about 500, 
more than 600 single window offices have b een opened throughout the country, and the 
new State Portal of e-Services ( http://www.poslugy.gov.ua/ ) has been launched to improve 
quality, speed and transparency of intera ctions between business and state bodies; 
 online registration of a business, which takes just up to 2 days, has been launched. 
2.21.  Moreover, the Government has adopted an Action Plan on Deregulation aiming to further 
eliminate excessive regulation and administrative burden, improve technical regulations and 
licensing procedures, simplify customs and tax regulation and eliminate corruption. In addition, the Government adopted a roadmap "Doing Business-2017" that envisages 57 steps that would enable 
Ukraine to enter the top-50 ranking in 2016, and the top-30 in 2017.  
2.22.  In order to facilitate reforms and the deregulation process, the Better Regulation Delivery 
Office and the Council of Business-Ombudsman have been established. The Better Regulation 
Delivery Office (BRDO) is a non-governmental inde pendent agency that works in collaboration with 
businesses, various agencies, and ministries to tack le issues of regulatory environment in order to 
eliminate barriers for business and boost economic growth of Ukraine. 
Tax and customs reforms 
2.23.  In order to create a more favourable tax environment, the Government of Ukraine aims to 
create a new tax system based on the principles of consistency, transparency, neutrality, responsibility, solvency, investment attractiveness and efficiency. In particular, the new tax reform 
reduces the tax burden from payroll taxes; creates tax incentives so that companies move out of 
the shadow economy; simplifies tax legislation; and creates equal, competitive conditions for business activities by eliminating any tax preferences.  
2.24.  As mentioned, Ukraine has adopted new Customs and Tax Codes that incorporate the best 
international practices.  
2.25.  The number of taxes and fees has been reduce d, and their rates decreased, e.g. in 2016 
payroll tax halved from 41% to 22%. A transparent system of electronic administration of VAT and 
excise on fuel has been introduced, eliminating opportunities for fraud and tax evasion. Besides, in 
2015, long-term issue of VAT refund arrears was eliminated.  
Reform of SOEs 
2.26.  In 2015, Ukraine launched significant reforms of SOEs so as to create a healthy and 
transparent SOE's management by implementing international best practices, increasing the efficiency of the SOEs, enhancing their corporate governance, and attracting investment. The 
reform includes two main directions: improvement of the SOEs efficiency and privatization of the 
non-strategic SOEs.  WT/TPR/M/334 • Ukraine 
 
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  2.27.  As of 2016, the Government's programme provides for transparent and open privatization of 
over 300 SOEs. 
Reform of the governme nt procurement system 
2.28.  The aim of the government procurement reform in Ukraine is to create transparent, 
non-discriminatory, non-corrupt and easy to monitor system. 
2.29.  Ukraine has made all necessary amendments to bring its procurement legislation into 
compliance with the WTO Agreement on Government Procurement (GPA) rules and the EU 
directives on public procurement. On 1 April 2016, the new Law "On Public Procurement" entered 
into force that made all central executive bodies transfer to e-procurement system "Prozorro"; and starting from the 1 August 2016, all public procurement procedures will be carried out through Prozzoro system and electronic appeal. 
2.30.  As noted earlier, having completed all internal ratification procedures regarding the WTO 
GPA, on 18 April 2016 Ukraine submitted the releva nt instrument of acceptance to the WTO.  
2.31.  Ukraine believes that participation in the GPA will help Ukraine to further strengthen good 
governance in the area of public procurement,  eliminate corruption, the transparency of the 
government procurement practices and modernize relevant processes. 
Technical regulations system reform 
2.32.  Ukraine has brought its legislation into compliance with all the substantive provisions of the 
WTO Agreement on Technical Barriers to Trade, including its procedural and transparency requirements. 
2.33.  As of 2015, the mandatory certification of food products, with the exception of tobacco 
products, is no longer in place and, by 2018 the certification regime will be replaced with the 
conformity assessment procedures.  
2.34.  The main objective of future reforms of the te chnical regulation system is transition from 
the post-Soviet system of standardization based on burdensome interstate standards (GOST) to 
the system based on up-to-date regulations, st andards and more trade liberalizing methods of 
conformity assessment. The main tasks ahead of us are to harmonize the system with 
international and EU requirements, develop and im plement new technical regulations, create an 
electronic database. 
Trade-related intellectual property rights 2.35.  In the area of trade-related intellectual property (IP) rights, Ukraine is committed to fully 
comply with the provisions of the TRIPS Agreemen t. Ukraine has adopted relevant amendments to 
related laws and regulations in the intellectual property field, as well as to the Civil, Criminal and Custom Codes with a view to completing Ukrainian's IP rights legal framework.  
2.36.  The main challenges before the Government are to fully comply with the IP requirements 
under the EU-Ukraine association agreement, improve the system of collective management of copyrights, reduce software piracy in the government agencies, and combat Internet piracy. 
2.37.  Ukraine realizes that IP reforms entails more effective implementation of the WTO 
standards, specifically the provisions of Part III of the TRIPS Agreement in relation to civil, legal and administrative procedures, legal defence instruments, precautionary measures and criminal procedures as well as the implementation of the relevant provisions of the EU-Ukraine association 
agreement. 
Conclusions 2.38.  Ukraine is on the path of macroeconomic stabilization and structural reforms. The 
Government of Ukraine has launched unprecedented structural reforms to create a solid platform 
for future sustainable growth.  WT/TPR/M/334 • Ukraine 
 
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  2.39.  We are determined to successfully pursue further reforms to increase trade and investment. 
Building export capacity and integrating into regi onal and global value chains will be top of the 
Government's priorities. 
2.40.  Thus, Ukraine is committed to an open trade policy, full adherence to WTO principles and 
rules, trade facilitation, and deeper and broader cooperation with our WTO trading partners. 
2.41.  Finally, may I say that our delegation anticipates a productive and constructive trade policy 
review process over the next couple of days in a constructive dialogue with our discussant, 
Ambassador Winzap, as well as with other WTO Members. Your input is especially valuable to us as 
we plan our future reforms. Thank you. WT/TPR/M/334 • Ukraine 
 
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  3  STATEMENT BY THE DISCUSSANT 
3.1.  I am honoured to be the discussant for this first Trade Policy Review of Ukraine. I would have 
liked to start my intervention by talking a little bit about Ukraine's great boxing champions, the Klitschko brothers, or about outstanding football players like Andrij Schewtschenko, but 
unfortunately, I have limited time assigned. Therefore, as an introductory remark, I would just like 
to acknowledge and express my respect for the many challenges Ukraine has had to face since its accession to WTO, particularly in the last couple of years.  
3.2.  Ukraine is one of the largest countries in Europe, and its territory has been inhabited since 
32,000 BC. Ukraine is also among the most populous  countries in Europe and has a highly skilled 
and educated population. Ukraine is a global br eadbasket with extensive, fertile farmlands. 
Agricultural products occupy the first place in Ukraine's exports, in particular the oilseeds, grains 
and poultry sectors. The diversified economy of Ukraine includes an important services sector and 
a large industrial sector. The main services exports are transportation (in particular pipeline transport services); telecom, computer and inform ation services; and other business services. In 
the industrial sector, the food industry has overtaken machine building, metallurgical and chemical 
industries in terms of output. Another feature of Ukraine is its large public sector, accounting for about 37% of GDP. The state-owned sector is the largest employer in Ukraine. 
3.3.  In my presentation, I will first recall the major economic challenges which Ukraine faced 
during this review period and the measures taken by the Government to respond to these challenges. Second, under the heading "A best in class WTO-Member, but not perfect", I will highlight some features of Ukraine's commitments in WTO and I will also shed some light on 
concerns of Members. I will finish my interv ention by highlighting some areas Ukraine could 
possibly give some particular attention in the years ahead. 
3.4.  Ukraine faces major challenges. Besides problems which can be traced back many years (in 
particular corruption, mismanagement, lack of economic growth, currency devaluation, and 
difficulties to secure funding from international markets), the global financial crisis in 2008-09 led 
to a deep recession in Ukraine. In the aftermath of the financial crisis, global commodity prices 
decreased severely. After a short economic rebound in 2010-2011, fostered by the benefits of 
currency depreciation and investment related, inter alia , to the organization of the Euro 2012 
football championships, Ukraine was, by 2013, affected  by civil unrest, political instability, military 
conflict, and by deteriorating trade relations with  the Russian Federation. Tourism declined sharply 
after the crash of a Malaysian Airlines plane in July 2014. Furthermore, in 2014, the economic and 
political situation led to a banking crisis with a large outflow of deposits and numerous banks not meeting regulatory requirements anymore. 
3.5.  In this very difficult period, Ukraine took an important number of measures. Within the 
framework of the Programme of Economic Reform s of the President for 2010-14, there was a push 
on public investments and on improvements in the business environment. A new Tax Code entered 
into force in 2010, which lowered the corporate income tax and VAT rates. A new Customs Code 
was adopted in 2012, streamlining the customs procedures; and Ukraine's double-taxation agreement with Cyprus was amended in an effort  to address tax evasion. A pension reform was 
passed increasing the number of contributory years for pension eligibility. In 2014, the National 
Bank of Ukraine introduced a gradual transition to a flexible exchange rate mechanism, in parallel 
with currency and capital restrictions. In December 2014, the Government approved a temporary import surcharge for balance of payments reasons. During these years, the Ukrainian Government 
also arranged several financial stab ilization programmes with the IMF. 
3.6.  On 1 January 2016, the "Deep and Comprehensive Free Trade Area Agreement" (DCFTA) 
between Ukraine and the EU entered provisionally in to force, establishing a free trade area over a 
transition period of a maximum of 10 years. The DCFTA represents a comprehensive reform 
package, with Ukraine aligning its standards, technical regulations as well as SPS and animal welfare legislation to those of the EU. The DCFT A furthermore provides for mutual rights of 
establishment in all sectors, and intellectual property protection to be based on EU rules. 
3.7.  As a consequence of the EU-Ukraine FTA and the severe deterioration in bilateral trade 
relations with the Russian Federation, a redirection of Ukrainian exports away from the Commonwealth of Independent States (CIS) to the EU and Asia has taken place. The promotion of WT/TPR/M/334 • Ukraine 
 
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  exports to Asia is part of the Government's strategy to restore the role of Ukraine as a transport 
hub on the route from Europe to Asia. The shift in the direction of exports is also mirrored by shifts in capital flows, with the EU now accounting for about 78% of FDI flowing into Ukraine, whereas 
90% previously originated in the Russian Federation. 
3.8.  Ukraine not only has an Association Agreement with the EU, it has also concluded a number 
of Free Trade Agreements since its WTO accession, inter alia,  with the EFTA States, the CIS 
countries, as well as with Montenegro. Ukraine furthermore negotiated a comprehensive FTA with 
Canada, which was initiated in July 2015 but has yet to enter into force. Ukraine is currently 
engaged in FTA negotiations with Serbia, Israel and Turkey. 
3.9.  In respect of investment, Ukraine's basic legal framework dates back to the 1990s, but has 
undergone amendments since then, inter alia , by easing conditions to get businesses started in the 
country. 
3.10.  Regarding the trade-related intellectual property regime, Ukraine has since acceding to the 
WTO in 2008 joined the WIPO Singapore Treaty, the Strasbourg Agreement, the Locarno 
Agreement, and the Vienna Agreement. A few weeks ago, Ukraine also notified its acceptance of 
the Protocol amending the TRIPS Agreement.  
3.11.  According to the Secretariat report, it seems that these measures have had a certain 
impact. The IMF sees "signs of stabilization emerging", and the economic decline may have 
bottomed out in 2015.  
3.12.  At present, the Government is in the process of tackling energy subsidies and the related 
Naftogaz losses and arrears, which significantly contributed to its rising fiscal deficit.  
3.13.  Now, let me turn more specifically to WTO matters, which I would like to put under the title: 
Best in class WTO Member, but not perfect. 
3.14.  After decades of centrally planned industrial development within the Soviet Union, Ukraine 
engaged vigorously on a reform path. Accession to the WTO and negotiations with the 
European Union formed part of a policy to push domestic reforms.  
3.15.  Ukraine acceded as the WTO's 152nd Member on 16 May 2008. It made wide-ranging 
commitments on market access for goods and services. It joined the Information Technology 
Agreement upon accession. Since then, Ukraine also joined the plurilateral Agreement on Trade in 
Civil Aircraft in 2010; it ratified the WTO Agreement on Trade Facilitation in December 2015, and I particularly welcome the news that Ukraine has joined the plurilateral Agreement on Government 
Procurement yesterday. 
3.16.  Ukrainian tariffs are generally low – nearly 38% of tariff lines have no import duty on an 
MFN basis. All of Ukraine's tariff lines are bound, and bindings are only slightly over the applied 
rates. The simple average bound rate is 6.1%; 10.8% for agricultural products and 4.9% for 
manufactured goods. Most tariffs are bound on ad valorem  terms.  
3.17.  Since joining the WTO, Ukraine has provided more than 460 notifications relevant to its 
WTO obligations on all aspects of its membership. 
3.18.  Since 2010, Ukraine has also been using the WTO Dispute Settlement Mechanism. It has 
been involved in seven cases – in four cases as a complainant and three as a defendant. Ukraine has also reserved its rights as a third party or joined the consultations in respect of 10 disputes 
involving other WTO Members. 
3.19.  In spite of these facts and its commitment, Ukraine is not a perfect WTO Member. Let me 
explain. 
3.20.  Other Members have been questioning in particular two moves by Ukraine. 
3.21.  In the first instance, Ukraine submitted a list comprising 371 tariff lines for renegotiation 
under GATT Article XXVIII:5 in August 2012.  WT/TPR/M/334 • Ukraine 
 
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  3.22.  GATT Article XXVIII was not meant to provide for unbinding large parts of tariff 
commitments, particularly not when these had been negotiated only a few years earlier during accession. In my perception, it was appreciated by WTO Members when Ukraine withdrew that list in October 2014. Perhaps, it was actually to be expected of a WTO-Member.  
3.23.  The second instance concerns Ukraine's adoption of surcharges. In March 2009, Ukraine had 
introduced a 13% import surcharge on certain goods, which was eliminated in two stages later that year. 
3.24.  The WTO Committee on Balance of Payments (BOP) Restrictions concluded that Ukraine's 
BOP situation at that time did not justify the imposition of such measure. 
3.25.  In December 2014, Ukraine's Parliament passed legislation introducing once again – but this 
time temporarily - an import surcharge of 10% on agricultural products and 5% on industrial 
goods. The legislation entered into force on 25 February 2015 and remained in place until the end 
of the year. 
3.26.  Through such measures, the predictability of Ukraine's import regime, a major achievement 
of WTO accession, suffered important setbacks. It would certainly be of interest for Members to 
know from Ukraine whether all import surcharges have been removed by now or whether some are still in effect.  
3.27.  Looking at the questions Members have submitte d in the frame of this review, I see some 
further areas of concern of Members, in particular in regard of the implementation of Ukraine's trade policy.  
3.28.  Several Members mentioned difficulties encountered with the treatment of goods at 
customs, in particular with customs valuation and VAT reimbursement. 
3.29.  During the accession negotiations, Ukraine had undertaken to provide periodic reports on 
progress in privatization as well as on other issues related to economic reforms, but no such 
reports seem to have been provided so far. 
3.30.  Under the Working Party on State Trading Ente rprises, notifications have been regularly 
provided, but only in respect of one state enterpri se – "Ukrspyrt". Are there no other State Trading 
Enterprises on which Ukraine should report? 
3.31.  Members are looking forward to study the responses by Ukraine on these and other 
concerns which they raised in their questions in the frame of this TPR.  
3.32.  Now, let me turn to some areas for particular policy attention in the years ahead. 
3.33.  Ukraine has an extensive public sector, the re f o r m  o f  w h i c h  a p p e a r s  t o  b e  h a m p e r e d  b y  
vested interests and corruption. Transparency International ranks Ukraine in its "Corruption 
Perception Index" as number 130 out of 167 count ries. The sudden resignation of Ukraine's then 
Minister of Economy and Trade in February - according to the international media because he 
declined "to serve as a cover-up for covert corruption" - certainly further highlighted the issue. 
3.34.  Against this background, it is positive that in its report Ukraine states that it aims at 
eliminating corruption and that it has taken a series of measures, including several anti-corruption 
laws and the creation of two institutions: the National Anti-Corruption Bureau and the National Agency for Preventing Corruption. This fight certainly will continue to require particular attention in the coming years.  
3.35.  It also seems that Ukraine continues to host some of the largest digital pirate sites in the 
world. Cybercrime and cybersecurity represent a challenge that should be tackled urgently if Ukraine is to become an attractive location for doing business.  
3.36.  Some 3,500 enterprises remain under public ownership. The economic performance of many 
State Trading Enterprises (SOEs) is poor and their operational losses weight heavily on the state budget. It would seem, therefore, advisable to pu rsue with determination the reform agenda and WT/TPR/M/334 • Ukraine 
 
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  the objectives of improved efficiency and transparency of SOEs management, including in 
advancing the privatization of State Trading Enterprises.  
3.37.  Ukraine is levying different export duties, inter alia , on live cattle, hides, oilseeds and scrap 
metal. Export duties were also applied tempor arily in the second half of 2011 on wheat and 
meslin, emmer wheat, maize, and barley. As the severe food price spikes of 2007/2008 and 2011 
have shown, interventions to reduce exports ar e an important factor exacerbating the upward 
dynamic of prices in international markets. They further aggravate already serious consequences 
of high prices on food security, particularly of developing countries highly exposed to world market 
price fluctuations. As such fluctuations are to be expected also in the future, it would in my view be advisable not to have recourse to export restrictions on staple food anymore. 
3.38.  Let me conclude. It seems important to me to acknowledge the major efforts undertaken by 
Ukraine in recent years. On the trade side, Ukraine, as a recently acceded Article XII Member, has 
an obvious interest in the WTO's negotiation function contributing to a more level playing field in respect of Members' commitments. 
3.39.  In respect of the Free Trade Agreement negotiated with the EU, it will be important for 
Ukraine to get legal certainty as soon as possible concerning the implementation of this Agreement, following the referendum of 6 April 2016 against Netherland's ratification of that 
treaty. 
3.40.  On the Ukrainian side, I would like to commend the many steps taken to improve its 
financial, economic and foreign trade situation, including through the implementation of the Free Trade Area Agreement between Ukraine and the EU and the trade facilitation measures at its 
borders. Ukraine also has to be applauded for showing leadership and determination in its attempt 
to stabilize the economic situation and to create a favourable environment for attracting FDI and strengthening trade. However, key for success will ultimately be a solution to the conflict affecting 
parts of the country and advances in tackling vested interests and corruption. WT/TPR/M/334 • Ukraine 
 
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  4  STATEMENTS BY MEMBERS 
CANADA 4.1.  Indeed, I share the discussant's assessment that Ukraine merits congratulations on its first 
Trade Policy Review since becoming a Member of the WTO. It's hard to add very much to what has 
been remarkably a comprehensive set of assessments provided by Ukraine, the Secretariat, the 
Deputy Minister and the discussant. We are all aware of the remarkable challenges that Ukraine has faced: financial crisis of 2008, the conflict in Eastern Ukraine and illegal annexation of Crimea, 
severe economic contraction, the devaluation of the currency, political uncertainty, and the 
imposition of trade sanctions by the Russian Federation which have been called into question in a number of WTO committees and councils. Amidst th ese challenges, the people of Ukraine have 
demonstrated not only their resilience but resolve and their continued commitment to delivering 
on the promises of the Maidan.  
4.2.  Currently, the formation of a new Government in Ukraine presents in our view a timely 
opportunity to build on the progress made that we have heard about. We hope the Government 
and the people of Ukraine will unify around cont inued reforms and to stay the course of change 
that has been mapped out. I don't want to repeat too much of what has already been said by the Deputy Minister and the discussant. Let me highlight, however, a couple of aspects that were 
mentioned. 
4.3.  We are strong believers in the necessity of having a stable macroeconomic environment as an 
underpinning for structural reforms and for trade so we compliment the efforts of Ukraine to reform its banking sector, improve fiscal consolidation and promote trade liberalization which are 
positive and have contributed to the stabilization of Ukraine’s economy. This has to be 
accompanied by continued efforts by the Government to address corruption and further improve the business environment.   
4.4.  We highlight in this regard the efforts by the National Bank of Ukraine which was supported 
by the Government of Canada and others to im plemented critical banking and financial sector 
reforms that contributed to the macroeconomic stabilization of Ukraine. We commend the 
Government on the implementation of key exchan ge rate, banking stability and tax reforms, all 
contributing to a comprehensive set of macroeconomic policies that will encourage sustainable and inclusive growth. 
4.5.  Fiscal consolidation and stabilization is an underpinning of Ukraine’s economy. Canada notes 
the good work undertaken by the Government of Ukraine to close the gap between the purchase 
and sale price of natural gas to households and to  privatize a number of State Owned Enterprises, 
alleviating important budgetary pressures. The Government’s plans to further increase gas tariffs 
again this year, while ensuring that the most fragile households are not unduly burdened, and its 
plans to privatize additional 300 SOEs, will streng then resiliency in the budgetary framework.  
4.6.  Concerning the WTO specific aspects, I am not going to repeat the compliments for Ukraine's 
proactive pursuit of Free Trade Arrangements but rather highlight the Canada-Ukraine Free Trade 
Agreement which we very much look forward to bringing into force. We have accompanied that with something we call the Canada-Ukraine Trade and Investment Support Project which is designed to help small and medium sized Ukrainian enterprises access Canadian and global 
markets to support the Ukrainian Government in the development of investment attraction and 
diversification strategies to facilitate increased trade and investment between Canada and Ukraine. 
4.7.  We heard quite a bit about corruption and whether you are a domestic or a foreign business, 
it is not just market access that enables you to thrive, you need transparency, rule of law and 
simplified regulatory frameworks. Indeed, we have heard the commitment of the Deputy to build on regulatory reforms already undertaken to pursue  that objective. This is part of a way to 
addressing corruption. We encourage the new Government to accelerate the implementation of 
these reforms.  
4.8.  Let me say that we share the view the Deputy, the discussant and international observers 
have, including the IMF, that a sustained effort is still required to improve governance. To this end, 
in addition to supporting Ukraine, Canada will continue to encourage the international community WT/TPR/M/334 • Ukraine 
 
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  and the International Financial Institutions alongside the WTO to continue their support for 
Ukraine. This support is critical for building success into the future.  
4.9.  I wish the Deputy and the delegation of Ukraine a fruitful exchange towards our 
deliberations. We have submitted written questions,  we are studying the responses. We wish you 
every success in this first review while we reiterate our ongoing support in pursuing the reform 
agenda. 
AUSTRALIA 
4.10.  Australia values our close and productive bilateral relationship with Ukraine including our 
substantial engagement in the MH17 Joint Investigation Team, and across a wide range of other issues such as security cooperation, people -to-people links, and economic cooperation. 
4.11.  We congratulate Ukraine on its ratification of  the WTO Agreement on Trade Facilitation and 
welcome the finalization of its accession to the Government Procurement Agreement, which 
Australia is also working towards. We commend Uk raine on its efforts to move towards an open 
market economy as a stepping stone to further integration into the multilateral trading system. 
4.12.  Reducing barriers to trade and investment are important aspects of global economic growth. 
We welcome Ukraine’s focus on economic reforms and market liberalization – including the ongoing process of breaking up monopolies an d privatising State Owned Enterprises - and 
Ukraine’s focus on integrating into global value chains. Advancing these efforts will help to improve 
Ukraine’s long-term competiveness and growth. 
4.13.  Like Australia, Ukraine recognizes the importance of foreign direct investment for economic 
development and future economic prosperity. We encourage Ukraine to continue with its reforms 
to improve the regulatory framework and foster a robust investment climate. We particularly 
encourage Ukraine to reduce existing restrictions on foreign investment in order to support the "Invest Ukraine, Open for U" campaign and build investor-friendly environments with attractive 
infrastructure for business. 
4.14.  Recognizing the broader challenges faced by Ukraine in recent years, we congratulate you 
on your achievements to date and look forward to continued cooperation as Ukraine works to build 
a more prosperous nation through greater trade and economic integration. In conclusion, we wish 
Ukraine a successful first trade policy review. 
UNITED
 STATES 
4.15.  Since its accession, Ukraine has faced a number of major challenges, including an economic 
crisis, armed aggression from combined separatist forces in eastern Ukraine, and geopolitical 
pressures. As a direct result, Ukraine’s economy and its population continue to struggle. Nevertheless, the spirit that inspired the Revolution of Dignity remains strong in Ukraine and the 
U.S. Government is committed to helping Ukraine recover and return to a path of steady and 
robust growth. 
4.16.  The work of the WTO can help: the WTO provides a forum in which Ukraine can challenge 
trade restrictive measures and rely on the rule of law. 
4.17.  Ukraine's WTO accession in 2008 introduced significant market-liberalizing reforms, and 
spurred its migration from a centrally-planned economy toward a market-driven economy. Ukraine’s ongoing commitment to that journey is evidenced by its work to root out corruption and 
reform virtually the entire way business is done in Ukraine. The importance of these reforms in 
ensuring that Ukraine does not return to the "bad old ways" cannot be underestimated. Ukraine has also been driven by its desire to integrat e itself with Europe. The United States supports 
Ukraine’s EU integration agenda, as implemented consistent with Ukraine’s WTO obligations. 
4.18.  Increased trade and investment are keys to Ukraine’s recovery, and Ukraine is creating 
incentives for both to flourish. The President of Ukraine just signed the legislation to implement 
the WTO Government Procurement Agreement, giving Ukraine access to nearly two trillion dollars 
in government procurement opportunities. Simila rly, Ukraine’s implementation of the WTO Trade WT/TPR/M/334 • Ukraine 
 
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  Facilitation Agreement can reduce the cost of exporting (and importing) and further encourage 
foreign trade. We would also urge Ukraine to participate in the expansion of the Information Technology Agreement, and thereby expand access to the information and communications technology products your industries require, at lower cost. 
4.19.  The United States commends the significant reforms undertaken by the Government of 
U k r a i n e ,  b u t  t h e r e  i s  m u c h  m o r e  w o r k  t o  b e  d o ne. For example, transparency is a consistent 
theme throughout the written questions submitted by the United States in the context of this TPR. 
As Ukraine institutes reforms, adopts new rules, and pursues privatization of state-owned 
companies, it will be critical that these processe s are open and transparent. Transparency is an 
important tool against the corruption that has undercut Ukraine’s success in the past, and will be critical in building the country's credibility with foreign investors as well as with Ukraine's own 
citizens and businesses. 
4.20.  Transparency is also critical as Ukraine aligns its regulatory regime with that of the EU. The 
Secretariat’s report notes that Ukraine has already harmonized many of its national technical 
standards with international or EU standards. The United States anticipates that Ukraine will fulfil 
its obligations under the WTO TBT Agreement to base its national standards on international standards developed through open and transparent processes. Similarly, as Ukraine moves to align 
its SPS legislation with the EU acquis, we expect Ukraine to look first to international standards as 
the basis for its national standards, as required  under the WTO SPS Agreement. Further, we are 
interested to hear about the consultation proce ss Ukraine will undertake with stakeholders, both 
domestic and foreign, as it develops and adopts new TBT and SPS standards. Those consultations 
should be open, inclusive, and transparent to en sure that Ukraine is adopting globally-relevant 
standards. 
4.21.  Another area in which transparency could be improved and used to fight corruption is 
customs. U.S. businesses have historically encount ered problems with customs valuation, and in 
particular the use of reference or indicative prices. We look forward to a discussion of how Ukraine will ensure that WTO consistent proced ures are followed in this area.   
4.22.  Both the Secretariat’s and the Government’s report acknowledge challenges in the area of 
the protection and enforcement of intellectual prop erty rights. We look forward to hearing from 
Ukraine about how it plans to address these issues. In particular, we are interested in recent amendments affording copyright and related rights. 
4.23.  The United States understands Ukraine's need to increase domestic production and expand 
exports. However, we would like more informatio n about some of the programs. For example, the 
Secretariat’s report describes a program that supports the inclusion of local components in the 
e l e c t r i c a l  p o w e r  s e c t o r  a s  w e l l  a s  s o m e  e x p o r t  p r o m o t i o n  p r o g r a m s  a n d  e x p o r t  c o n t r o l s  i n  t h e  
agriculture sector about which the United States has questions. We look forward to hearing more about these programs and how Ukraine ensures that they are WTO consistent. In closing, I would 
like to reiterate my Government’s support for Ukraine’s reform efforts in the face of extreme 
pressure on multiple fronts. We believe that its continued adherence to the rules and principles of the WTO, and its continued move toward integration with the EU, will bring Ukraine a brighter future. We hope that this discussion today will encourage Ukraine’s continuation of those policies 
and we look forward to continuing our work with Ukraine to achieve those goals. 
MEXICO 4.24.  The delegation of Mexico is pleased to observe that, as Ms Natalia Mykolska - whom we 
warmly welcome together with her delegation from Kiev - so eloquently pointed out, Ukraine has 
gone a long way in reforming its economy since joining the WTO, and has made considerable progress on the trade front. 
4.25.  I would also like to thank the discussant, Ambassador Remigi Winzap of Switzerland, for his 
excellent analysis of Ukraine's trade policy. WT/TPR/M/334 • Ukraine 
 
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  Overall economic development 
4.26.  My delegation appreciates the difficult circumstances, already mentioned by others, that the 
Ukrainian economy has to contend with. During the recent global financial crisis, the country's real GDP fell more than 20%, and though it grew by 10% between 2010 and 2011, it fell sharply 
again - by 7% in 2014 and 16% in 2015 - for the reasons mentioned in the Secretariat report and 
in the statements of the discussant and the Deputy  Minister. We are delighted that the economy is 
expected to return to growth this year. 
4.27.  Although exports (f.o.b.) of Ukrainian goods fell from US$67 billion to US$53.9 billion 
between 2008 and 2014, the share of  agricultural products practically doubled during that period, 
while the value of other goods such as iron, steel , minerals, mining products, transport equipment, 
and electrical and non-electrical machinery did no t change very significantly. Notwithstanding the 
fact that the decrease in exports in value terms was largely due to the appreciation of the dollar, 
Ukraine clearly needs to step up its efforts to diversify its exports. 
Tariffs 
4.28.  At the same time, my delegation would like to congratulate Ukraine for binding all its tariff 
lines and keeping the average bound MFN tariff rates as low as 6.1%: 10.8% for agricultural products, and around 5% for the other products. 
Dispute settlement 
4.29.  Ukraine accepted the rulings and recommendations in the panel report in Ukraine - Cars  
(DS468), withdrawing its safeguard measures on cars on 30 September 2015. This was only three months after the report was issued, and sets a good precedent for compliance in the dispute 
settlement system. 
4.30.  Nevertheless, we would urge Ukraine not to apply unilateral measures that are contrary to 
the WTO covered agreements. We are particularly concerned by the Law on Foreign Economic 
Activity, which authorizes the adoption of reta liatory measures against other states, customs 
unions, or economic groupings that restrict the le gitimate rights of Ukrainian entities engaged in 
foreign economic activity, because, as the Ukrainian delegation has shown, the WTO dispute 
settlement mechanism is there for that purpose. 
Trade facilitation 4.31.  In the trade facilitation area, we commend Ukraine for simplifying its customs procedures, 
reducing the number of permits required, introduc ing digital signatures, reducing the processing 
time and introducing a dispute settlement mechanism for fiscal matters, as mentioned by the 
Deputy Minister. Moreover, from January 2014 to September 2015, Ukrainian customs offices 
issued more than 1,900 provisional decisions and nearly 5,900 classification decisions within a 
much reduced time-frame, and Ukraine succeeded in automating its customs transit system. 
Trade in services and investment 4.32.  The Secretariat report highlights Ukraine as a net exporter of services, owing to large 
surpluses in transportation, telecommunication, computer and information services as well as 
other business services. 
4.33.  The public sector still accounts for approximately 37% of GDP. However, my delegation 
recognizes Ukraine's efforts to increase private sector participation and foreign investment in the 
country's economy. 
4.34.  I would also like to commend Ukraine for its openness reflected in its GATS commitments in 
telecommunications. We hope that all of these improvements to its trade regime will enhance the 
competitiveness of its domestic market and gene rate more employment and economic growth; but 
to that end, Ukraine will n eed to redouble its efforts. WT/TPR/M/334 • Ukraine 
 
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  Conclusion 
4.35.  Finally, we encourage Ukraine to pursue its economic reform. We thank Ukraine for the 
replies to our questions and wish the delegation that is here with us today every success in this Review. 
SINGAPORE 
4.36.  Singapore enjoys friendly relations with Ukraine. Our bilateral trade stood at a modest S$89 
million in 2015, and is dominated by imports of Ukrainian petroleum, sunflower seed, safflower 
and cottonseed oils into Singapore. We are confident that bilateral trade will continue to grow as 
Ukraine becomes more integrated into the multilateral trading system.  
4.37.  We commend Ukraine for committing itself to furthering trade liberalisation even as it faces 
tough economic and political challenges  We are particularly encouraged by Ukraine’s relatively low 
tariff profile and its efforts to improve the enforcement of IP rights. 
4.38.  We hope that Ukraine will make continued efforts to further trade liberalization and 
adherence to the rules-based multilateral trading system. In particular, we call on Ukraine to 
comply with its notification requirements and to provide periodic reports on its progress in 
privatisation and other economic reforms, as agreed during its accession negotiations.  
4.39.  Finally, we are pleased to note Ukraine’s ratifi cation of the Agreement on Trade Facilitation 
last year, and its acceptance of the Protocol Am ending the TRIPS Agreement this year. These are 
important contributions to the system. We also congratulate Ukraine for concluding the negotiations on its accession the Agreement on Government Procurement (GPA), and look forward to the submission of Ukraine’s instrument of accession in due course. We wish Ukraine every 
success in its first Trade Policy Review. 
EUROPEAN
 UNION 
4.40.  This is the Ukraine's first review after its accession to the WTO in 2008. The EU was a strong 
supporter of Ukraine's accession, as it believed, and still does, that integration of Ukraine into 
international trade rules will positively influence its trade performance and hence promote economic growth and jobs in the country. 
4.41.  Despite the difficult economic situation worsened by political instability and by the several 
security challenges, the EU acknowledges that particularly in the last few years Ukraine has stepped up the efforts towards reforming the country's trade and investment regime in a WTO-consistent manner. 
4.42.  The EU acknowledges that the Government of  Ukraine has undertaken promising economic 
deregulation and decentralisation reforms and has made progress including in the areas of gas sector reform, public procurement, macroeconomic stabilisation, and banking sector. 
4.43.  However, the EU notes that additional efforts will be needed to improve the business climate 
and increase attractiveness for investors. In this regard, the EU encourages Ukraine to focus its efforts in particular in areas such as the fight against corruption, and the establishment of a fully 
independent and efficient judiciary system as we ll as of stable and predictable legislation and 
regulation. 
4.44.  At a multilateral level, the EU acknowledges Ukraine's commitment to the international 
trade rules and principles as embodied in the WT O Agreements and appreciates Ukraine's efforts in 
duly submitting its notifications. We welcome the swift notification of its Category A commitments 
and the ratification of the Trade Facilitation Agreement. The EU would like to take this opportunity to also welcome the recent deposit of the in strument of ratification of the Government 
Procurement Agreement. 
4.45.  Regarding our bilateral relationship, Ukraine is a priority partner country within the 
European Neighbourhood Policy and the Eastern Part nership. In 2015, the EU was by far Ukraine's 
first trading partner and the largest foreign investor in Ukraine. WT/TPR/M/334 • Ukraine 
 
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  4.46.  The current legal framework for EU-Ukraine trade and investment relations is provided by 
the Deep and Comprehensive Free Trade Area (DCFTA), which is part of the Association Agreement and has been applied by both parties since 1 January 2016. The DCFTA offers Ukraine a framework for modernizing its trade relations and for economic development and will create the 
conditions for aligning key sectors of the Ukrainian economy to EU standards. The EU 
congratulates Ukraine for its commitment to the im plementation of the DCFTA and stands ready to 
continue assisting Ukraine in making progress with the reforms. 
4.47.  Without neglecting the positive aspects of the in itiatives currently on-going to facilitate trade 
and investment, further efforts would be necessary in the EU's view, particularly in the following areas. 
4.48.  First, in the area of SPS, while the import procedures and the documentation required 
should be further streamlined, the EU considers equally necessary to balance the deregulation 
efforts with the need to maintain an adequate level of sanitary and phytosanitary controls. Furthermore, the EU urges Ukraine to invest more in fully aligning Ukrainian legislation to the 
international standards and to abolish trade restrictive measures for some EU products. 
4.49.  Second, the EU wishes to underline its concerns on the export ban on wood. In the EU's 
view, this does not seem to be the proper polic y instrument to address the problem and it sends 
an undesirable message on the direction of Ukrain e's trade policy. Therefore, the EU urges Ukraine 
to lift this ban. 
4.50.  Third, the EU has concerns with reference to th e delays and lack of transparency in making 
VAT refunds, and adequate measures should be considered for making the process more 
functional. 
4.51.  Fourth, the EU notes a low level of protection of intellectual property rights, in particular in 
terms of counterfeiting and piracy. The EU calls on  Ukraine to take the necessary legislative and 
implementing actions without further delay. Ukraine notably needs to complete important tasks 
regarding online piracy, liability of intermediary  service providers, accreditation of collective 
copyright management organizations (CMOs) and non-payments of royalties by state broadcasting 
companies. 
4.52.  Finally, the EU considers necessary to improve further transparency of regulatory practices 
and to consult to a larger extent civil society and various stakeholders in the process of adoption of legislation and regulation in Ukraine. 
4.53.  The EU is confident that this first exercise will help Ukraine to further develop and improve 
its trade policy. On behalf of the EU, I wish Ukraine a very productive and successful review. 
THE
 SEPARATE  CUSTOMS  TERRITORY  OF TAIWAN,  PENGHU,  KINMEN  AND  MATSU 
4.54.  The Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu recognizes the many 
internal and external challenges that Ukraine's economy has to face, including the various geopolitical pressures in the region. The reforms implemented by Ukraine in the past few years, 
however, are encouraging, and will hopefully lead to further integration into the global economy, 
more trade policy liberalization and diversification of trade relations, as well as greater transparency in the policy-making process.  
4.55.  Ukraine’s efforts at deregulation are very we lcome, especially in the areas of technical 
regulation, licensing procedures, customs and ta xation and SPS. They should produce a more 
favourable business environment, which in turn will attract a greater amount of foreign investment. Indeed, we note these recent efforts are already reflected in the World Bank's Doing 
Business Report for 2015, where Ukraine has moved up 41 places in the rankings to 96th in the 
last two years. 
4.56.  We were pleased to see, as well, that Ukraine submitted its letter of acceptance of the WTO 
Trade Facilitation Agreement on 6 December 2 015 and the acceptance of the GPA yesterday, 
which should enhance its role as a trade transit corridor in the region. We commend Ukraine’s efforts. WT/TPR/M/334 • Ukraine 
 
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  4.57.  Since acceding to WTO membership in 2008, Ukraine has played an active role in the DDA 
negotiations and, as a fellow-member with us of the Article XII Group, we expect to engage closely together in the negotiations that lie ahead. 
4.58.  On trade policy, in advance, we submitted several questions to Ukraine covering, among 
other areas, subsidies, mining, energy and servic es. We thank Ukraine’s response yesterday. We 
shall study the responses with great interest. There are just a few specific points, though, that I wish to mention here, if I may. 
4.59.  Needless to say, Ukraine's most important trade policy initiative is probably the recent 
Association Agreement with the EU, including the Deep Comprehensive Free Trade Area (DCFTA). We recognize that this covers a number of different policy areas and enables Ukraine's legislation to more closely resemble that of the EU. Nevert heless, while Ukraine has clearly demonstrated its 
commitment to open trade, some concerns do remain in the context of this TPR.  
4.60.  We note, for example, from the Secretariat's report, that, in the area of investment, "foreign 
enterprises (i.e. wholly-owned by foreign capital) may not be established in industries of strategic 
importance for the national security under the law", and that "no attempt has been made to draw 
up a precise or exhaustive list defining the sensitive and strategically-important industries". We would therefore encourage Ukraine to adopt the necessary reforms in order to guarantee the 
transparency of the related procedures.  
4.61.  On the bilateral front, the level of trade flows between us and Ukraine are at present 
modest. Our exports to Ukraine are mainly IT products and machinery while our imports are predominantly iron and steel products. But, potential certainly exists to increase and diversify our 
bilateral trade, not only in goods, but also in services and investments. We understand Ukraine is 
planning to streamline its visa application procedures. I believe this will have a positive effect on facilitating trade and investment, so we encourage Ukraine to expand the country list of 
streamlining visa procedures. 
4.62.  In closing, I would like to express the hope that Ukraine continues to benefit from the 
foundations it is building through its own efforts, and that it finds constructive support and 
feedback from fellow-WTO Members in this, its first Trade Policy Review. We strongly encourage 
Ukraine to hold firm to its strategy of economic and trade policy reforms.  
COLOMBIA 4.63.  After successfully completing the reform process for accession to the WTO in 2008, for this 
first trade policy review Ukraine's economy has b een troubled by external factors such as the 
world economic crisis, political instability, the events in Crimea and the conflict in the east of the country. 
4.64.  The slight economic recovery of 2010 and 20 11, triggered by a package of governmental 
measures to encourage public investment, facilita te trade and reform the tax rate, was tempered 
in 2014 and 2015. 
4.65.  The reduction in global demand and unfavourable international prices for certain 
c o m m o d i t i e s  l e a d  t o  a n  e c o n o m i c  d o w n t u r n  a s  a  r e s u l t  o f  w h i c h  r e a l  G D P  s h r a n k  b y  1 5 . 8 %  i n  2015. 
4.66.  Thanks to a number of measures such as the restructuring and recapitalization of the 
banking sector, freeing of the exchange rate and the IMF financial stabilization programme, the 
currency market was stabilized and international reserves, which had considerably suffered, were restored. Although these measures did help to redu ce inflation, the rate was still around 49% in 
2015. 
4.67.  On the foreign trade front, disruptions in production, the fall in international commodity 
prices and the deterioration of relations with  the country's main trading partner, Russia, 
considerably undermined Ukranian goods exports and imports, particularly during the last year. 
Between January and September 2015, exports decreased 33% year on year, while imports WT/TPR/M/334 • Ukraine 
 
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  decreased 36%. We hope that policies aimed at taking advantage of the country's fertile land for 
agricultural production will succeed in boosting exports of basic agricultural products. 
4.68.  Turning to tariffs, Ukraine bound 100% of its tariff lines and has a low average bound tariff 
rate of 10.8% for the agricultural sector and 4.95 % for the industrial sector. Its applied tariffs are 
slightly below those levels. We note that they ha ve used different measures, such as import and 
export licensing and quotas, temporary import surcharges, and sanitary and phytosanitary measures that have been a source of concern for the WTO. On the tax front, the VAT applied to 
agricultural activities is fairly complex, and the amounts collected can be used directly by the 
private sector to fund certain operations. 
4.69.  As a net exporter of services, in particular transportation, telecommunications and computer 
services and other business services, Ukraine has recorded surpluses during the review period. 
Travel related services were adversely affected by the decline in the number of tourists entering 
the country, and recorded a deficit from 2011 onwards. 
4.70.  Foreign direct investment has recently been hit by the withdrawal of Russian and Cypriot 
investment capital and the depreciation of the hryvnia. We hope that the recent measures to 
protect the rights of investors, improvements  in the investment climate and the promotion 
campaign "Invest Ukraine, Open for U" will lead to an increase in capital inflows to the benefit of 
the economy. 
4.71.  We welcome the efforts made by Ukraine to align its sanitary and phytosanitary standards 
and technical regulations to the European Union, to adapt its intellectual property rules, to 
encourage privatization of State owned enterprise s, to enhance transparency in its budgetary 
expenditures, to use authorized economic operators and to streamline customs procedures, 
clarifying and expediting them. We note, in partic ular, Ukraine's ratification of the Agreement on 
Trade Facilitation and its accession to the WTO Agreement on Government Procurement. 
4.72.  As regards our bilateral relations, we note  that trade flows reached US$48 million and 
consisted primarily of Colombian exports of coal and roses and imports from Ukraine of flat steel products. We stress our interest in continuing to deepen and diversify these trade relations. 
4.73.  We hope that the reforms undertaken by the Ukrainian Government to maintain a liberal 
trade regime, to modernize and diversify its economy and to make use of highly qualified human resources will place the country back on the path to growth. 
4.74.  Finally, we wish the distinguished delegation of Ukraine every success in this trade policy 
review exercise and thank them for their replies to our questions. 
ARGENTINA 4.75.  Argentina notes with interest the development of Ukraine's economy and trade. Faced with 
major political and social challenges, Ukraine has made a noteworthy effort to gradually restore its 
productive activity, to achieve a relative macroeconomic balance as regards its exchange rate and price stability, and to improve the financial performance of its companies; in addition to which it 
has concluded free trade agreements with a number of countries, in particular the European Union. 
4.76.  Also worth mentioning are the measures adopted to contribute to the continued 
development and modernization of its economy. This is all the more remarkable in the context of the global crisis and falling raw material prices, not to mention the political and social conflicts 
plaguing the Ukraine during the review period. 
4.77.  We stress that there is considerable potential for growth and diversification of trade between 
Argentina and Ukraine, and this could provide Ukrainian economic relations with the impetus 
needed to stabilize the country's trade balance. 
4.78.  In this connection, we note that trade patterns with Ukraine have tended to focus on certain 
specific sectors. Argentine exports are dominated by agri food products, while Ukrainian exports 
tend to be manufactures of industrial origin. We therefore think it is important to identify actions in WT/TPR/M/334 • Ukraine 
 
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  specific areas of cooperation that will stimulate bilateral trade by including goods with higher value 
added and encouraging the integration of the two economies. 
4.79.  Lastly, we reiterate our appreciation of this renewed opportunity to exchange points of view 
and comments on the trade policies and practices of Ukraine. We would like to draw attention once 
again to the importance of this exercise in transp arency from every point of view, and we wish the 
Ukrainian authorities a successful conclusion to this review. 
CHINA 
4.80.  Today marks the very first trade policy review of the Ukraine. The past 8 years have 
witnessed the Ukraine’s economy going through ups and downs, mainly due to the financial crisis, economic and political challenges. China is fully understanding and sympathetic with the economic difficulties that Ukraine has confronted with.   
4.81.  It is heartening to see that the situation was beginning to get better since last year, with 
appropriate actions Ukraine has taken to improve the economy, including gradual relaxation of 
currency and capital restrictions, balance of the government budget, reforms of SOEs and 
Technical Regulation System, the introduction of the IMF program to stabilize the finance and 
relevant sectors, etc.  
4.82.  Despite of that, the economy is still vulnerable due to the uncertain political and economic 
situations. In this regard, we would encourage Ukraine to undertake further macroeconomic 
policies and reforms to win back the confidence of consumers and investors, improve the business 
and investment climate, enhance the relations with its trading partners, and ultimately, rejuvenating the domestic economic growth. We expect Ukraine to continue their efforts in 
economic reform and liberalization and ensure th e economic growth to "reach about 2% in 2016" 
as predicted by the IMF. 
4.83.  On the multilateral front, at the time when it joined WTO as the 152nd Member back in 
2008, Ukraine made a wide range of commitments. Ever since then, Ukraine has been actively 
participating in various negotiations on new WTO Agreements such as Information Technology Agreement and Government Procurement Agreement. Particularly, China would welcome Ukraine’s 
move to have ratified the Trade Facilitation Agreement last December and accepted protocol 
amending the TRIPS Agreement. We note th at some WTO Members have taken temporary 
restriction measures due to the particular circumstances. These measures should be brought into conformity with the WTO rules promptly. As one of the Recently-Acceded Member, China is looking 
forward to working together with Ukraine towards a successful multilateral conclusion of the Doha 
Round in accordance with its mandate and architecture.  
4.84.  Bilaterally, China and Ukraine have maintain ed a smooth and robust economic and trade 
relations and cooperation in the past eight ye ars, which was highlighted by the Strategic 
Partnership established between two countries in 2011 and the joint efforts in building "One Belt, One Road" Initiatives. The Sino-Ukraine bilateral trade has boomed significantly, exceeding 
US$10 billion since 2011. Currently, China stands as Ukraine’s second largest trading partner. By 
the end of 2015, the stock of China’s direct investment in Ukraine was US$70 million, while 
Ukraine’s investment in China totalled nearly US$80 million.  
4.85.  We have raised some questions on Ukraine’s economic and trade policy, covering the areas 
of foreign exchange administration, import and export measures, technical regulations and 
standards, and foreign direct investment. We appreciate the responses from the Ukraine’s delegation to our questions, which we will study closely. 
SWITZERLAND 
4.86.  Eight years ago, ambitious trade reforms accompanied Ukraine’s accession to WTO. 
However, instead of adding strength to economic growth and development, the country was hit 
hard by the global financial crisis and a series of  ensuing shocks and disruptions, as outlined in 
chapter 1 of the Secretariat’s report. WT/TPR/M/334 • Ukraine 
 
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  4.87.  Pursuing reform against the odds seems critical in order for Ukraine to emerge from crisis 
and increasingly realize its full potential. That includes implementation of the ongoing IMF programme and reforms in connection with the Free Trade Agreement concluded with the EU.  
4.88.  The success of further reforms – notably in rega rd of the judicial system, the tax system, 
state-owned enterprises as well as the widespread  problem of corruption – will greatly influence 
Ukraine’s business and investment climate in coming years. 
4.89.  Switzerland commends Ukraine’s liberal tariff profile. When Ukraine implemented BOP 
measures last year, we appreciated the transparent manner in which this was notified and 
consulted on, leading to the abolishment of tariff surcharges by the end of 2015. 
4.90.  In the area of customs, streamlined procedur es introduced by the Customs Code of 2012 
have contributed positively to trading with Ukraine. We also welcome Ukraine’s swift ratification of 
the Trade Facilitation Agreement and encourage the competent authorities to pursue efforts aimed 
at further improving customs procedures. 
4.91.  We congratulate Ukraine on the deposit of its accession instrument for the Government 
Procurement Agreement announced today. We believe that effective implementation will have 
positive effects on the transparency of proc edures, competition among bidders and value for 
money for taxpayers.  
4.92.  Ukraine’s agricultural sector has increased its contribution to economic performance during 
the reporting period. With a view to further capitalizing on these major resources, we encourage Ukraine to continue enhancing the respective business environment and strengthen trade policies in this area. 
4.93.  From the Secretariat’s report, we note the problems related to the refund of VAT to 
exporters of agricultural products, which may have the same effect as an export tax. We also call on Ukraine to refrain from temporary export duties as applied in 2011. 
4.94.  With respect to subsidies, we note that coal mining continues to be the main beneficiary of 
sectoral financial support. At the same time, domestic gas consumption prices are set to reach full import parity by April next year, thereby ending a major fossil-fuel subsidy and massive drain on 
public finances. We encourage Ukraine to continue and enhance its policies aimed at a more 
sustainable production and use of energy, in line with objectives adopted at COP-21 in Paris. 
4.95.  Before concluding, allow me to add a few words about Switzerland’s economic relations with 
Ukraine. As Ukraine’s first free trade partners after its earlier agreements with the CIS States and 
Macedonia, the EFTA States concluded an FTA in 2010, which entered into force in 2012. While 
comprehensive in scope, we look forward to updating this FTA in light of Ukraine’s more recently concluded DCFTA with the EU. 
4.96.  Two-way merchandise trade reached a peak of US$930 million in 2013, but fluctuated 
markedly over the reporting period, in reflection of the unstable economic environment. In terms of foreign direct investment in Ukraine, Switzerland is among the top ten countries of source, with 
cumulated stocks of about US$1.4 billion. For both trade and investment flows, we believe that the 
potential for further expansion remains substantial. 
NORWAY 4.97.  The Ukrainian economy has great potential. The country has extensive access to arable 
land, vast gas reserves, a highly educated population and, in several areas, an advanced industry. 
Unfortunately, the financial crisis in 2008 hit the economy hard. With the outbreak of conflict in Eastern Ukraine, a severe economic contraction followed. As mentioned in the Secretariat’s report, 
real GDP contracted by nearly 7% in 2014 and another 16% in 2015. The World Bank projects a 
gradual economic recovery and that the economy w ill grow by 1% in 2016. The projection relies 
on reform progress and no further escalation of the conflict. 
4.98.  In this situation, progress made by Ukrain e on the World Bank Doing Business Report has 
impressed us. Ukraine goes from being ranking 137th in 2013 to 96th in 2015. There are, WT/TPR/M/334 • Ukraine 
 
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  however, still efforts to be made to further improve Ukraine’s rankings. We encourage Ukraine to 
do its utmost to ensure that vested interests and corruption do not pose challenges to political and economic reforms. 
4.99.  Completion of the negotiations on Ukraine’s accession to the Government Procurement 
Agreement in November 2015 was a positive step. We commend Ukraine for the extensive reforms 
undertaken as part of its accession negotiations, and congratulate Ukraine on having deposited its instrument of accession yesterday. We hope and believe that acceding to the GPA will help Ukraine 
strengthen good governance in the area of public  procurement, assist Ukraine in its fight against 
corruption, and increase transparency of govern ment procurement practices. The accession will 
also provide significant non-discriminatory market access opportunities for Ukrainian suppliers.  
4.100.  With economic downturn, resort to trade remedies for protectionist purposes may be 
tempting. While we note that Ukraine is not among the most frequent users of trade remedies, 
there are several anti-dumping and safeguard measur es in force. Some of these have been subject 
to dispute settlement in recent years. We encourage Ukraine to restrict its use of trade remedies, 
and to ensure that any investigation or imposition of such measure fully complies with Ukraine’s 
WTO obligations. 
4.101.  Customs valuation in Ukraine has been an issue since 2011 when it was first raised in the 
WTO. Norway and others have reverted to the issue repeatedly, most recently in the meeting of 
the Council for Trade in Goods 15 April. Reports fr om industry suggest that in a number of cases 
the value, which serves as basis for calculation of the customs value of herring imported to Ukraine, has been higher than the agreed price on the invoice. This means additional duty and 
value added payments on imports. Apparently, the practice varies at different border offices. In a 
constructive bilateral meeting last week, Ukrainian authorities assured us that they intend to continue their work to ensure that Ukrainian customs practice is in conformity with WTO rules. We 
reiterate today that Ukraine should contribute to solving the problems faced by economic 
operators, and make sure that customs value is defined in accordance with WTO methodology in 
all cases.  
4.102.  As a member of the European Free Trade A ssociation (EFTA) Norway has a Free Trade 
Agreement (FTA) with Ukraine. The comprehensive agreement facilitates growth in trade and investment. At the first Joint Committee meeting in May 2013, the parties to the agreement confirmed that it has functioned well since it entered into force in June 2012. Ukraine and EFTA are 
planning for another Joint Committee meeting later this year. The upcoming meeting will be a 
good opportunity for further discussions of trade issues.  
4.103.  Trade between Norway and Ukraine is modest. Not surprisingly, fish and machinery are the 
most prominent sectors. The good news is that Norwegian export figures for 2016 are already 
picking up. We hope this trend will continue and that our trade will reach previous levels again.   
4.104.  We look forward to future cooperation and enhanced trade and wish Ukraine a successful 
first trade policy review. 
NEW
 ZEALAND 
4.105.  New Zealand and Ukraine have a modest trading relationship, but there is scope to further 
develop our trade and investment links. We see this inaugural Review as a useful opportunity to 
engage more deeply with Ukraine on its trade and investment policies, and New Zealand hopes 
that Ukraine will find this inaugural Trade Policy Review an informative and useful exercise for developing its trade policies and practices.  
4.106.  This Review takes place at a time when Ukraine is operating in a difficult economic 
environment, reflective of its security and econom ic challenges. After its accession to the WTO in 
2008, Ukraine’s economy was hit hard by the Global Financial Crisis. Its economic recovery was 
hampered by repeated setbacks, notably domestic political developments, the situation in Crimea 
and Eastern Ukraine, and the corresponding effects on its regional trade and economic relationships. As the Secretariat has noted, the course of the Ukrainian conflict’s resolution will influence Ukraine's economic performance in the short-to-medium term. WT/TPR/M/334 • Ukraine 
 
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  4.107.  Despite these challenges, we welcome the positive progress Ukraine has made towards its 
trade policy objectives of market liberalization and economic reform. Since its WTO accession, Ukraine has also concluded a number of free trade agreements, including with its largest trading partner – the European Union. New Zealand is pleased that Ukraine is working to further 
strengthen its economic reform agenda throug h the negotiation and implementation of these 
agreements, including by aligning selected standards with those of the EU. 
4.108.  In the WTO, New Zealand particularly acknowledges Ukraine’s recent progress towards 
accession to the WTO Government Procurement Agreement (GPA). We note that last month, the 
Ukrainian Parliament approved Ukraine’s GPA accession package. We recognise this positive move by Ukraine as part of its ongoing reform progra mme, and look forward to Ukraine depositing its 
instrument of accession and formally ac ceding to the GPA later this year.   
4.109.  While these developments are encouraging, th e reports by the Government of Ukraine and 
the Secretariat raised questions for us in a number of areas – as detailed in our written 
submissions to this review.   
4.110.  In agriculture, New Zealand would welcome further information on the revision of Ukraine’s 
food safety and nutritional standards regime, on the conformity of some phytosanitary measures 
with international standards, and on the use of Amber Box support. We would welcome further 
detail on Ukraine’s Export Strategy and Action plan, its new agrarian policy, and its reduced 
timeframes for issuing phytosanitary and quarantine certificates. We are also interested in Ukraine’s land tenure regime and the moratorium on land sales. 
4.111.  New Zealand has sought further detail on a number of points relating to Ukraine’s 
implementation of the EU-Ukraine Deep and Co mprehensive Free Trade Agreement (DCFTA). This 
includes the likely long-term impact on Ukraine of its entry into force, as well as some more specific points around wine tariffs, and Ukraine’s intended implementation of the EU acquis under 
the DCFTA. 
4.112.  We have also sought further information on Ukraine’s support for the fisheries sector, and 
on the actions Ukraine is taking in order to meet EU renewable energy generation obligations as a 
result of the DCFTA. 
4.113.  On corruption, which continues to hinder Ukraine’s economic reform, New Zealand is 
interested to learn what steps have been taken and are to be taken to tackle this issue and to improve its ranking in the Transparency International Corruption Perceptions Index. We welcome 
Ukraine’s perspectives on these issues and others t h a t  w i l l  b e  r a i s e d  d u r i n g  t h e  c o u r s e  o f  t h i s  
review.  
4.114.  In conclusion, New Zealand acknowledges the progress Ukraine has made in a challenging 
environment since its WTO accession. In its report for this review, the Secretariat has concluded 
that “in the long run, consistent and determined implementation of reforms will help lift the Ukrainian economy from its present doldrums towards its true potential.” We agree with this 
assessment and look forward to seeing Ukraine rea lise this potential, supported by a stable trade 
and economic framework and ambitious goals for economic recovery. 
BRAZIL 4.115.  The trade reform package adopted by Ukraine as it prepared to accede to the WTO in 2008 
prepared the country to experience relevant economic growth. However, the significant challenges 
faced in the years since brought economic and financial headwinds, causing its GDP to experience negative results. As other WTO Members, we are hopeful that the economic decline bottomed out 
in 2015 and that 2016 brings positive growth to Ukraine. 
4.116.  We notice the numerous trade-related reforms undertaken in recent years and the priority 
attributed to it by the Ukrainian Government, as noted by the discussant and all Members that 
intervened before us. We recognize the efforts in streamlining several business procedures through 
the revision and amendment of domestic legislation, as well as the plans to privatize public enterprises. Those measures will certainly contribute to overcome the economic challenges faced WT/TPR/M/334 • Ukraine 
 
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  by the Ukrainian economy, by creating a positive environment for business confidence and 
stimulating investments and consumer expenditure.  
4.117.  Turning now to the bilateral domain, the economic relations between Brazil and Ukraine 
have much room to grow. The trade flow in 2015 was modest, around US$150 million, down from 
a peak of US$1 billion in 2012. This result may be attributed by the economic challenges faced by 
our two countries in the recent past. Brazil’s exports to Ukraine consist mostly of agricultural goods, such as tobacco, food products and sugar; imports from Ukraine are primarily comprised of 
chemical or mineral fertilizers, iron and steel prod ucts and electric machinery. There are certainly 
opportunities for the diversification of bilateral trade flows. 
4.118.  We are confident that the relations between Ukraine and Brazil will continue to be 
reinforced in a constructive and open way, with a view to promoting trade in goods and services. 
As both of our countries face economic challenges, an increase in bilateral trade will be beneficial 
for restoring our paths to economic growth. We have submitted a set of questions on measures related to exports and intellectual property. We thank the delegation for the answers provided, 
which will be conveyed to our capital. 
REPUBLIC
 OF MOLDOVA 
4.119.  We would like to commend the Government of Ukraine and the Secretariat for their 
precious work in compiling the useful reports on trade policy practices in Ukraine, ever since 
Ukraine became WTO's 152nd Member on 16 May 2008. 
4.120.  Also, we would like to congratulate Ukraine on its ratification of the Trade Facilitation 
Agreement on 16 December 2015 and on the very rece ntly ratified GPA Agreement. Ukraine joined 
the Information Technology Agreement upon accessi on and the plurilateral Agreement on Trade in 
Civil Aircraft in 2010. International transportation services are zero rated and Ukraine has very reasonable and acceptable air services prices among other countries in the region.  
4.121.  Ever since Ukraine became a Member of the WT O, its economy has been on a path of trade 
development and economic liberalization, moving from a centrally-planned economy towards a market-driven economy despite a challenging geopolitical environment, regional instability, 
currency devaluation and the external pressure.  
4.122.  However, political instability in the period of 2010-2011, followed by the developments in 
Crimea and the war in the Eastern part Ukraine, negatively influenced the economic growth and GDP by nearly 7% in 2014 to 16% in 2015.The confli ct and the withdrawal of capital from certain 
foreign investors reduced foreign direct investment, which fell from more than US$8 billion in 2012 
to US$410 million in 2014.  
4.123.  Among the factors that have a negative impact on the volume of bilateral trade are: the 
depreciation of the national currency, loss of econ omic ties with the Russian Federation and access 
to its market, the reduced financial capacity of the local population and financial challenges of 
enterprises. 
4.124.  Nonetheless, some signs of stabilization of the economy have emerged in 2015 as Ukraine 
has begun to implement reforms, which are supported by a new IMF program that was approved in March 2015 and envisions about US$17.5 billion in financing over four years. 
4.125.  Ukraine is one of the most important trading pa rtners of Moldova. Even if the trade volume 
has declined with 36% or US$238 million in comparison with last year, Ukraine still remains 
among top 5 trade partners of Moldova. Export of goods from Moldova to Ukraine has decreased 
58% in comparison with 2014. Ukraine is Moldova’ s 4th exporting country. The import of goods in 
2015 in Moldova from Ukraine has been US$370 million  and registered a decrease of 32% in 2014. 
4.126.  The Republic of Moldova has submitted several questions to the Government of Ukraine 
regarding the benchmark system, the activities which currently require “activity licenses” , and the 
effects of the recent decision of the Ukrainian Parliament to eliminate the applied MFN rates during 
the year of 2015, which was slightly below the bound  levels at 9.6% (for the agricultural products) 
and 3.6% (for the industrial goods), that affected  the bilateral trade balance between the Republic WT/TPR/M/334 • Ukraine 
 
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  of Moldova and Ukraine. We look forward to rece ive the answers to the questions provided in due 
time. 
4.127.  We count on increasing our bilateral trade, following the entering into force, on 
1 January 2016 of the second part of the Ukraine–European Union Association Agreement, which 
provides for the creation and launch of the Fr ee Trade Area between Ukraine and the European 
Union.  
4.128.  Moldova believes that the implementation of  t h i s  D C F T A  w i l l  c o n t r i b u t e  t o  a  b e t t e r  
competition and to the opening of new opportunities, not only in trade exchanges between EU and 
Moldova, but also in the trade between Moldova and Ukraine. To further develop bilateral trade and economic relations, there is a need to simplify customs duties, to continue developing joint projects, organize trade forums, etc. 
4.129.  Moldova encourages Ukraine to efficiently and diligently implement the Association 
Agreement with the EU, which will secure further development and modernization of the Ukrainian economy, according to EU standards.  
4.130.  We are aware that the military conflict affect ing the Eastern part of Ukraine is and will 
continue to affect Ukraine’s economic performance. While reiterating Moldova’s support for the independence, sovereignty and territorial integrity of Ukraine, we are sure that through the firm 
application of reforms, our neighbour shall be able to achieve steadfast economic recovery. 
4.131.  The Republic of Moldova is confident that the first exercise of the trade policy review will 
help Ukraine to achieve its economic objectives and fully honour its international commitments. 
4.132.  We look forward to continue further strengthening our bilateral relations with Ukraine and, 
on behalf of the delegation of the Republic of Moldova, I wish to the Ukrainian delegation the 
utmost success during the first WTO Trade Policy Review Cycle. 
RUSSIAN
 FEDERATION 
4.133.  The Russian delegation joins others in welcoming the first Trade Policy Review of Ukraine. 
We strongly support the TPR mechanism and the contribution it makes to enhancing transparency and building confidence in the multilateral trading system. 
4.134.  Historically, the Russian Federation and Ukraine had very close and complementary 
economic ties in various sectors: aerospace, energy , machinery, transport, agriculture, etc. In this 
context, it is deeply disappointing that the recent trade policy of Ukraine’s authorities is aimed at termination of existing bilateral relations and contributing to the aggravation of macroeconomic 
performance, which is far from ideal without that. 
4.135.  The Russian Federation has a number of questi ons and serious concerns as regards to the 
Ukrainian trade and investment policies, which were presented to the delegation of Ukraine prior 
to this meeting, and some of which I would like to voice today.  
4.136.  Firstly. We would like to note the Ukrainian authorities’ practice of the decision-making in 
trade, which has political context and serious trade-distortive effect. The Russian Federation would 
like to present its concerns as regards to the non-conformity of the measures applied by Ukraine 
pursuant to the Presidential Decree No. 549/20 15 of 16 September 2015. These measures are 
designed, in particular, to block Russian assets, restrict payments and transfers, prohibit business contracts, totally or partly ban a transit of resources, flights and transportation, ban business 
activities within the territory of Ukraine, totally or partly ban supply of telecom services, 
cancellation or suspension of licenses or other compulsory approvals for certain types of services which are required to operate in the Ukrainian market, restrict trade operations etc.  
4.137.  Secondly, according to the Cabinet of Minist ers’ Resolution No. 1147 of 30 Se ptember 2015 
on import ban of goods originating in the Russian  Federation, the Ukraine imposed an import ban 
on certain Russian goods (beef, pork, poultry, meat, fish, dairy products, coffee and tea, wheat, 
sugars and confectionary, child nutrition, beer, ethy l alcohol, vodka, cigarettes with filter, etc.). WT/TPR/M/334 • Ukraine 
 
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  4.138.  Furthermore, under the Gas Market Law of  Ukraine No. 329-VIII of 9 April 2015, an 
operator of a gas transportation system as well as of underground storage facilities should be 
either a wholly state-owned enterprise or a joint venture between a state-owned enterprise and a foreign company controlled by residents of the United States of America or the European Energy 
Community. Moreover, an operator should obtain a mandatory certificate of compliance with the 
EU’s requirements in this field.  
4.139.  We believe that these requirements are not consistent with the provisions of the GATS 
Agreement as well as specific commitments of Uk raine. The Russian Federation is also looking 
forward to receiving an answer to our follow-up question on the Ukrainian legislative regulations in respect of tariffs for natural gas transportation services via interconnectors set for entry and exit points, which appears to be discriminatory in comparison with internal tariffs. 
4.140.  We reiterate our concerns about Ukrainian practices of application of anti-dumping 
measures. In particular, we highlight inconsistency of the procedure led to the decision to increase the definitive anti-dumping duties on Russian am monium nitrate. Ukraine rejected the price of 
natural gas input paid by Russian exporters and producers of ammonium nitrate and replaced it 
with the adjusted export price of natural gas. Thus, we believe that such a methodology is not consistent with the WTO Anti-Dumping Agreement.  
4.141.   In 2014, Ukraine started the interim review of anti-dumping measure on imports of float 
glass originating in Belarus, Poland and the Russian Federation. It is noteworthy that during the review period there was no domestic industry in the understanding of Article 4 of the Anti-Dumping Agreement, since the work of th e only float glass producer was suspended for 
reasons other than Russian imports. 
4.142.  Another issue of our utmost concern is the prohibition for Russian railway and airline 
companies to operate in Ukraine, which we regard as severe and unmotivated trade-restrictive 
measure. 
4.143.  We encourage Ukraine to apply its trade policies fairly, accurately, in a non-discriminatory 
way and in WTO consistent manner. 
4.144.  We look forward to reviewing the responses to our comments, which we will consider 
thoroughly. 
ECUADOR 4.145.  It is with considerable interest that Ecuador is taking part in this trade policy review, since 
as stated in the Secretariat report, Ukraine is a major agricultural producer and one of the leading 
exporters of agricultural commodities, particularly grains and oilseeds. 
4.146.  At the same time, Ukraine has an important industrial sector, and manufactures a wide 
range of industrial products. Industrial output has been shifting gradually from heavy to light 
industries and food processing. 
4.147.  The Secretariat report also mentions a number of difficulties affecting Ukraine's economy, 
and we regret that economic growth over the two year period 2010/2011 should have been 
undermined by political instability resulting from the conflict in the east of the country, provoking a sharp economic downturn which, according to the information provided, was reflected in a 7% fall in GDP in 2014 and more than double that in 2015, i.e. 16%. 
4.148.  But in addition to the above mentioned conflict, another problem that has unquestionably 
affected Ukraine's economy is the withdrawal of capital by certain foreign investors causing a decline in foreign direct investment, which fell from more than US$8 billion in 2012 to US$410 
million in 2014, i.e. by almost 95%. 
4.149.  The Secretariat report mentions the privatization programme launched in 1992 which 
excludes objects of natural importance for re asons of national security, public health, 
environmental considerations and social development, so that some 3,500 companies continue to 
be State owned. According to the report, th e economic performance of many State owned WT/TPR/M/334 • Ukraine 
 
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  enterprises is poor and their operational losses weigh heavily on the State budget and could be a 
long term threat to the financial stability of the Ukrainian economy. 
4.150.  On the positive side, however, upon acceding to the WTO, Ukraine signed the Information 
Technology Agreement, and in December 2015 it rati fied the Agreement on Trade Facilitation. Also 
worth mentioning is that in the insurance sector, Ukraine has amended its legal framework in line 
with its WTO accession commitments. 
4.151.  Ecuador also appreciates that all of Ukraine's tariff lines are bound and the simple average 
bound rate is 6.1%: 10.8% in the case of agricultural products and 4.9% in the case of 
manufactures. 
4.152.  Among Ukraine's achievements, my country would also like to highlight the reform 
programme being implemented by the current Government, involving extensive budgetary 
consolidation and greater clarity of budgetary  expenditure, and strengthened corporate 
governance and restructuring in order to make  the privatization process more transparent. 
4.153.  In conclusion, we thank the delegation of Ukraine for its replies to the questions we have 
raised on some specific aspects of the country's trade policy. These answers will provide important 
information to strengthen bilateral and multilateral trade relations. 
THAILAND 
4.154.  During the past year, Ukraine ranked Thailand’s 57th trading partner, with bilateral trade 
value stood at US$426.8 million. Ukraine ranked as our 108th export destination and 42nd import source. Although our bilateral trade has gradually declined since 2010 but have rebounded with a 62% increase in 2015. We hope that with our stro ng trade relation, such trend will continue.  
4.155.  We note the difficult period in terms of econ omic performance for Ukraine in recent years 
with an economic contraction of 16% in 2015 due to the global financial crisis coupled with the subsequent crisis in the Crimean peninsula and the conflict in eastern Ukraine. A substantial 
economic reform towards a simplified and transp arent system will undoubtedly help Ukraine get 
through this difficult period.  
4.156.  Thailand commends Ukraine’s active participation in the WTO and its willingness to 
contribute in the multilateral trading system, having joined the original ITA upon accession, 
completed its ratification for the Agreement on Trade Facilitation in December last year, and are in the process of acceding the Agreement on Government Procurement.  
4.157.  In this review, Thailand submitted several questions to Ukraine regarding investment 
policies. We look forward to Ukraine’s responses, for which we will study carefully with great 
interest. 
TURKEY 
4.158.  At the outset, I would like to state with pleasure that, despite all the political and economic 
challenges, Ukraine has been continuously building up the open market economy to further integrate into the multilateral trading system since its accession to the WTO in 2008.  
4.159.  As referred to in the Secretariat report, due to the adverse political, geopolitical and 
economic developments during the period under review, Ukraine faced severe economic hardship 
that resulted in a real GDP contraction by nearly 7% in 2014 and another 10% in 2015. However, I am pleased to observe that, some signs of stab ilization of the economy have emerged in 2015 as 
Ukraine began to implement reforms, supported  by a new IMF programme. Turkey supports 
Ukraine’s efforts to adopt and implement an agenda  of reform and is ready to cooperate and share 
its experience on structural reforms and strengthening institutional capacity. 
4.160.  Concerning sectoral policies of Ukraine, I would like to touch briefly on the agriculture 
sector. Along with its arable land Ukraine is endowed with some of the world's most fertile soils which help make it an important agricultural producer and a major exporter of agricultural 
commodities, particularly grains and oilseeds. Thanks to these fertile soils agriculture has become WT/TPR/M/334 • Ukraine 
 
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  one of the key drivers of growth in Ukraine. Steady  increase in the share of agriculture in recent 
years seems promising. In 2014, the agricultural sector accounted for 10.3% of GDP and employed about 17% of the workforce. I believe that, developing a comprehensive strategy to maintain sustainable agricultural production on the one hand, and removing artificial barriers and 
unnecessary costs for producers, exporters and impo rters on the other, would further improve the 
business climate in agriculture sector.  
4.161.  In terms of trade policy regime of Ukraine, Turkey submitted a number of written 
questions in advance, seeking further detail and clarification on policy direction and approach. 
These questions, in general, relate to Ukraine’s trade and investment regime, trade policies and practices by measure and trade policies by sector. I look forward to receiving responses in due course. 
4.162.  On the bilateral front, Turkey attaches high im portance to its relations with Ukraine due to 
its important geographical position as well as its economic potential and desires to develop cooperation in every sphere. Having said that, the fifth session of Turkey-Ukraine High Level 
Strategic Council held at the level of Heads of States in Ankara last month is a clear proof of the 
strategic alliance between our countries. 
4.163.  Coming to our bilateral trade, the trade volume between our countries decreased from 
US$6.7 billion in 2013 to US$5.9 billion in 2014 and fu rther down to US$4.5 billion in 2015. It is 
clear that these figures are far from reflecting the true potential of our economies and we should immediately take necessary steps to reverse this negative trend. In this regard, I believe that, 
concluding the Free Trade Agreement, that is already being negotiated, between Turkey and 
Ukraine would contribute to increase the bilateral trade volume to the desired levels.  
4.164.  Besides that, over 600 Turkish companies ar e currently operating in Ukraine and the 
amount of contracting projects undertaken by Turkish companies exceed ed US$5 billion and we 
continue to encourage our companies to invest more in Ukraine.  
4.165.  Turkish and Ukrainian economies are complementary to each other. Turkish exports to 
Ukraine are citric fruits, petrochemical products, motor vehicles, plastics and plastic items, 
electrical technical equipment and electric appliances. The major items of imports are iron, 
products of plain steel, hot-rolled iron and steel products and aluminium.  
4.166.  Finally, I would like to underline that, in the short to medium term, Ukraine's economic 
performance will be determined by the path for resolving the conflict affecting parts of the country. 
However, in the long run, consistent and determined implementation of reforms will help lift the 
Ukrainian economy from the current situation to its true potential. 
MONTENEGRO 
4.167.  Montenegro would like to associate itself with the statement of the European Union.  
4.168.  Montenegro recognizes that Ukraine has experienced a challenging few years and that it 
has been hit exceptionally hard by the global financial crisis, as well as political instability with 
armed conflict in parts of the country. As the Secretariat reports, these challenges have resulted in 
a contraction in real GDP by nearly 7% in 2014 and 16% in 2015. There has also been a significant fall in foreign direct investment from US$8 billion in 2012 to US$410 million in 2014.  
4.169.  Despite the negative economic position in past  years, Montenegro welcomes the finding of 
the Secretariat that some signs of stabilizatio n of the Ukrainian economy have emerged in 2015. 
In particular, Montenegro notes that the Governme nt of Ukraine has begun to implement reforms, 
supported by a new IMF programme. The IMF acknowledged the progress regarding the 
rehabilitation of the banking system and steps to improve the business environment to promote 
privatization and improve governance, but cautions that considerable further efforts in these areas remain critical for restoring robust and sustainable economic growth.  
4.170.  In agreement with the Secretariat, Montenegro believes that only consistent and 
determined implementation of reforms will help lift the Ukrainian economy towards its true potential. In this context, Montenegro will continue  to follow with interest implementation of the WT/TPR/M/334 • Ukraine 
 
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  ambitious plan of the Ukrainian Government aims at implementing structural reforms in 
agriculture, anticorruption laws and a new plan for “doing business”, including creation of an export-credit agency and trade repres entative offices around the world. 
4.171.  Montenegro commends the Government of Ukraine that in 2015 has ratified Protocol to 
Trade Facilitation Agreement and got invitation to join the WTO Agreement on Government 
Procurement after concluding negotiations that have been ongoing since 2011. These results reflect an active and constrictive participation of Ukraine in the WTO. In addition, we wish to 
congratulate the Government of Ukraine on securing key Deep and Comprehensive Free Trade 
Area (DCFTA) with the European Union, which is part of the EU–Ukraine Association Agreement. As indicated in the Government report, this will be a big step for the Ukrainian exporters and for overall transformation of the country. 
4.172.  Montenegro firmly believes that closer European Union integration will bring long-term 
benefits to the people of Ukraine and provide valuable trading opportunities. My Government 
offers its full support to Ukraine in this important process to secure further development and 
modernization of the Ukrainian economy according to the EU and international standards.  
4.173.  Bilateral trade relations between Ukraine and Montenegro reflected in our mutual strong 
commitment to free trade are strengthened by the Free Trade agreement, which entered into force 
in January 2013. The Agreement covers trade in goods and services; provisions for consultations 
and dispute settlement are also included. As th e Agreement entered into force, Montenegro 
eliminated all duties on Ukrainian goods. Trade in services is governed by GATS, with Montenegro providing additional market access to Ukraine for insurance services and road transport relative to 
its WTO schedule. 
4.174.  Within the framework of this agreement, there is a significant potential, but our trading is 
still modest with the FDI from Ukraine amounting to €13 million since the inception of the FTA. I 
am glad to report that two countries have agreed to cooperate also in fighting money laundering 
and to advancing mutual assistance in customs matters that are particularly relevant in the context of the TFA Protocol. 
4.175.  My delegation would like to use this opportunity to reiterate that our business community 
stands ready to intensify efforts in revisiting some of the projects and investment opportunities that will further increase the economic cooperation between our countries and generate more trading in goods, services and public procurement. In addition, Montenegro will continue to 
support Ukrainian’s efforts in achieving our common objective – full membership to the European 
Union. 
4.176.  Finally, Montenegro is looking forward to continuing excellent and constructive 
engagement with the delegation of Ukraine in Ge neva - my colleague Ambassador Yurii Kliymenco 
and his impressive team. We wish Ukraine every success in its first Trade Policy Review. 
INDIA 
4.177.  Soon after its accession to the WTO, Ukraine was hit adversely by the global financial 
crisis. The economy though bounced back in 2010-11 but this phase turned out to be a short one. 
Subsequent internal political and economic challenges as well as uncertain global economic environment, low external demand and commodi ty prices dampened the economy’s growth 
momentum. As noted in the Secretariat report, the re al GDP of Ukraine contracted by nearly 7% in 
2014 and another 16% in 2015.  
4.178.  Notwithstanding these challenges, including going through a severe economic recession 
and macro-economic adjustment process, we note that Ukraine has been continuously attempting 
to stabilize its economy, and to further integrate into the global economy. Since its accession to the WTO in 2008, Ukraine has enacted new Customs and tax Codes, as well as initiated reforms 
measures to strengthen its overall trade and investment regime and creating a more predictable 
business environment. 
4.179.  Ukraine undertook wide-ranging commitments as part of its accession process to the WTO 
in 2008. At the trade policy front, as brought out in the Secretariat report, Ukraine has been WT/TPR/M/334 • Ukraine 
 
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  deploying an array of measures such as temporary import surcharges, export and import 
restrictions, custom valuation practices, export duties, export promotion programmes, assistance to specific sectors to support its economy and industry. In this context, we would encourage Ukraine to continue taking steps to make its trade policy regime more transparent and predictable, 
having full regard to the WTO disciplines and its accession commitments. Indeed, we note that as 
part of its Strategy for Sustainable Development - “Ukraine 2020” adopted in 2015, Ukraine Government is committed to stabilizing its economy and implementing further reforms, covering 
agriculture, services sectors, investment re gime, SOEs, greater transparency and tackling 
corruption, as noted in the government report.  
4.180.  At the bilateral level, trade and economic engagement is one of the key components of 
India-Ukraine relations. The Inter-Governmental  Commission on trade, economic, scientific, 
industrial, technological and cultural matters provides an institutional framework to deepen 
bilateral ties across diverse sectors. Our bilateral trade reached a level of over US$2.6 billion in 2014-15. India is an important destination for Uk raine exports, which reached a level of over 
US$2.3 billion last year. Both countries have been trying to promote mutual investments, 
particularly in sectors such as pharmaceuticals. We look forward to working with Ukraine to realize the full potential of bilateral trade and investment linkages.  
4.181.  Finally, we appreciate the commitment of Ukrain e to an equitable and effective multilateral 
trading system and we look forward to working with Ukraine in the on-going work in the WTO. In conclusion, my delegation would like to wish Ukraine a successful first Trade Policy Review.   
GUATEMALA 
4.182.  Trade between Guatemala and Ukraine has grown substantially over the past 15 years. In 
2001, it totalled US$2.35 million , and by 2014 it had exceed US $61 million. Guatemala's main 
export to the Ukrainian market is currently nickel (in 2015, nickel exports exceeded US$49 
million), followed by unmanufactured tobacco, while Guatemala's main imports from Ukraine are 
fertilizers. 
4.183.  As regards today's review, we recognize the efforts made by the Ukrainian authorities to 
eliminate the import and export licensing requirements, the progressive privatization process 
undertaken since 1992 and the reform programme aimed at consolidating the budget, ensuring greater transparency of public expenditures and strengthening corporate governance. In the short 
and medium term, Ukraine will be faced with the considerable challenge of restoring its GDP 
growth to 2010 2011 levels, revising and simplifying  its taxes – in particular the different VAT 
regimes – and continuing to promote greater private sector participation in its economy. 
4.184.  Guatemala appreciates Ukraine's efforts over the period covered by this report, and wishes 
the Ukrainian delegation a successful conclusion to its country's trade policy review. 
GEORGIA 4.185.  Georgia shares Ukraine’s commitment to trade liberalization and the multilateral trading 
system and stands ready to continue working closely towards our common objective – full 
membership to the European Union. To this end, Georgia fully supports Ukraine’s commitment to ensuring long-term inclusive economic growth th at improves the welfare of the population.  
4.186.  Ukraine is the important strategic partner for Georgia. Both countries share the same 
views in many vital aspects and enjoy excellent cooperation in all areas, including in transport, 
communication and tourism fields. The respective trade related actors are actively engaged to streamline new projects with the aim to further develop bilateral interactions.  
4.187.  Georgia welcomes the launching of pilot container train in January 2016 from Ukraine to 
the People's Republic of China via a new "Silk Road" that will significantly increase trade volume. 
4.188.  In the economic viewpoint, Ukraine is one of the most important trade partners of Georgia. 
Georgia and Ukraine enjoy free trade regime. WT/TPR/M/334 • Ukraine 
 
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  4.189.  In 2005-2013 Ukraine has retained place among Georgia’s top 5 trading partners. In this 
period circulation of import and export commodities has been gradually increasing. The annual average growth in export was 39%, while import increased by 22% and total trade turnover by 
25%. These positive trends continued up until 2014. 
4.190.  On the other hand, despite the above-mentioned promising and positive developments, 
due to the regional economic challenges and ongoin g conflict in Ukraine, the trade activities have 
significantly slowed down, which is reflected in the reduction of export by 57% and 17% in import. 
The same situation applies to the investment inflow  from Ukraine to Georgia. Important task lays 
ahead to address these challenges as soon as possible and get back to a growth track again.  
4.191.  In conclusion, Georgia wishes Ukraine the successful TPR and success in every mission 
Ukraine strives to accomplish. 
NIGERIA 
4.192.  It is important to note that since Ukraine accession to the WTO in 2008, it has been a 
challenging period due to a number of issues and conflicts that have threatened the country’s 
wealth. Despite the impact of global crisis in 2008 and the political stability in recent years, 
Nigeria, is pleased to note from Secretariat report that Ukraine has been able to achieve a reasonable level of progress, following a short-lived economic rebound in 2010 and 2011 which 
successively challenged with political instability in 2014 and 2015. Nigeria also notes that Ukraine’s 
transformation to a market economy had been achiev ed by the time of its accession to the WTO in 
2008, and its trade and trade-related policies pursued during the review period. The real GDP was estimated to have contracted by 16% in the first three quarters of 2015 compared with the same 
period in 2014 that is 7%. We also note that the conflict and the withdrawal of capital from certain 
foreign investors reduced foreign direct investment, which fell from US$8 billion in 2012 to US$410 million in 2014.  
4.193.  The Ukraine’s economic crisis has been accompanied by rising political and military conflict, 
and the deteriorating trade relations with its major and trading partner which took a heavy toll on the Ukrainian Government in 2014. Annual GDP contracted by 6.8% in 2014, with industrial output 
now dropping by 10%, retail sales by 12.1% and co nstruction by 20.4%. We also note from the 
same report that early 2015, Ukraine again plunged  into another financial crisis, in particular, 
disruptions in production and trade, loss of conf idence in the banking system and currency flight 
among other factors, that led to the country’s further depletion of international reserves, as the 
NBU defended the exchange rate of the hryvnia. We also note that the exchange rate liberalization 
also led to a short spell of severe fluctuations in the hryvnia which fell to Hrv 30 against the US dollar in the beginning of 2015. In addition, Ukraine suffers challenges in catching up with 
income levels elsewhere in Europe. We call on the European Union and other developed trading 
partners of Ukraine to assist them.  
4.194.  As indicated in the Secretariat report, Ukraine has been able to achieve a reasonable level 
of progress despite the impact of both external  and internal obstacles. Although, the report 
pointed out that since Ukraine’s joining of European Union the performance of its country differs from that of other EU members in terms of develo pment, economic structure and social indicators 
we note that, this is due to the numerous conflict s faced. Nigeria however, notes with concern the 
poor performance recorded in the area of trade by Ukraine over the recent years which indicates 
that Ukraine’s visible trade deficit is low. For instance, the account deficit declined in 2014 from US$4.6 billion or 3.5% of GDP, down from 9.0% of GDP in 2013. Also we note from the same 
report the deficit further narrowed in the first quarter of 2015 and moved into surplus in the 
second and third quarters. Similarly, the accumula ted deficit for the first nine months of 2015 was 
US$2 million. And the improvement was mainly due to  lower imports, as exports remains weak.   
4.195.  Nigeria observed that, Ukraine like some other countries, continued to experience 
difficulties in different sectors of their economy, in particular, industrial production which decline by 13.4%, food industry 11.2%, metallurgy 16. 4%, chemical industry 15.9% and engineering 
14.6% where performances indicators reflect that these were still low and have added to the 
burdens of the country. It would be interesting to hear any information Ukraine might share with 
members about its recent structural reforms. WT/TPR/M/334 • Ukraine 
 
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  4.196.  As highlighted in the Secretariat report, Nigeria notes with encouragement the continued 
efforts by Ukraine towards its significant reforms in the Gas sector, power generation market, modernizing and harmonizing its business legislation with best international practice, and enhancing product standards and the compatibility of such norms across borders, as well as 
creating a new, mutually profitable opportunities for trade. We urge Ukraine to continue with its 
reforms in order to address the challenges facing the sectors. It would also be interesting to know how Ukraine intends to achieve these objectives.   
4.197.  Finally, as acknowledged in the Government report, my delegation notes that in spite of its 
intensive effort that includes significant ch anges through the introduction of significant 
macroeconomic policies, measures to open up the economy, revision of the trade and trade related legislation among others. Ukraine still faces some challenges. It would be interesting if Ukraine 
could elaborate on how these issues could be addressed.  
4.198.  In conclusion, it is my delegation’s desire that after this first trade policy review, Ukraine 
would take positive and proactive means of addressing the challenges facing the country with the 
support of the Members. We wish the delegation of Ukraine a very successful trade policy review. 
JAPAN 4.199.  Overall, Ukraine has faced very severe economic conditions mainly due to political 
instability and steady downward pressure on the value of the hryvnia. 
4.200.  Nonetheless, some positive signs of stabilization in its economy have been seen of late. We 
commend the ongoing implementation of economic reforms to align the national strategy formulated last year, “Ukraine 2020” as  noted in the Government report.  
4.201.  Japan encourages Ukraine to continue and hopefully accelerate its efforts in those 
important areas such as anti-corruption and fi scal reform including pension scheme, which are 
essential to become a robust and resilient economy. 
Trade policies 
4.202.   Now let me touch upon trade policies. We commend Ukraine’s vigorous and continuous 
participation in plurilateral as well as multilateral negotiations in the WTO since its accession. We 
positively evaluate the fact that Ukraine ratified the TFA last year. Moreover, today, Japan is glad 
to hear the fact that Ukraine submitted the in strument of accession yesterday. We welcome 
Ukraine as a member of the GPA. 
4.203.  With regard to Ukraine’s efforts to maintain the transparency of its trade policies, the 
country has made more than 460 notifications about the TBT, SPS and other obligations to the 
WTO, which are highly commendable. However, acco rding to the Secretariat’s report, Ukraine has 
not yet provided periodic reports about economic reforms, which it had agreed to provide upon 
accession. Japan requests Ukraine to inform the WTO of such reports in accordance with the 
agreement. 
RTAs 
4.204.  With regard to RTAs, Ukraine has actively engaged in negotiations in this area. According 
to the Secretariat’s report, since 2008, Ukraine ha s brought into force FTAs with the EFTA and 
Montenegro, and has concluded the negotiation with Canada.  
4.205.  Among others, the DCFTA is one of the most important RTAs for Ukraine. Japan would 
further appreciate it if Ukraine could share its analysis about the impacts of the DCFTA on 
Ukraine’s trade. 
4.206.  Overall, Japan commends Ukraine’s positive efforts to liberalize international trade through 
RTAs and hopes that they will complement and strengthen further the Multilateral Trading System. WT/TPR/M/334 • Ukraine 
 
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  Investment policy 
4.207.   More than anything, we would like to expre ss deep appreciation for Ukraine’s efforts on 
the Ukraine-Japan Investment Agreement. Our Investment Agreement came into force in November 2015. As Ukraine is aware, it is now facing reductions in FDI inflows. However, thanks 
to our agreement and other investment measures formulated and implemented with a view to 
improving the investment climate, we hope that FDI inflows will be recovered very soon. 
Issues 
4.208.  Finally, let me make a couple of comments on specific issues.  
4.209.  Firstly, we have a concern with currency and capital restrictions. The National Bank of 
Ukraine, in accordance with agreements with the IMF, introduced currency and capital restrictions to prevent capital flight and further depreciation of the hyrvnia. We believe a number of 
restrictions still remain in place. We request Ukraine to provide further information of its intentions 
to relax or fully abolish these restrictions. Among others, we are concerned with the prohibition of repatriation of dividends, which appears to be negatively impacting foreign direct investment. 
4.210.  Secondly, we would like to emphasize the import ance of transparency and predictability of 
the operation of the government agency including taxation and custom authorities. We encourage the Ukraine Government to improve business climate, redoubling its efforts in anti-corruption and 
capacity building of tis agencies.  
4.211.  Please note that we have shared these two i ssues as a friend of Ukraine. We hope that 
Ukraine will take our comments into account and address possible problems. 
4.212.  In conclusion, I would like to express our strong wish to continue cooperation between 
Ukraine and Japan. 
TAJIKISTAN 4.213.  Ukraine is one of Tajikistan’s important economic partners, Ukraine has a special position 
in the Tajik foreign policy and diplomatic relations between the Republic of Tajikistan and Ukraine 
were established on April 1992. 
4.214.  We would like to express our appreciation to the delegation of Ukraine for their hard work 
in preparing this TPR, and on behalf of the Republic of Tajikistan I wish to the Ukraine delegation a 
very productive and successful Trade Policy Review and all of the best for future. WT/TPR/M/334 • Ukraine 
 
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  5  REPLIES BY THE REPRESENTATIVE OF  UKRAINE AND ADDITIONAL COMMENTS 
5.1.  In the second session of the Ukraine's first Trade Policy Review, allow me to thank those WTO 
Members who participated in our first session on Tuesday this week and those representatives who are present here with us today. We would also like to express our sincere appreciation to the 
Ambassador Winzap's insightful and thoughtful analysis. 
5.2.  This statement today provides Ukraine with the opportunity to outline the progress achieved 
and bring your attention to the challenges facing us in improving our trade and investment 
environment. Your active participation and constructive comments during our first session are 
highly appreciated and valuable to us, as they will help us to assess and further improve our trade regime and business climate. 
5.3.  I wish to reiterate that for Ukraine, this exerci se in transparency is of the highest importance 
as we are on our path of structural reforms aiming at becoming a more reliable trading partner 
and strengthening cooperation with our WTO trading partners. 
5.4.  In this regard, we truly appreciate the positive feedback received from the participants of the 
Tuesday's session, among others, on Ukraine's accession to the Protocol amending the TRIPS 
Agreement, our ratification of the Trade Facilitation Agreement, and our accession to the Government Procurement Agreement.  
5.5.  Ukraine also wants to draw Member's attention to the fact that we have been implementing a 
more comprehensive and consistent trade policy, in particular by: (1) maintaining one of the most liberal tariff regimes in the WTO; (2) introducing measures in a transparent manner; (3) withdrawing a request to renegotiate 371 bound tariff lines; and complying in a timely manner 
with a DSB decision. These points were acknowledged by most of the delegations on Tuesday. In 
addition, Ukraine revoked the temporary import surcharge on time and conditions as declared.  
5.6.  Ukraine carefully pays attention to the process of accession and engages in constructive 
dialogue and fair negotiations with acceding countries. Ukraine also commits to developing a clear 
export strategy together with an action plan  and enhancing its trade promotion activities.  
5.7.  As was mentioned by many of you, in the recent years, Ukraine has undergone a number of 
challenges, including the aftermath of financial crisis, political and economic instability, as well as 
effects of illegal occupation of Crimea and the conflict in some areas of the Donetsk and Luhansk regions. Despite all, we have undertaken major re forms, and we truly appreciate the support and 
recognition of our efforts and improvements by many WTO Members. We also appreciate that 
Members highlighted the certain areas in which more reforms are expected in the future.  
5.8.  A Ukrainian proverb says that the friend is the one not spreading honey on your bread, but 
the one telling your truth. Thus, I believe that I se e here friends of Ukraine that would like to see 
even much brighter picture of prosperous Ukraine. 
5.9.  I would like to turn now to providing clarifications regarding issues and concerns raised 
during the meeting on Tuesday. Several recurrent themes were evident in Members' statements. I 
will seek to address the most common of them, while others will be responded in due course in 
writing. 
On EU-Ukraine DCFTA 5.10.  Reflecting on the points made with respect to the EU-Ukraine DCFTA, we would like to stress 
that Ukraine will ensure that its WTO commitments and obligations will not be violated in the 
implementation process.  
5.11.  In our joint effort with the EU to address today's and tomorrow's challenges together, we 
have signed an Association Agreement, one of the most significant parts of which is the Deep and 
Comprehensive Free Trade Agreement. The Agreement is provisionally applied starting from 1 January 2016. This Agreement offers Ukraine a framework for modernizing its trade relations 
and for economic development by opening markets via the progressive removal of customs tariffs 
and quotas, with a great focus on regulatory reforms.  WT/TPR/M/334 • Ukraine 
 
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  5.12.  Harmonization with EU in the context of the DCFTA will entail major legal and institutional 
reforms covering areas such as customs, intellec tual property, government procurement, sanitary 
and phytosanitary measures, and technical barriers to trade. At the beginning of 2016, the Government of Ukraine adopted an action plan  of the DCFTA implementation for 2016-2019.  
5.13.  In 2015, the EU was Ukraine's first largest trading partner with exports amounting to 
US$15 billion, with share of about 33%. Major Ukrainian exports included ferrous metals, grain, machine building, as well as iron and ore.  
On VAT refund 
5.14.  We note that several WTO Members sought clarifications with respect to the Ukraine's VAT 
refund process. Ukraine understands the importance  of this issue and its impact on attracting 
investors and facilitating trade. I would like to emphasize that Ukraine has taken significant 
positive steps in this regard. 
5.15.  A new transparent process for VAT refund was introduced by the Ministry of Finance Order 
No. 1128 and major progress has been achieved in 2015 in this regard. The current timeframe for 
processing VAT refund applications ha s been reduced to around two months. 
5.16.  In addition, recent amendments to the Tax Code have introduced an updated procedure for 
VAT refund aiming at further optimization of the process and achieving greater transparency. 
According to these amendments, VAT refund requests will be processed in the chronological order. 
Online tracking of the application status will also be available.  
5.17.  Overall, VAT refunds are being reimbursed either in cash or applied against the tax liabilities 
of VAT tax payers. The average monthly return on  accounts of taxpayers in January-February this 
year amounted to 8 billion UAH. In January and February 2016, the total amount declared for 
refund amounted to 13.6 billion UAH while the fisca l service was able to reimburse 16 billion UAH. 
Even more, 8.1 billion UAH reimbursed in Februa ry 2016 is twice as much as in February 2015. I 
think that we are making a good progress on this issue.  
On customs matters  5.18.  Turning to the next point, Ukraine's customs administration system is undergoing 
considerable reforms. As recently announced by th e Prime Minister of Ukraine, customs reform is a 
top priority for the current Ukrainian Government for this year.  
5.19.  During accession to the WTO, Ukraine brought all customs procedures in line with its WTO 
commitments. In 2012, Ukraine adopted a new Customs Code to align with the EU Model Customs 
law and introduce key WCO Revised Kyoto Convention procedures. Ukraine retained in the new 
Customs Code full legal compliance with the WTO Agreement on Implementation of Article VII of 
GATT 1994 and other customs-related WTO Agreements. The Code provides, as required under 
WTO agreements, for administrative and judicial appeals, advance rulings, transparency, and 
confidentiality. But, what is most important, currently Ukraine is in the process of strengthening the capacity of customs officers on customs valuation in accordance with the WTO Agreement on 
Implementation of Article VII of GATT 1994.  
5.20.  Traders have the possibility to lodge an administ rative or judicial appeal regarding customs 
issues including valuation.  
5.21.  Additionally, in order to simplify the cust oms procedures and diminish the number of 
permits required for customs clearance, Ukraine has introduced a mechanism for issuing advance 
rulings on origin and classification available to tr aders. Ukraine plans to build greater awareness of 
this mechanism within the business community.  
5.22.  More importantly, Ukraine has launched the implementation of the WTO Trade Facilitation 
Agreement. The highest priorities are to modern ize the risk management system and develop a 
programme for authorized economic operators. Uk raine by doing so developed draft amendments 
to the Customs Code in order to strengthen the provisions related to AEO. These amendments are WT/TPR/M/334 • Ukraine 
 
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  planned to be adopted in 2016. Ukraine envisions an operational AEO programme in 2017. 
Concurrently, advance processing of goods and post clearance audit will also be introduced. 
5.23.  Moreover, customs officers are required to follow risk management with the aim of 
accepting transaction value for majority of import transactions.  
5.24.  Additionally, Ukraine will be strengthening internal audit and control functions within the 
State Fiscal Service and is paying significant attention to the development of human resources within customs.  
On anti-corruption activities  
5.25.  With regard to the anti-corruption activiti es, there are several successful examples.  
5.26.  There were more than 1000 corruption-related crimes registered during 2015, and according 
to these cases, 1200 people have already been brought to justice. This includes about 334 civil 
servants, 7 judges, 110 law enforcement agents, and there are still 12 regional officials, 
15 officials of city and town authorities, 25 officials of district administrations and 70 officials of village authorities who are presently facing prosecution.  
5.27.  A number of measures have been implemented in order to tackle corruption such as the 
establishment of corruption-free police in 16 major cities (29 to be added in 2017). The National Anti-corruption Bureau with over 70 new detectives has been launched. The "lustration" 
programme has been launched under which over 800 civil servants have been dismissed.  
5.28.  It is important to note that the reform effort, including deregulation and reduction in 
requirements, will tremendously reduce corrupt practices. Further, the plan to introduce e-government and automation of certain procedures will further reduce the level of interaction 
between businesses and government officials.  
5.29.  During the last year, we have dramatically streamlined and reduced regulatory requirements 
to reduce the cost of doing business and facilitate market entry. These include: 
 The reduction of administrative services from 11 000 to 3000;  
 The reduction of regulatory requirements (e.g. licensing); and  
 The launching of a New State Portal of e-Services.  
 Initial steps toward e-government and automation have been introduced. These include:  
 On-line business registration. Businesses can now register in 2 days; and  
 In the sphere of public procurement, th e e-procurement system ProZorro has been 
 created and made operational.  
5.30.  Ukraine has also adopted, and amended relevant legislation to remove the possibility of 
corruption schemes, namely, the Law "On Lustration", the Law "On the Fundamentals of Anti-Corruption Policy in Ukraine (Anti-Corruption Strategy) for 2014-2017", "On the 
Anti-Corruption Strategy for 2015-2017", the Law "On the National Anti-Corruption Bureau of 
Ukraine", the Law "On Prevention of Corruption", the Resolution "On Establishment of the National Agency for the Prevention of Corruption'", the La w "On Open Use of Public Funds", and the Draft 
Law "On State Bureau of Investigations". Amendments providing for state financing of political 
parties were adopted in 2014. Such amendments were designed according to the best global practices to combat corruption, and along with the new body the National Council for Anti-Corruption Policy are aimed to ensure the elimination of any possible corruption schemes in 
Ukraine.  
5.31.  Major anti-corruption efforts have been exerted in specific areas of the economy, namely 
the gas sector where important market liberalization and good corporate governance practices of 
state-owned enterprises have been also introduced. 
On banking sector reforms 5.32.  I would like now to take an opportunity to reflect on banking sector developments. As was 
several times highlighted, due to economic and financial crises faced at the end of 2013, the WT/TPR/M/334 • Ukraine 
 
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  National Bank of Ukraine had to apply a range of forced temporary restrictions in the foreign 
e x c h a n g e  m a r k e t  s o  a s  t o  s t o p  u n j u s t i f i e d  o u t f low of capital, eliminate pressure on Ukraine's 
balance of payment and avoid panics on the foreign exchange market. Ukraine's realizes the impact such measures may have on exporters, importers and other foreign exchange market 
players.  
5.33.  In this regard, during the last two years, some of the restrictions were partly liberalized, and 
even more according to the Letter of Intent of 21 July 2015 and the Memorandum on Economic 
and Financial Policies of Ukraine under the IMF EFF programme, a gradual lifting of administrative 
restrictions in the area of foreign exchange regulation and control is planned, including a number of temporary administrative restrictions in the foreign exchange market (introduced at the beginning of 2014) and fundamental restrictions (implemented from early 1990s). Such decisions 
will be taken based on the roadmap developed in cooperation with the IMF and under appropriate 
market conditions. 
5.34.  Additionally, the National Bank of Ukraine in cooperation with a group of Ukrainian and 
foreign experts has launched a project on liberaliza tion of foreign exchange regulation and free 
flow of capital under the IMF EFF programme, the EU-Ukraine Association Agreement and the 
Comprehensive Programme of Ukraine's Financia l Sector Development Until 2020. Action plans 
adopted within these documents foresee gradual an d stepwise liberalization of foreign exchange 
regulation linked to achievement of certain macroeconomic indicators and delivery of required conditions rather than to strict deadlines. 
On enforcement of IP rights 
5.35.  Ukraine realizes the present challenges in this area and understands importance of 
Intellectual Property (IP) rights protection and enforcement for investment attractiveness. Thus, Ukraine has adopted several laws and regulations in  the field of intellectual property rights, and 
amended its Civil, Criminal and Custom Codes so as to bring relevant provisions in line with the 
WTO TRIPS Agreement.  
5.36.  Under the DCFTA with the EU, Ukraine seeks to approximate its Intellectual Property Rights 
legislation with the acquis communautaire.  
5.37.  On 28 January 2016, the Parliament of Ukraine adopted the Draft Law "On State Support of 
Cinematography" in the first reading. This draft law introduces amendments to the Law "On Copyright and Related Rights" concerning protection of copyright and related rights in the Internet. 
Governmental Draft Law "On amendments to certain Acts on protection of copyright and related 
rights in the Internet" is under discussion in the relevant Parliament's committees. To this end, the following draft amendments aim to further approximate Ukrainian legislation with EU regulations:  
 Draft Law "On Amendments to Certain Legislative Acts of Ukraine (concerning strengthening 
the enforcement of intellectual property)", wh ich envisages modifications to the Civil, 
Economic, Civil Procedure and Economic Procedure Codes concerning the procedure of 
compensation of harm for infringement of intellectual property rights, the circle of persons 
who have the right to apply for their rights pr otection, soliciting the evidence and securing 
the right to be provided with information in the cases of intellectual property rights infringement;  
 Draft Law "On Amendments to Certain Legislative Acts of Ukraine on Regulation of Copyright 
and Related Rights", which is aimed at introducing transparent, predictable and effective mechanism of ceasing violations of intellectual property rights and eliminating violations of 
IPRs in the Internet;  
 Draft Law "On Collective Management Organizations", which envisages actions to stop the 
uncontrolled growth in the number of collective management organizations.  
Border enforcement of Intellectual Property Rights  
5.38.  With respect to the border enforcement of IP Rights, Ukraine has recently developed the 
Draft Law "On Amendments to the Customs Code of Ukraine concerning the Protection of Intellectual Property Rights in Crossing Border of  Ukraine" as of 21 December 2015. It implements 
provisions of Regulation (EU) No 608/2013 of the European Parliament and of the Council of WT/TPR/M/334 • Ukraine 
 
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  12 June 2013 concerning customs enforcement of intellectual property rights. The draft law among 
other issues expands the list of objects of intellec tual property subject to protection when crossing 
the national border; introduces new definition of terms; strengthens measures to prevent and timely respond to movement of counterfeit goods in international mail or international express 
shipments; and introduces the option of pre- scheduled release of goods subject to customs 
clearance suspension based on suspicion of violating intellectual property rights.  
5.39.  Thus, the implementation of the EU IP po licies and enforcement of WTO rules and in 
particular strengthening enforcement capacity , are among the top priorities of Ukrainian 
Government.  
5.40.  Ukraine pays significant attention to the enforcement of current Ukraine legislation in the 
IPR area, including within the framewor k of the judicial system reform.  
5.41.  Before moving further to agriculture, I would like to assure you that we are not here to 
make idle promises. There is a great Ukrainian folk song named "You've lied to me". And this song is about a young man being in love with a young lady dreaming of going out with her. He invites 
her out every single day the whole week and she promises to come but never does. Just a small 
quote of English translation of this beautiful song.  
You said that on Monday  
We would come together for flowers  
I came but you didn't  You've lied, you've let me down  You've lied to me  
You've let me down  
You've driven me,  A young one, crazy  
You've said that on Tuesday  
You would kiss me 40 times  I came but you didn't  
You've lied, you've let me down  
You've lied to me  You've let me down  You've driven me,  
A young one, crazy  
5.42.  What I can promise you is that Ukraine is in the WTO neither to lie to you, not to let you 
down, nor to make you crazy. 
5.43.  And now let's get back to business.  
On agriculture sector 5.44.  As Ukraine's agricultural sector has a global importance, we understand why so many 
questions were raised on this matter. We view it  as an engine of economic development, and the 
whole world sees it as a guarantee of food se curity. Ukraine can contribute significantly to 
overcoming hunger and malnutrition worldwide. The Government currently implements a forward-looking structural reform of the agriculture focused on the future: comprehensive 
legislative and regulatory improvements form the basis for a sharp quality growth. This includes, 
among others, resolution of the long-term issue of private ownership of agricultural land; introduction of a system of WTO consistent tax incentives for the development of the processing 
industry and agroIT; a programme of systemic measures to promote Ukrainian goods in promising 
foreign markets; a programme to protect soil fertility and ensure environmental safety; and the ongoing programme for the development of agricultural cooperation. Besides, we bring our current 
system into full compliance with European requ irements to ensure safety and quality of food 
products of a new generation.  WT/TPR/M/334 • Ukraine 
 
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  Tax reform  
5.45.  Rationalisation of the taxation system in the agricultural sector with the elimination of 
existing drawbacks will make it fairer, reduce the share of the shadow economy and cut down the 
tax burden on legally operating entities. All this will improve the conditions for further 
development of agribusiness and export capacity.  
VAT regime  5.46.  The Tax Code establishes a special VAT regime for agriculture, fishery, and forestry, which is 
valid only until 1 January 2017. Under the special regime, a certain percentage of VAT is paid to 
the budget and the rest goes to a special account for the company's own use. The regime is only granted to companies with at least 75% of the costs of their goods and services related to agriculture.  
Deregulation, privatizatio n and good governance  
5.47.  Deregulation and privatization help to boost productivity and eliminate corruption in the 
agriculture sector.  
5.48.  The major deregulation measures implemented in 2015 in this field include:  
 quarantine certificates were abolished for internal transportation of grains and oilseeds, the 
timeframe for the issuance of phytosanitary certificates was reduced from 5 days to 
24 hours;  
 14 types of mandatory permitting documents and 6 types of mandatory licenses were 
abolished;  
 more than 50 other amendments to legislation were implemented.  
5.49.  Further measures are being taken to eliminate excessive regulation and administrative 
burden, improve technical regulations and licen sing procedures, simplify customs and tax 
regulation and eradicate corruption.  
5.50.  Reform and privatization of state-owned enterprises represents a major objective and 
challenge in the agricultural sector. Out of 86 sp ecific companies, 14 are in the process of being 
privatized. A major challenge in this complex process is to ensure that best management practices 
are applied by those companies. In this regard, managers of 90 state-owned agri-companies were 
appointed based on results of open competitions. Financial decentralization is also underway with transparent competition for government support and equal access for all entities. 
5.51.  All these measures have radically reduced corruption in agriculture. 
5.52.  Further measures require legislative and regulatory adaptation to EU standards. 
Strategy 2020  5.53.  Following inclusive consultations with Ukraine's civil society, business, international donors 
and other stakeholders, the Ministry of Agrari an Policy and Food drafted the Strategy for 
Agricultural and Rural Development for 2015–2020.  
5.54.  The Strategy covers 10 strategic directions, provides an integrated, inclusive, equitable and 
realistic strategic vision and policy framework for reforms in the agricultural sector.  
5.55.  The reforms are aimed to enhance competitiveness and efficiency of the agricultural sector, 
modernize it and strengthen its market positions, create favourable conditions for doing business.  
On sanitary and phytosanitary service measures  
5.56.  Turning to SPS measures. We stress again that ensuring an appropriate level of protection 
for human health, as well as for animals and plant life is a core governmental responsibility. WT/TPR/M/334 • Ukraine 
 
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  Ukraine is investing best efforts to guarantee complete transparency in application of sanitary and 
phytosanitary measures. This is based on our commitment to give priority to international standards developed by the Commission on Codex Alimentarius, the World Organisation for Animal Health (International epizootic bureau) and International Convention on Plant Protection.  
5.57.  Within the D СFTA framework, Ukraine will further embody principles of the WTO SPS 
Agreement and critically establish mechanisms and procedures to assistance and foster an 
appropriate trade in the covered products. To achieve the desired results it is necessary to 
gradually align the respective Ukrainian legislation with the EU regulations.  
5.58.  The newly established supervisory authority, the State Service of Ukraine on Food Safety 
and Consumer Protection, became operational as of 6 April 2016. The service represents Ukraine's 
competent authority in the field of sanitary and phytosanitary measures. The new service is 
committed to taking into full account risk-based approaches, transparency, impartiality and 
non-discrimination.  
5.59.  And now, to sum-up on agriculture and to keep you awake – an interesting fact about 
Ukraine. According to the World Street Journal and the Economist, beer and burgers sold in 
Ukraine are the cheapest in the world.  
On technical barriers to trade  
5.60.  Ukraine would like to draw Members' attention to positive gains of the reforms in the sphere 
of technical regulations, standards and conformity assessment that took place in accordance with the TBT Agreement and the DCFTA.  
5.61.  Ukraine further commits to continue the process of reforms in this sphere in a transparent 
manner. These progressive steps will be undertaken  in line with the Strategy on reforming the 
technical regulation system till 2020, adopted by the Government in 2015, pursuant to the provisions of the WTO TBT Agreement and in accordance with Article 54 of the DCFTA.  
5.62.  Ukraine confirms that in accordance with the effective Law of Ukraine "On Standardization", 
priority is attached to the development of voluntary standards for the application of national standards and aligned with international standards. If international standards are not taken as the 
basis for national standard, the National Standardization Body provides for a written explanation 
related to the request of all interested parties.  
5.63.  According to requirements of the WTO TBT Ag reement and the Code of Good Practice for 
Standardization, Ukraine sends notifications to the ISO and IEC on availability of working 
programme for national standardization and its annexes indicating sources where it is published 
and available. The catalogue of national standard s adopted in Ukraine is available on the website 
of the National Standardization Body.  
5.64.  As of now, Ukraine is not aware of any Member s' requests for draft standards included in 
our established working programme for national standardization, either via national inquiry point or ISONET center. Ukraine confirms that when such requests are received related to Ukraine 
national standards, Ukraine will provide the approp riate response, review comments and engage in 
consultations with interested parties.  
On trade remedies  5.65.  We are pleased to have an opportunity to increase public awareness about Ukraine's trade 
remedies legislation, practices, and policy. Ukraine would like to reassure Members that when 
adopting any trade relevant measure, Ukraine takes into account its WTO obligations seriously. We would like to stress that Ukraine will continue using available WTO trade remedies instruments to 
ensure fair trade and competition. In this regard, we consider that Ukraine's current measures 
comply with these obligations.  
5.66.  In addition, as acknowledged by several Members, Ukraine respects rulings by the DSB and, 
in this regard, Ukraine has undertaken to bring its measure into compliance with DSB rulings.  WT/TPR/M/334 • Ukraine 
 
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  On SOEs reform and privatization  
5.67.  SOEs reform and privatization was another concern raised. Members are aware of this 
historical background where soviet centrally planned economic policy created a very large number of SOEs on Ukraine territory, roughly 30 000 enterpri ses. After a series of privatization stages the 
number has been significantly downsized to a total of around 3 500 SOEs at this point which still 
makes such numbers extremely large.  
5.68.  Ukraine acknowledges that SOEs are generally understood to be non-efficient, tending to 
have corrupt practices, and due to the stro ng propensity for continual lossmaking very 
burdensome for Ukraine's economy.  
5.69.  Further reform of SOEs is one of the top pr iorities for the Ukrainian Government in 2016. 
The goal of reform is to build a healthy and tran sparent SOE management system that will enable 
Ukraine to apply best global management practices including OECD Guidelines.  
5.70.  Practically speaking, SOE reform is concentrated on improvement of their efficiency as well 
as transparent privatization of non-strategic SOEs.  
5.71.  Improvement of efficiency and reconsideration of corporate governance may be illustrated 
by recently adopted new transparent procedures of CEOs appointment, establishment of market 
level salaries for the CEOs of the largest SOEs, publication of annual reports on top-100 SOEs by 
the Ministry of Economic Development and Trade of  Ukraine, requirements for independent audits 
of SOEs financial reports, determination of clear objectives and corporate standards for SOEs.  
5.72.  Such initiatives significantly improved financial performance of SOEs, for instance top 17 
SOEs turned US$500 million losses in 2014 into US$100 million profits in one year.  
5.73.  Nine new CEOs of the largest SOE's have already been selected in 2015 and three in 2016, 
and by the way, two of the latest were appointed just yesterday as CEOs of two biggest state employers of Ukraine which is Ukrzaliznytsia (Ukrainian railway) and Ukrposhta (Ukrainian post). 
These comments are addressing the concerns of some delegations that our Report covered on the 
development of Ukrspyrt.  
5.74.  We are also waiting in the short run final adoption of a new law allowing the introduction of 
supervisory boards in state unitary enterprises making corporate governance structure similar to 
that of joint stock companies, increase of share of independent directors in supervisory boards of 
all SOE's to the majority and mandatory information disclosure for all SOE's.  
5.75.  Ukraine reckons that only strategic enterprise s should be owned by the State. Presumable 
grounds for that include such measures as preservation of critical infrastructure or supporting 
national security.  
5.76.  We believe that privatization of all non-strategic SOEs will allow to attract FDI and best 
international practice, eliminate corruption and bring additional revenues to the budget.  
5.77.  In 2015, we have reduced the list of SOEs banned for the privatization, and cancelled the 
mandatory sale of 5% and 10% of shares in SOE's capital before the privatization. In addition, 
State Property Fund capacity in terms of staff and advisors has been increased. Another good 
news for foreign investors, with new amendments in place parties are free to choose governing law and arbitration in the contract for purchase of objects subject to privatization.  
5.78.  Availing of this opportunity, we would like to bring additional attention of WTO Members 
towards upcoming privatization of Odessa Port Plant and Centrenergo power generating company, 
which have been estimated by the Ukrainian Government as two of the 22 most attractive privatization assets.  
Conclusion  
5.79.  In this statement I have tried to respond to the most salient themes from written questions 
and verbal interventions of the Members. I am aw are that several other specific questions were WT/TPR/M/334 • Ukraine 
 
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  raised by Members and I can assure you that Ukra ine has either already responded in writing or 
will do so in the upcoming weeks as per the relevant guidelines.  
5.80.  I would like to close my statement by exte nding my gratitude to all of our team who 
participated to respond to the WTO Member's questions. We deeply appreciate the serious interest 
of and engagement of all WTO Members in this review. And finally, my tremendous appreciation 
for the excellent and competent work goes to the Secretariat who enabled this review, as well as to our talented discussant and the Chair for successfully guiding us through this worthwhile 
process.  
5.81.  This is the path. This is the time. This is the opportunity. Ukraine is changing. Thank you. 
DISCUSSANT 5.82.  I would like to thank Her Excellency Ms Nataliia Mykolska, Deputy Minister of Economic 
Development and Trade of Ukraine, and her delegati on for the hard work put into this very first 
TPR and for providing detailed answers to th e many questions submitted by Members. I 
understand that you have received some addition al questions, for which you will provide answers 
in the coming weeks.  
5.83.  Your open and constructive approach throughout this exercise has allowed Members to learn 
a lot about developments in Ukraine since accession to the WTO eight years ago and your 
experiences made in handling very difficult situations. The additional information provided in your 
statement right now has helped further clarify issu es raised during the first day of this review. 
5.84.  In general terms, Members underlined their appreciation for Ukraine's wide-ranging 
commitments undertaken upon accession, its engagement in the multilateral trading system and 
the active role Ukraine plays in Geneva. Members also recognized that Ukraine has remained on its 
reform path with a continued engagement for further trade liberalization despite the challenges it is facing. Members commended Ukraine for its efforts to stabilize the banking and financial sector, 
which has contributed to a recent macroeconomic stabilization. Its good compliance record with 
the Dispute Settlement Body's recommendations an d rulings was also underlined. Furthermore, 
Members welcomed Ukraine's plans to privatize an additional important number of State Owned 
Enterprises. 
5.85.  Members applauded Ukraine's recent ratificati ons of the Trade Facilitation Agreement and 
the Protocol amending the TRIPS agreement. In  particular, many Members welcomed Ukraine's 
submission, earlier this week, of its instrument of accession to the plurilateral Agreement on 
Government Procurement. Some delegations expressed their hope that Ukraine would also join the 
extension of the Information Technology Agreement soon.  
5.86.  Of great interest to Members was Ukraine's Deep and Comprehensive Preferential Trade 
Agreement (DCFTA) with the EU. Members will certainly be keen to learn more on the DCFTA's 
implementation and its impact on trade at the second TPR of Ukraine.  
5.87.  While the general tone of interventions on Monday was positive in respect of Ukraine's 
efforts to cope with challenges and pursue refo rms, Members also expressed different concerns. I 
would like to recall some of them. 
5.88.  Vested interests and corruption remains a central concern which should be further 
addressed. Members highlighted in this context, but also more broadly in regard of government 
work, the importance of increasing transparency. I also heard about the necessity of an 
independent juridical system in order to improve the business environment in Ukraine and to foster foreign investment. 
5.89.  Members furthermore referred to the use of tr ade remedies by Ukraine and the importance 
of ensuring full compliance with the respective WTO obligations. I felt in some interventions a certain unease in respect of Ukraine's Law on Foreign Economic Activity, based on which unilateral 
measures may be adopted. If there are different perspectives on trade matters, they should not be 
addressed by unilateral measures but through WTO procedures, including the possibility of dispute settlement. WT/TPR/M/334 • Ukraine 
 
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  5.90.  Several Members expressed concerns regarding the delays and lack of transparency in 
Ukraine's VAT refund mechanism, which may have the same effect as an export tax. Difficulties encountered by businesses with Ukraine's customs valuation procedures were also mentioned in several interventions. Ukraine's use of import surcharges was questioned in respect of their WTO 
consistency. On TBT and SPS regulations, Member s welcomed Ukraine's progressive alignment to 
European and international standards. In this context, Ukraine was, however, encouraged to 
further enhance transparency and consultations of relevant stakeholders before adopting 
legislation. 
5.91.  Other queries concerned new regulations on intellectual property rights and the way certain 
provisions were being implemented and enforced. In particular, the issues of cybercrime and 
piracy, copyright, counterfeiting and royalties' retribution are of concern to Members. 
5.92.  In summary, Ukraine was rightly praised for its liberal trade policy and commitment to the 
multilateral trading system, of which Ukraine has established itself as an active Member. At the same time, a number of concerns were also aired. I hope that Ukraine will consider and possibly 
act upon the issues brought forward during this first Trade Policy Review. It would certainly be 
very much appreciated if, by the second TPR,  Ukraine could elaborate on its responses to 
apprehensions raised by Members and, in partic ular, demonstrate that the necessary steps have 
been taken to assure a favourable environment fo r businesses, trade and investment in Ukraine. 
5.93.  As a final remark, let me note once again that this first period under review since Ukraine's 
WTO accession was characterized by a very particular economic and political environment. 
5.94.  I am looking forward to the second TPR of Ukraine and wish the Ukrainian authorities 
perseverance and success in their endeavours during the coming years. 
EUROPEAN
 UNION 
5.95.  Let me first express our sincere appreciation to Ukraine's delegation for the timely replies 
they have provided and for the exhaustive presentation given on Tuesday and this morning. 
5.96.  The EU notes that this first review has b een very helpful for better understanding the 
reforms carried out since Ukraine's accession to the WTO. 
5.97.  The EU notes the largely positive attention shown by some Members to the DCFTA 
acknowledging that it offers Ukraine a framework for modernizing its trade relations and for boosting its economic development. 
5.98.  The EU is committed to work closely with Ukraine for the implementation of the DCFTA and 
we will support Ukraine to make the best use of opportunities opened by the DCFTA. 
5.99.  Concluding, the EU is confident that the new Government will continue the reform process 
launched in these last years and to see further signs of stabilization of its economy. 
UNITED
 STATES 
5.100.  We would also like to thank Ukraine for its written responses in a very timely manner and 
for its constructive participation in this TPR. 
5.101.  We have a few follow-up questions which we have submitted and obviously Ukraine has 
not been able to respond to those so in the future we hope to get responses regarding three areas where we would like a little bit of further clarification: adoption of Ukrainian regulations on genetically modified organisms, the law on the elec tric power industry, and concerns in the area of 
IPR protection. 
5.102.  Again, we thank Ukraine for their active and helpful participation. 
RUSSIAN
 FEDERATION WT/TPR/M/334 • Ukraine 
 
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  5.103.  I thank the Secretariat and the Ukrainian Government for the reports. One concern that we 
used to have and that we continue to have, un fortunately, is connected with prohibitions and 
restrictions which were imposed by the Ukrainian Government in respect of trade with the Russian Federation. I was clear on Tuesday on that. Today we have a new instrument added to the list of 
prohibitions against Russia: the Decree which prohibits a demonstration in Ukraine of Russian films 
and cartoons for children which were filmed after 1 January 2014. It is, from our point of view, a 
measure not trade friendly and we certainly would expect from the Ukrainian Government 
responses and explanations to those question s we have submitted on Monday and today. 
MS
 IRENE  YOUNG,  CHAIRPERSON 
5.104.  You will recall that on Tuesday I brought to your attention the request from UNIDO to 
attend a number of upcoming Trade Policy Reviews as  an observer on an ad hoc basis, because it 
was working closely with those countries to design Trade Capacity Building Programmes. The 
reviews in question are those of: Malawi, Honduras, Albania, United Arab Emirates, the Democratic Republic of Congo, Zambia, China, Sie rra Leone, Sri Lanka, and Guatemala.  
5.105.  Since Tuesday, Malawi, the UAE, Zambia, Sri Lanka and Guatemala have confirmed with 
the Secretariat that they have no objection to UNIDO's request. I therefore propose that we grant UNIDO observer status for the 2016 TPR meetings of these five countries on an ad hoc basis. 
Agree? It is so decided.  
5.106.  For the other TPRs covered by UNIDO's requ est, would the Members concerned, namely, 
Honduras, Albania, Democratic Republic of Congo, China, and Sierra Leone like to indicate their agreement or otherwise now? 
5.107.  I see no flags either. These Members concerned may need more time to consider. To 
simplify the proceedings so that we do not have to keep coming back to this issue at other TPR meetings, unless colleagues have other views, I suggest that the TPRB also agree now to grant 
UNIDO ad hoc observer status for the 2016 TPR meetings of Honduras, Albania, Democratic 
Republic of Congo, China, and Sierra Leone but on  the clear understanding that this decision is 
made on an ad referendum basis, subject to the agreement of the Members under review. That 
means when the Secretariat obtains the agreement of these Members in due course, it is deemed 
that other Members are also agreeable. Is this arrangement acceptable to all of us? It is so decided. 
5.108.  May I also remind colleagues that I still welcome any views that your delegations might 
have regarding the timing of the sixth appraisal of the TPRM. My consultations for this purpose are 
open until the end of this month. WT/TPR/M/334 • Ukraine 
 
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  6  CONCLUDING REMARKS BY THE CHAIRPERSON 
6.1.  This first Trade Policy Review has come at an important juncture for Ukraine. Having been 
through very challenging economic and political circumstances, there are encouraging signs that 
the Ukrainian economy is stabilizing and that growth may resume. This review has captured the 
latest development, and shown that the fruits of  ongoing reforms could be a strong stimulant for 
more to come. 
6.2.  O v e r  t h e  p a s t  t w o  d a y s  o f  m e e t i n g ,  w e  h a v e  h a d  a  u s e f u l  d i s c u s s i o n ,  t h a n k s  t o  t h e  
contributions made by the head of the Ukrainian delegation, H.E. Ms Nataliya Mykolska, Deputy 
Minister of Economic Development and Trade of Ukraine; our discussant, Ambassador Remigi 
Winzap, Permanent Representative of Switzerland to the WTO; and the 26 delegations that took 
the floor.  
6.3.  Many Members acknowledged that Ukraine's accession to the WTO in 2008 provided the 
foundations for an open, liberal, predictable, and transparent trade regime. In particular, Ukraine was commended for its low, fully bound tariffs an d for its extensive commitments under the GATS. 
In a more benign environment, these should lead  to flourishing trade and investment relations 
between Ukraine and the rest of the world. Some Members also complimented Ukraine for its active participation in the WTO and its acceptance of new obligations under the WTO framework, 
as seen in its recent ratifications of the Agreement on Trade Facilitation, the Protocol Amending 
the TRIPS Agreement, and the Agreement on Government Procurement.  
6.4.  Although Ukraine was given due recognition for its many notifications of legislation and trade 
measures, several Members would like to see greater transparency in Ukraine's agricultural 
support measures, the progress of its privatization and ongoing economic reforms, and the 
operation of its state trading enterprises. Members noted that the predictability of Ukraine's trade regime, while generally stable, had at times be en undermined by certain actions such as its 
attempt to renegotiate a multitude of tariff concessions, the imposition of temporary import 
surcharges, and the resort to temporary restrictions on exports and imports. Other areas of concern raised by Members included TBT and SPS measures, IP protection, and Ukraine's use of 
contingency measures. 
6.5.  While the adoption of new Tax Codes and Customs Codes were important reform outcomes, it 
was also noted that legislation was not applied uniformly across all customs offices, and that documentation requirements could still be cumbersome and excessive despite the move towards 
streamlined electronic procedures. Customs valuation and delays in VAT reimbursement were 
topics of widespread concern. It is, however, encouraging to know from the Deputy Minister that Ukraine is taking positive steps to address thes e issues. Separately, the rationale for measures 
such as a ten year export ban on timber, loca l content requirements, and price controls on 
alcoholic beverages was questioned. One Member highlighted certain trade-related measures which had significant effects on its bilateral economic relations with Ukraine. 
6.6.  Members observed that Ukraine had complemented its WTO commitments with free trade 
agreements that it had negotiated with key trading partners. The Association Agreement with the European Union stood out among them. Many Members saw it as a comprehensive agenda and catalyst for Ukraine to strengthen its protection of intellectual property rights, align its TBT and 
SPS standards with others', and adopt simplified, non-discriminatory and more transparent 
administrative practices.  
6.7.  Many Members acknowledged Ukraine's achievements in improving its legal and 
administrative framework affecting business, and its willingness to make further improvements. 
Some also encouraged Ukraine to continue its fight against corruption and build a fully independent and efficient legal system.  
6.8.  This Trade Policy Review will be successfully concluded within a month, as soon as Ukraine 
has responded to all outstanding questions. While Ukraine's current economic plight may have been driven by forces beyond the scope of our multilateral framework, the long-term strength of 
Ukraine's economy will certainly benefit from g ood governance and the sustained implementation 
of reforms, with the WTO being an important an chor in the process. Ukraine has expressed its 
determination to move ahead. Ukraine, we have heard loud and clear, is changing. As we have the WT/TPR/M/334 • Ukraine 
 
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  Deputy Minister's assurance that Ukraine is not here to make idle promises, we can expect that by 
the time of the next TPR, the benefits of Ukra ine's reform efforts should be clearly visible. 
__________