WORLD TRADE  
ORGANIZATION  WT/REG249/1 
27 August 2009 
 (09-4039) 
Committee on Regional Trade Agreements  
  
 
  
 
FACTUAL PRESENTATION 
 
Free Trade Agreement 
between 
Ukraine and Moldova 
(Goods) 
 
Report by the Secretariat 
 
 
 
This report, prepared for the consideration of the Free Trade Agreement between Moldova and Ukraine has been drawn up by the WTO Secretariat on its own responsibility and in full consultation with the Parties.  The report h as been drawn up in accordance with 
the rules and procedures contained in  the Decision for a Transparency 
Mechanism for Regional Trade Agreements (WT/L/671).  
 
Any technical questions arising from this report may be addressed to Catherine Hennis-Pierre (tel: +41 22 739 56 40).  WT/REG249/1 
 Page iii 
 
 
  TABLE OF CONTENTS 
 
 
  Page 
I. TRADE ENVIRONMENT 1  
II. CHARACTERISTIC ELEMENTS OF THE AGREEMENT 6  
A. BACKGROUND INFORMATION  6  
B. MARKET ACCESS PROVISIONS OF THE AGREEMENT  6  
1. General provisions 6  
2. Liberalization by Ukraine 7  
3. Liberalization by Moldova 9  
4. Rules of origin 10  
5. Export duties and other charges 11  
C. SECTOR -SPECIFIC PROVISIONS OF THE AGREEMENT  12  
D. REGULATORY PROVISIONS OF THE AGREEMENT  12  
1. Customs-related procedures 12  
2. Import licensing 12  
3. Payments 12  
4. Standards and technical regulations 13  
5. Safeguard mechanisms 13  
6. Anti-dumping and countervailing measures 14  
7. Subsidies, state-aid and competition 14  
8. State procurement 15  
9. Intellectual property provisions 15  
E. GENERAL PROVISIONS OF THE AGREEMENT  15  
1. Exceptions 15  
2. Accession and withdrawal 15  
3. Institutional framework 15  
4. Dispute settlement 15  
5. Relationship with other agreements concluded by the Parties 15  
 
ANNEX I  18  
 
ANNEX II  20  
 
ANNEX III  21  
 
  WT/REG249/1 
 Page 1 
 
 
 UKRAINE-MOLDOVA FREE T RADE AGREEMENT (GOODS) 
 
Factual Presentation by the Secretariat  
  I. TRADE ENVIRONMENT 
1. Moldova and Ukraine began their transition to a market-based economy after becoming 
independent from the Soviet Union in 1991.  Bo th countries experienced very strong economic 
contraction during 1990-94 (until 1998 in the case of  Ukraine), when income per capita more than 
halved in purchasing power terms.  Since 1994 in Moldova, and 1998 in Ukraine, real per capita 
incomes grew uninterruptedly until 2007.  Neverthe less, it took the two countries 16 years to recover 
real per capita income levels recorded in 1990.  In 2007, Moldova and Ukraine ranked 134
th and 49th 
respectively in terms of globa l merchandise exports and 118th and 42nd among the world's importers of 
goods respectively. 
05001,0001,5002,0002,5003,0003,5004,0004,5005,0005,5006,0006,5007,0007,5008,000
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007Purchasing power parities (in current  $)Chart I.1 - Real income per capita: 1990-2007
Moldova
Ukraine
Source : World Bank Development Indicators viewed at  http://ddp- ext.worldbank.org/ext/DDPQQ/report.do?method=showReport .
 
2. Moldova is a landlocked country located betw een Ukraine and Romania (see Map 1).  The 
two parties are of very different size; in 2007, Moldova had a total population estimated at 
3.8 million, and a GDP estimated at US$4.4 billi on, resulting in an aver age GDP per capita of 
US$1,260 in nominal terms.  Ukraine's GDP per capita stood in nominal terms at US$2,550 in 2007, 
with a population of 46 million and a GDP of US$140.5 billion.1   
                                                      
1 World Bank Gross net income per capita, Atlas method, viewed at: 
http://ddp-ext.worldbank.o rg/ext/DDPQQ/showRepor t.do?method=sh owReport. WT/REG249/1 
Page 2  
 
 3. Moldova has enjoyed uninterrupted income growth since 2000, supported by remittances 
(Moldova reported one of the highest proportions of  overall remittances to GDP in the world, 37% in 
2007
2), and growing foreign direct investment.   
Map 1:  Commonwealth of Independent States  
 
4. Moldova's exports of goods and services had b een relatively stable at about 50% of GDP, 
before declining to 43% of GDP in 2007.  It's overall  export growth has not been particularly strong   
(Chart I.2);  in contrast, imports have advanced dramatically after 2002, bot h from Ukraine and from 
the world in general.  This has resulted in a la rge merchandise trade deficit:  Moldova's exports and 
imports amounted to US$1.3 billion and US$3.7 billi on respectively in 2007, with a trade deficit in 
the order of US$2.5 billion.  Moldova's exports and imports to and from Ukraine amounted to US$168 million and US$687 million respectively in 2007. 
5. Ukraine is Moldova's third largest  export market (12.5% of total exports), after the European 
Union (50.6%) and before the Russian Federation ( 17.3%).  For imports, Ukrainian suppliers capture 
18.6% of the Moldovan market, in second place af ter the EU (45.6%), and before the Russian 
Federation (13.5%).  Although it remains an important  trading partner for Moldova, Ukraine has lost 
importance as a source of merc handise imports for Moldova over the decade: In 2007, Moldova's 
imports from Ukraine amounted to US$687 million, or 18.6% of its total imports.  This compared 
with imports of US$261 million in 19 96, corresponding to 24.4% of its to tal imports at that time.  In 
contrast, the Ukrainian market has grown as an ou tlet for Moldovan exports by Moldova to Ukraine 
                                                     
 
2 http://www.imf.org/external/p ubs/ft/scr/2008/cr08139.pdf.  WT/REG249/1 
 Page 3 
 
 
 amounted to US$168 million in 2007, or 12.5% of to tal exports, up from 5.9% of total exports in 
1996. 
0.00.51.01.52.02.53.03.54.0
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 20070.00.10.20.30.40.50.60.70.80.91.0US$billion US$billionChart I.2 - Moldova: Merchandise imports from and exports to 
world and Ukraine, 1996-2007
Source : UNSD, Comtra de database.Imports from Ukraine
Exports to UkraineTotal imports
Total exportsLeft hand sale: Right hand sale:
 
 
6. Ukraine's economic expansion was more erratic over 2000-07, with an average growth of 8% 
covering years of very strong expansion, such as 2004 (over 12% real GDP growth), and years of 
sharp economic slowdown (+2.7% in 2005).  Its ex ports of goods and services expanded on average 
by 4% (Chart I.3), also subject to strong fluctua tions reflecting developments in world markets for 
steel, Ukraine's main export product, and real currency appreciation.3   
7. The value of Ukraine's total merchandise expor ts and imports amounted to US$49.25 billion 
and US$60.67 billion in 2007.  Moldova is not a larg e trading partner for Ukraine:  Ukraine's exports 
to Moldova (US$911 million in 2007) amounted to about  1.9% of Ukrainian e xports, up from 1.7% in 
1996.  Ukraine's imports from Mo ldova amounted to US$168 million in 2007, corresponding to 0.3% 
of total imports, down from 0.4% in 1996.   
 
                                                      
3 IMF (2007), "Ukraine: 2006 Article IV Consulta tion—Staff Report;  Staff Statement;  and Public 
Information Notice on the Executive Board Discussion", viewed at 
http://www.imf.org/external/p ubs/ft/scr/2007/cr0750.pdf . WT/REG249/1 
Page 4  
 
 010203040506070
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 20070.00.51.01.52.0US$billion US$billionChart I.3 - Ukraine: Merchandise im ports from and exports to world 
and Moldova, 1996-2007
Source : UNSD, Comtrade database.Imports from Moldova
Exports to MoldovaTotal imports
Total exportsLeft hand sale: Right hand sale:
 
8. As can be seen from Chart I.4, the two countri es have a different export structure, dominated 
by exports of base metals (mainly steel products ) in the case of Ukraine, whereas Moldova exports 
mainly prepared foods (i.e. wine), followed by te xtiles and vegetables.  For Moldova wine exports 
alone account for 10% of exports and approximately 5% of GDP although recently affected by 
Russia's ban on wine imports from Moldova between March 2006 and October 2008.  Moldova also 
has a significant textiles industry, and is one of the few countries in the region to still attract 
investment in textiles production.  Exports of wheat and other vegetable products are also significant. 
9. The main commodities exported by Ukraine are ba se metals (Chart I.4), dominated by iron 
and steel.  Exports of minerals (10.5% of total exports) included refined pe troleum products.  Exports 
of agriculture products are also significant;  they  include wheat, barley, and sunflower seed.  The 
European Union (31.5% of Ukraine's exports) a nd the Russian Federation (22.5%) together account 
for more than half of Ukrainian exports.  Other important trading partners are Turkey, Belarus and 
the United States.  Annex Tables AI.1 and AI.2 provi de more details on the top exports of each Party, 
and their evolution between 1996- 97 and 2006-07.  A more detailed  presentation of bilateral trade 
between the Parties is contained in Annex Tables AIII.3 and AIII.4.   
10. Moldova's imports from Ukraine consist main ly of minerals (refined petroleum and 
electricity) followed by base metals.  Ukraine's im ports from Moldova consist mainly of prepared 
foods followed by metals, machin ery, minerals and chemicals.  WT/REG249/1 
 Page 5 
 
 
 Chart I.4
Ukraine and Moldova: product composit ion of merchandise trade, annual 
average 2005-07
Ukraine's imports from Moldova Moldova's imports from Ukraine
Source:  UNSD, Comtrade database.                Per cent
Total:  US$125 million Total:  US$561 million
Total:  US$47,248 million Total: US$2,892 million
Total:  US$40,630 million Total:  US$1,162 millionUkraine's global exports Moldova's global exportsUkraine's global imports Moldova's global imports Chemicals 4.0
Chemicals 8.9Plastics 5.6
Prepared foods 
27.2
Vehicles 5.8Pulp of wood 2.8
Machinery
14.3
Base metals
42.0Other 
7.1Other 
7.8
Chemicals 8.6Articles of stone 6.3
Minerals 22.6
Vehicles
 11.7
Animals 2.7
Minerals 10.5Machinery 5.5Other
4.4Other
5.6
Other 
5.9Raw hides 3.4
Minerals 
29.8
Machinery 
17.5Chemicals  
8.7Prepared foods 3.7Textiles 3.0
Textiles 20.0Pulp of wood 2.6Articles of stone 1.6Animals  2.0
Textiles 7.3
Footwear 2.8Prepared foods 
36.4
Vegetables 
12.4Chemicals 8.0Pulp of wood 6.3
Base metals 7.4
Metals 8.3Plastics 6.1
Prepared foods 6.5
Vegetables 4.4Minerals 36.7
Vegetables 3.3
Animals 3.7Base metals 
14.9Prepared foods 11.3Textiles 5.3
Metals 9.3Machinery 6.7Plastics 5.3Articles of stone 3.3Wood  2.7
Vehicles 6.7
Machinery 9.1Prepared foods 3.9Textiles 2.3Miscellaneous 2.6Machinery 8.2Vegetables 7.7
Pulp of wood 3.0Miscellaneous 2.3Other 
6.9
Plastics 1.9
Minerals  3.0Articles of stone 2.9
Metals 6.7Minerals 8.1
Wood 1.6Vegetables 3.1
Articles of stone 2.9
Raw hides 3.6Chemicals 1.8
 
 WT/REG249/1 
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 II. CHARACTERISTIC ELEMENTS OF THE AGREEMENT 
A. B
ACKGROUND INFORMATION  
11. After independence from the Soviet Union in 1991 both Moldova and Ukraine became 
members of the "Agreement on Creation of a Free Trade Area between the Commonwealth of Independent States (CIS FTA)", signed on 15 Apr il 1994, and its related "Protocol on Amendments 
and Supplements", dated 2 April 1999.
4  One of the objectives of the CIS FTA was (Article 1) 
"a gradual cancellation of customs duties, taxes and levies which have equivalent effect and 
quantitative restrictions in mutual trade".   
12. Accordingly, all customs duties and similar m easures were to be abolished except for those 
specifically included in lists of exceptions.  Such lists  were to form an integral part of the CIS FTA;  
they would also contain a "stage-by-stage cancella tion of such exceptions for a transitional period 
before the creation of a free-trade area".  Pendin g effective implementation, Article 3.3 of the CIS 
FTA foresaw that bilateral free-trade agreements would be concluded among the CIS Members.  The 
Free Trade Agreement between Moldova and Ukraine that was signed in 2003 constitutes one of these 
bilateral agreements.  
13. This Free Trade Agreement is not the first Agre ement between the Parties.  In August 1995, 
the Parties had signed a first Free Trade Agreement, that entered into force on 27 May 1996.  It covered all goods originating in Ukraine or in th e Republic of Moldova, with a few exceptions.  For 
Moldova, these exceptions from duty-free trade were:  undenatured ethyl alcohol;  cane or beet sugar 
and products thereof;  and sugar c onfectionary.  For Ukraine, they cons isted of sugar;  sugar syrups;  
sugar beet seed;  raw hides;  ferrous waste and scrap; and scrap ingots of iron or steel.    
14. Moldova became a Member of the WTO on 26 July 2001.  The Free Trade Agreement 
between Ukraine and Moldova was signed in Ch isinau on 13 November 2003.  The Ukrainian 
Parliament resolved on 19 May 2005 to ratify th e Free Trade Agreement with Moldova, postponing 
its entry into force until after Ukra ine's accession to WTO, on 16 May 2008.  The Agreement's date of 
entry into force was th erefore 16 May 2008.  The Agreement wa s notified to the WTO by Ukraine 
under Article XXIV.7(a) of GATT 1994 on 18 Augus t 2008 (WT/REG249/N/1).  The text of the 
Agreement is available on the WTO's RTA-IS Database.
5   
B. MARKET ACCESS PROVISIONS OF THE AGREEMENT  
1. General provisions 
15. The objectives of the Agreement are stated in Ar ticle 1: to establish a free trade area between 
the Parties' in compliance with the provisions of  the present Agreement as well as in compliance with 
the General Agreement on Tariffs and Trade (GATT 1994), specifically with Article XXIV and the 
agreement on the interpretation of Article XXIV GATT 1994;  to facilitate the liberalization of mutual 
trade and thereby the political and economic stability in the region, as well as the harmonious development and enlargement of world trade in co mpliance with the WTO principles;  to promote 
through the enlargement of a mutually beneficial tr ading regime the predictable, transparent and long-
term harmonious development of ec onomic relations between the Par ties, which would contribute to 
the improvement of living standards and conditions  of work, increase in production and financial 
stability;  and ensure equal conditions for fair  competition in trade between the Parties. 
                                                     
 
4 These agreements were notifie d to the WTO on 1 October 1999 (WT/REG82/N/1).  The CIS FTA 
entered into force on 30 Dece mber 1994, following ratification by three of its Parties. 
5 http://rtais.wto.org.  WT/REG249/1 
 Page 7 
 
 
 16. The Agreement covers all merchandise originating in the customs territories of the Parties.  
As specified in Article 2, "agriculture products " include commodities listed in sections 1-24 of the 
Harmonized System of Description and Coding  Commodities of 1996.  Similarly, "industrial 
products" cover commodities in HS sections 25-97. 
17. Under Articles 3 and 4, the Parties ban the application of duties and charges and all 
quantitative restrictions and measures of equivale nt effect on imports and/ or exports of products 
originating in their territories.  No quantitative rest riction or measure of equivalent effect on import 
and/or export shall be applied in trade between th e Parties except for (safeguard) cases stipulated in 
Article 22.  
2. Liberalization by Ukraine  
18. Ukraine's current applied tariff consists of 11,056  lines at the HS ten-digit level.  As can be 
seen from Table II.1, Ukraine's MFN applied ta riffs averaged 4.9% in 2009, with an ( ad valorem  
equivalent) maximum of 86.9%.  There are few non- ad valorem  tariffs, mostly covering food 
products.  Annex Table AII.1 indicates which product groups carry the highest tariffs. 
Table II.1  
Structure of Ukraine's applied basic tari ff on imports, 2008 (pre-accession) and 2009 
(Per cent) 
Moldova Description May 2008 MFN 2009a
 
Simple average applied rate 0.1 4.9 
WTO agricultural products 0.2 9.8 
WTO non-agricultural products 0.0 3.7 
Tariff range 0-50 0-86.9 
Tariff quotas (% of all tariff lines) n.a. 0.0 
Duty-free tariff lines (% of all tariff lines) 99.7 36.4 
Non- ad valorem  tariffs (% of all tariff lines) 0.3 1.7 
Total number of tariff lines 11,042 11,057 
n.a. Not applicable. 
 
a Including the March 2009 import surcharge and the special safeguards.  Ad valorem  equivalents of non- ad valorem  tariffs have 
 been provided by the authorities. 
Source:  WTO Secretariat calculations , based on data provided by  the Ukraine authorities. 
19. Under the Agreement, in May 2008, Ukraine's imports of goods of Moldovan origin were 
entirely duty-free and quota-free, with the exception of sugar and a few othe r products (see below 
Table II.3), and of products subject to special saf eguards (see below).  This corresponded to an 
average 4.9% tariff preference to Moldovan export ers relative to non-preferential trading partners 
(Table II.2).  Further information on Ukraine's tariff liberalization vis-à-vis  Moldova is provided in 
Annex III.  However, as the Agreement of 2003 ha d been preceded by the free trade agreement of 
1995, the conditions of trade between the Parties did not change as a result of the Agreement. 
Table II.2 
Ukraine:  Tariff elimination commitments under the Ag reement and corresponding average trade values for 2005-2007 
Value of Ukraine's imports from Moldova  
2005-2007 Duty phase-out period  Number of lines  % of total lines in 
Ukraine's tariff 
schedule  in million US$  % of Ukraine's total 
imports from Moldova 
MFN Duty free (2009) 4,027 36.4 33.2 26.6 
Duty-free under the 
Agreement (2009) 6,993 63.2 91.6 73.3 
Remain dutiable under 
the Agreement (2009) 37 0.3 0.1 0.1 
Source:  WTO estimates based on data provided by Ukra ine to the WTO-IDB and UNSD, Comtrade data. 
 WT/REG249/1 
Page 8  
 
 20. In 2009, 26.6% of Ukraine's imports from Moldova were duty-free on an MFN basis 
(Table II.2), amounting to US$33.2 million.  In c ontrast, some US$91.6 million of imports (73.3% of 
the total) came in under tariff preferences as they  were duty free only under the Agreement.  Some 
37 lines remained dutiable:  in 2004 Ukraine passed  resolutions excluding sugar and sugar syrup from 
free trade provisions applying to a number of prefer ential trading partners, including Moldova.  Since 
then, imports of these products (Table II.3) ar e subject to the same MFN import duties as for 
non preferential trading partners.  For raw cane sugar (HS 1701.11), Ukraine introduced tariff-rate 
quotas in 1999.  The in-quota duty rate is set at 2%, and the out-of-quota rate at 50%.    
Table II.3  
Sugar and other products imported from Moldova by  Ukraine and excluded from the duty-free regime, 2009 
Tariff line Product description MFN duty applied to Moldova 
1701 11 10 00  - Cane sugar for refining  
1701 11 90 00  - Other cane sugar 
1701 12 10 00  - Beet sugar for refining  
1701 12 90 00  - Other beet sugar 
1701 91 00 00  - Sugar containing adde d flavouring or colouring matter 
1701 99 10 00  - White sugar 
1701 99 90 00  - Other 50% 
1702 19 00 00  
1702 30 59 00  
1702 30 99 00  
1702 40 90 00  1702 60 95 00  
1702 90 71 00  
1702 90 79 00  1702 90 99  Other sugars, including chemically pure lactose, maltose, glucose and 
fructose, in solid form; sugar syrups  not containing a dded flavouring or 
colouring matter; artificial honey, whethe r or not mixed with natural honey; 
caramel: 5% 
2106 90 20 00  
2106 90 59 00  Food preparations not elsewhere specified or included 10% 
Source:  Resolutions of the Cabinet of Ministers of Ukraine; and da ta provided by the Ukrainian authorities.  According to 
the Ukrainian authorities, a protocol was signed by the Partie s on 21 April 2009 that specifies the list of products excluded 
by each Party from the duty-free  trade rule.  The list includes, in addition to the sugar products mentioned in this table, sug ar 
beet seed and ethyl alcohol. In  June 2009, this Protocol had not yet entered into force. 
 
21. In March 2009, Ukraine notified the WTO of the introduction, as of 10 March 2009, of an 
import surcharge of 13%6, applied to imports of certain produc ts.  The list of goods subject to the 
import surcharge initially included a variety of  products, but was by the end of March 2009 
circumscribed to motor vehicles and refrigerators  (HS tariff headings 8418, 8702, 8703, 8704).7  The 
surcharge applies in addition to the customs valu e of the goods and the customs duty, but before 
payment of internal taxes if any (e.g. VAT, excise  duties).  Thus, for example, if the MFN tariff is 
10%, the total duty including the surcharge will amount to 23%.    
22. The surcharge applies to imports from all s ources except from Ukraine's preferential trading 
partners, namely CIS partners such as Moldova, a nd the Former Yugoslav Republic of Macedonia.  It 
was justified by the authorities as a measure app lied for balance-of-payments purposes (import duty 
surcharge), under Article XII of the GATT 1994 and paragraph 9 of th e Understanding on the 
Balance-of-Payments Provisions of GATT 1994. 
                                                      
6 Ukraine State Customs Service, Order N° 213 of 10 March 2009, “On Interim Provisions of 
Procedure of Imposing by Customs Authorities of Inte rim Surcharge to Applied Import Tariffs Rates”.  
WTO document WT/BOP/N/66, 9 March 2009. 
7 Tariff headings 0202, 0203, 0206 - 0210, 0504 - 0506, 0509, 0511 (except item 0511 10 00 00), 0808, 
1601 - 1605, 1701, 1702 (exc ept for starch treacle in ite m 1702 30 99 00), 2204 - 2208, 2701, 42 03, 4303, 57, 
60 - 65, 6806, 6901, 7201, 7301, 7321, 8401, 841 4, 8418, 8501, 8516, 8702, 8703, 8704.     WT/REG249/1 
 Page 9 
 
 
 23. Table II.4 summarizes Ukraine's import measures (customs duties, special measures, import 
surcharge) by HS Section in 2009.  It is for pr epared foods and footwear products that Moldova 
enjoyed the largest tariff preference vis-à-vis  third country suppliers in 2009.  At the tariff heading 
level, Annex Table AII.2 shows that it is for the fo llowing prepared foods that this tariff preference is 
strongest:  malt and tobacco products are subject to MFN tariffs averaging 30-50%, but are duty-free 
when imported from Moldova;  sugar is also subject to tariffs of at least 50%, which since 2004 also 
apply to Moldovan shipments.    
Table II.4 
Ukraine:  Tariff elimination under the Agreement, by HS section 
(Per cent) 
Average under Agreement Average MFN rates HS section and description  since May 2008 2009a 
I Live animals and animal products 0.0 7.1 
II Vegetable products 0.0 9.1 
III Animal or vegetable fats and oils 0.0 8.6 
IV Prepared foods etc. 0.5 10.8 
V Minerals 0.0 2.6 
VI Chemicals and chemical products 0.0 3.2 
VII Plastics and rubber 0.0 3.7 
VIII Hides and skins 0.0 5.8 
IX Wood and articles 0.0 0.6 
X Pulp, paper etc. 0.0 0.0 
XI Textiles and textiles articles 0.0 5.7 
XII Footwear, headgear 0.0 10.0 
XIII Articles of stone 0.6 7.7 
XIV Precious stones, etc. 0.0 4.3 
XV Base metals and base metals products 0.0 1.7 
XVI Machinery 0.0 3.1 
XVII Transport equipment 0.0 7.6 
XVIII Precision equipment 0.0 3.3 
XIX Arms and ammunition 0.0 6.2 
XX Misc. manufactured articles 0.0 5.6 
XXI Works of art, etc. 0.0 0.0 
Total 0.1 4.9 
a For the calculation of tariff averages, specific rates without AVEs are excluded and the ad valorem  part of alternate rates are 
included.  
Source:   WTO estimates based on da ta provided by Ukraine. 
 
3. Liberalization by Moldova 
24. In 2007, the last year for which Moldova has provided tariff data to the WTO, its tariff 
contained 10,634 lines at the HS nine-digit level, some 3.7% of which was subject to non ad valorem 
rates:  some 224 tariff lines covering alcoholic beve rages and tobacco carried specific rates, whose 
incidence cannot be reflected in the tariff averag es presented below.  As can be seen from Table II.5, 
Moldova's simple average MFN tariff stood at 4.9% in 2007. 
Table II.5 
Structure of Moldova's applied tariff 
(Per cent) 
  Agreement since 2008  MFN 2007 
Simple average applied rate (of ad valorem  rates) 0.1 4.9 
WTO agricultural products 0.3 10.9 
WTO non-agricultural products 0.0 3.5 
Tariff range (of ad valorem  rates) 0-30 0-30 
Tariff quotas (% of all tariff lines) n.a. n.a. 
Duty-free tariff lines (% of all tariff lines) 99.0 46.6 
Non- ad valorem  tariffs (% of all tariff lines) 0.7 3.7 
Total number of tariff lines 10,634 10,634 
n.a. Not applicable. 
Source:  WTO Secretariat calculat ions, based on data provided by the Moldova authorities to the WTO-IDB.  WT/REG249/1 
Page 10  
 
 25. Moldova granted immediate and near-full duty-fr ee treatment to imports of Ukrainian origin 
upon the Agreement’s entry into force in 2008, with the exception of some 147 lines under which 
some US$3.4 million entered in 2006-07 on average.  Prior to that date, Moldova already granted 
duty-free treatment to Ukraine imports under their 1 995 bilateral agreement.  As can be seen from 
Table II.6, in 2007 (prior to entry into force of the Agreement), some US$403.3 million of imports 
from Ukraine entered Moldova duty-free on an MFN basis, corresponding to 67% of the total;  the 
remainder, about a third of Moldovan imports from Ukraine, was dutiable on an MFN basis.    
Table II.6 
Moldova:  Tariff elimination commitments under the Agreement and corresponding average trade values   
Value of Moldova's imports from Ukraine 
2006-07 Duty phase-out period Number 
of lines % of total 
lines in 
Moldova's 
tariff schedule in million 
US$ % of Moldova's total imports from Ukraine 
MFN Duty free (2007) 4,934 46.4 403.3 67.0 
Duty-free under the agreement (2008) 5,553 52.2 194.9 32.4 
Remain dutiable (2008) 147 1.4 3.4 0.6 
Source:   WTO estimates based on data provided by Moldova  to the WTO-IDB and UNSD, Comtrade data.   
 
26. A comparison of tariff rates applied by Moldov a to imports from Ukraine versus those from 
its MFN partners is displayed in Table II.7.  As a result of the Agreement, Ukrainian suppliers to 
Moldovan markets enjoyed highest tariff preferen ces (ranging between 11% and 12%) in prepared 
foods and footwear, live animals and animal pr oducts (HS Section I) and animal and vegetable 
products (HS Section III), with preferences of approximately 9%.    
Table II.7 
Moldova:  Tariff elimination under the Agreement, by HS section  
HS section and description  2007 average of MFN %  Average under Agreement (since May 2008) 
I Live animals and animal products 9.3 0.0  
II Vegetable products 9.9 0.0  
III Animal or vegetable fats and oils 6.1 0.0  
IV Prepared foods etc. 12.0 0.6  
V Minerals 1.4 0.0  
VI Chemicals and chemical products 2.8 0.0  
VII Plastics and rubber 4.2 0.0  
VIII Hides and skins 8.1 0.0  
IX Wood and articles 0.7 0.0  
X Pulp, paper etc. 4.9 0.0  
XI Textiles and textiles articles 6.3 0.0  
XII Footwear, headgear 11.9 0.0  
XIII Articles of stone 6.9 0.0  
XIV Precious stones, etc. 3.3 0.0  
XV Base metals and products 1.1 0.0  
XVI Machinery 1.6 0.0  
XVII Transport equipment 2.6 0.0  
XVIII Precision equipment 3.3 0.0  
XIX Arms and ammunition 10.0 0.0  
XX Misc. manufactured articles 6.3 0.0  
XXI Works of art, etc. 7.1 0.0  
Total 4.9 0.1  
 
Note: For the calculation of MFN averag es specific rates are excluded and the ad valorem  part of alternate rates are included. 
Source:   WTO estimates based on WTO IDB data. 
 
4. Rules of origin 
27. The Agreement's disciplines on rules of origin (Article 1) follows the Resolution on the  
CIS "Rules of Establishing the Country of Origin fo r Goods", which are common to all bilateral FTAs 
between CIS Members States.  The Resolution was approved in 1993, as amended and replaced by a 
new Decision (Box II.1).  This Decision was subseque ntly amended by a series of nine resolutions  WT/REG249/1 
 Page 11 
 
 
 adopted during 2005-2008.  The origin of the goods  is confirmed upon submis sion of the appropriate 
certificate (form CT-1). 
Box II.1:  Commonwealth of Independent States Rules of Origin  
The Commonwealth of Independent States (CIS) disciplines on rules of origin are set out in the Decision on 
Rules for the Determination of a Country of Origin of Goods, approved by the CIS countries on 30 November 
2000 and notified to the WTO on 31 March 2003 (WT/REG82/5).  This Decision and the Rules were signed 
and are currently implemented by all CIS Member Stat es, except Turkmenistan and Uzbekistan, both of 
which still apply the 1993 rules.  According to the Decision, a good is "originating" if  it is wholly obtained or subject to substantial 
processing/transformation within the signatory St ates' territories. The criterion of substantial 
processing/transformation of goods applies if third c ountries are involved in the production process in 
addition to the signatory States.
 
Imports from a CIS country covered by the wholly-obtained criterion include:  mineral resources, products of plant origin, animals and animal products, fish and fish  products, products extracted from the sea bed, waste 
and scrap, or products manufactured exclusiv ely from the materials indicated above.  
Simple assembly operations, the preparation of goods for sale or transportation; preservation during storage 
or transport; mixing operations which did not result in an essentially different product and the slaughter of 
cattle do not constitute sufficient transformation or processing (Paragraph 2). According to Paragraph 3, where raw materials, or materials which originate in one or more countries are 
subject afterwards to a stage-by-stage processing in other countries, are used in production of the final goods 
in one of the signatory States of th e Agreement, the co untry of origin of such goods shall be the country 
where it was subject to the last subs tantial processing/transformation.  
 
In Paragraph 4, the Decision indicat es three elements to define the substantial processing/transformation 
criterion:  (i) A change in the tariff classi fication at the heading level.  
 
(ii) Specific conditions for manufacturing and processi ng operations are specified for a large number of 
products (mainly food and chemical products) in a List of Co nditions annexed to the Rules; these 
conditions determine whether the goods can be considered to originate from the country where the 
operations took place (see Annex 1).   
(iii) the rule of ad valorem  percentage, whereby the value of the materials to be used or the added value 
must reach a fixed percentage in the price of finish ed products.  Value shall be calculated (a) for the 
materials imported on the basis of customs value of these materials at the time of their importation 
into the country of production;  and (b) for the finished products on the basis of the “ex-works” (“ex warehouse”) price of the seller. 
The Decision further requires the Par ties to produce a Certificate of Orig in (CT-1 form) or a declaration of 
origin of the goods to the customs bodies of the importing country in order to confirm the country of origin (Paragraph 10).  Such a document is issued in accordance with the national legislation of the exporting State. 
 
Source:  WTO document WT/REG82/5, 31 March 2003, and information provided by the Parties.  
 
28. In order to benefit from duty-free status, the goods must meet the rules of origin 
(see Box II.1);  they must be shipped directly from th e territory of one of the Parties;  and they must 
be purchased directly from an enterpri se or incorporated company in one of the Parties.  This rule is 
not fulfilled when goods are purchased in one Party from a representative of a company which is not  
resident of a Party.8  In effect, these "direct purchase and supply" rules require that imports arrive 
directly from CIS states and are not transported outside the CIS region.    
5. Export duties and other charges 
29. Ukraine maintains a number of export taxes ma inly on animal products, grains, and scrap 
metal (Table II.8).  Some of these taxes are not ap plicable to exports to Moldova as a result of the 
Agreement.   
                                                      
8 WTO document WT/ACC/UKR/65, 23 July 1999. WT/REG249/1 
Page 12  
 
 Table II.8  
Export duties levied by Ukraine, 1996 and 2009 
HS Tariff heading or code to 
which products belong Product description Duty in 1996 Duty in 2009 Applied to 
preferential 
trading 
partners, 
2009 
0102 90 Live cattle, heifers, 
breeding 75% but not less than €1,500 per 
tonne; or 55% but not less than €540 
per tonne, depending on use.   45% No 
0104 10 Live sheep  50% but not less than €390 per tonne 45% No 
4101 Cattle hides  30% but not less than €400 per tonne 29% No 
4102 Sheep or lamb skin  30% but not less than €1 per animal 29% No 
4103 90 Pigskin, other hides 27% but not less than €170 per tonne 29% No 
1204 00, 1206 00, 1207 99 Flax, Sunflower seeds Not applicable 14% No 
720299 80; 7204 10 00;  7204 21; 
7204 29 00; 7204 30 00; 7204 41 
10;  7204 41 91; 7204 41 99; 
7204 49 10;  7204 49 30;  7204 49 91; 7204 49 99; 7204 50 10; 
7204 50 90;  7218 10 00; Waste and scrap of cast 
iron, steel, etc. Not applicable   €18 per 
tonne, or 
27%, 
depending on tariff line No 
7401; 7402; 7403 12; 7403 13; 
7403 19; 7403 21; 7403 22; 7403 
23; 7403 29; 7404; 7405; 7406;  
7414 90; 7415 29; 7415 39; 7418 19; 7419; 7503; 7602;   
7802; 7902; 8002; 8101 91 90; 
8105 10 90; 8108 10 90; 8113 00 40  Copper, nickel, lead, 
aluminium, tungsten, 
cobalt: various products 
and scrap Not applicable 27% Yes 
Source:  WTO document WT/ACC/UKR/152, 25 Janua ry 2008, Table 20 (a), and informat ion provided by the authorities. 
 
C. SECTOR -SPECIFIC PROVISIONS OF THE AGREEMENT  
30. Article 7 specifies that the Agreement does not re quire the Parties to restrict in any way their 
respective internal policies on agriculture as long as they comply with the commitments taken by the 
Parties after their accession to the WTO, espec ially with regard to the WTO Agreement on 
Agriculture.  The Parties must inform each other about any change in their respective agricultural 
policies or about the application of measures which may affect their mutual trade in agriculture, as 
established under the Agreement. 
D. REGULATORY PROVISIONS OF THE AGREEMENT  
1. Customs-related procedures 
31. The Agreement did not introduce any new customs- related procedures.  Article 10 states that 
the Parties shall cooperate in reducing procedures and customs formalities, in particular as regards 
perishable agricultural products.  Under Article 11,  the Parties commit to ensure free transit of 
commodities originating in the customs territory of one Party through the territory of another Party in 
compliance with the WTO rules. 
2. Import licensing 
32. Any regime on import licensing covering goods orig inating in the territory of the other Party 
must be fully compatible with WTO provisions on import licensing, specifically as provided for in 
GATT Articles I and III and in the WTO Agre ement on Import Licensing (Article 5). 
3. Payments 
33. Article 8 states that payments in freely conv ertible currency related to trade between the 
Parties and remittance of such payments in the terr itory of one of the Parties, in which the creditor  WT/REG249/1 
 Page 13 
 
 
 resides, shall be without any restrictions.  The Parties shall refrain from applying any administrative 
restrictions on residents.  Any measure related to current payments concerning the movement of 
commodities shall conform with the terms of Arti cle VIII of the Agreement of the International 
Monetary Fund.  
4. Standards and technical regulations 
34. Article 8 establishes that all sanitary and phyto sanitary measures adopted by the Parties which 
may directly or indirectly have an impact on bilateral trade must satisfy the requirements set out in the relevant WTO provisions.  It further requires the Par ties to harmonize, where possible, such measures 
with existing international standards within the framework of the Codex Alimentarius Commission, 
the International Office of Epizootic and other in ternational conventions relating to the sanitary 
sector.  Similarly, Article 6 states that national technical rules and procedures which concern trade 
must be designed, adopted and applied in complia nce with the provisions of the WTO Agreement on 
Technical Barriers to Trade from the moment Ukraine accedes to the WTO. 
5. Safeguard mechanisms 
35. Article 22 of the Agreement allows Parties to adopt "special safeguards" in their bilateral 
trade in compliance with GATT Article XIX and th e WTO Agreement on Safeguards.  The procedure 
for applying safeguard measures is set out in Article 26 of the Agreement.  Accordingly, both Parties 
must first attempt to resolve any case through consu ltations, to be held within two months from the 
date of submission of the written request by a Party. 
36. The application of a safeguard measure must be  subject to periodic consultation within the 
Working Group established (under Article 27) to implem ent the Agreement, in order to discontinue it 
as soon as the conditions for the application are no lo nger justified.  Article 26 also sets out an 
emergency procedure under which a Party may take urgent actions necessary to protect its economy 
without prior consideration within the Working Group , providing the affected Party with a well-timed 
notification.  Subsequently, the Parties have the ob ligation to begin consulta tions within the Working 
Group. 
37. Since 2003, Ukraine has introduced a series of safeguard measures on imports, mostly based 
on minimum import prices (Table II.9).  These measur es are applied to all trading partners, including 
preferential trading partners.  The safeguard duty is  charged in addition to the normal customs duty. 
Table II.9 
Safeguard measures imposed by Ukraine, March 2009  
Product description Period  Type of measure Status 
 
Abrasive tools (HS 6804 22 
18) 18.2.2005- 
18.2.2009 Special duty imposed at the rate of 45.31%, but not less than €0.51/kg on 
goods, price of which does not exceed US$2.34 /kg. Repealed 
Ruberoid 
(HS 6807 10 10) 19.8.2005- 
19.8.2009 Special duty imposed at a rate of 38%. In force 
Ball bearings  
(HS 8482 10) 11.11.2006- 
11.11.2009 Special duty imposed at a rate of 5.73%, but not less than €0.13/kg on 
goods, price of which does not exceed US$2.95/kg. In force 
Stockings  
(HS 6002 92, 6002 93) 1.3.2007- 
1.3.2010 Special duty of US$2.78/kg, based on the difference between the minimum 
price of a product and its minimum customs value. In force 
Woven fabrics of cotton 
(HS 5208 22, 5208 29, 5208 32, 5208 39, 5208 52) 12.3.2007- 
12.3.2010 Special duty of US$0.57/square metr e based on the difference between 
minimum price and minimum customs value of a good.  In force 
Gas-discharge lamps (HS 
8539 31) 16.6.2007- 
16.6.2010 Special duty of US$0.481/item based on the difference between minimum 
price and minimum customs value of a good. In force 
Casing and pump-compressor 
seamless steel pipes 1.10.2008 – 
1.10.2011 Special quota imposed: 
First year – 14,504 t; 
Second year – 15,230 t; Third year – 15,955 t In force 
Source:   Information provided by the Government of Ukraine. WT/REG249/1 
Page 14  
 
 38. Article 25 allows the Parties to apply me asures for balance of payment purpose, in 
compliance with WTO rules.  In March 2009, Ukra ine notified the WTO of the introduction, as of 
10 March 2009, of an import surcharge of 13%
9, applied to imports of certain products.10  The list of 
goods subject to the import surcharge was in May 2009 circumscribed to motor vehicles and 
refrigerators (HS tariff headings 8418, 8703).  The surcharge applies to the customs value of the 
goods, before payment of internal taxes if any (e.g . VAT, excise duties).  It is in addition to the 
customs duty;  thus for example if the MFN tariff is 10%, the total duty including the surcharge will 
amount to 23%. 
39. The surcharge applies to imports from all s ources except Ukraine's preferential trading 
partners, namely CIS partners including Moldova, and the Former Yugoslav Republic of Macedonia.  
It was justified by the authorities as a measure a pplied for balance of payments purposes (import duty 
surcharge), under Art. XII of the GATT 1994 an d paragraph 9 of the Understanding on the 
Balance-of-Payments Provisions of GATT 1994. 
6. Anti-dumping and countervailing measures 
40. According to Article 20 and 21 of the Agreemen t, the Parties maintain their right to apply 
anti-dumping measures and countervailing to product s originating from their respective territories, 
under the conditions set out in the WTO Agreement.  
7. Subsidies, state-aid and competition 
41. Any subsidy or other State assistance adopted by the Parties must be in conformity with the 
WTO Agreement on Subsidies and Countervailing measures and the WTO Agreement on Agriculture 
(Article 17).  The Agreement requires the Parties to  ensure transparency in state assistance, including 
annual exchange of reports on the total amount of st ate support and its allocation.  Upon request by 
one of the Parties, the other Party must also provi de information on support schemes in individual 
cases.  
42. If a dispute arises with regard to State assist ance, a written request together with all the 
information relating to the dispute must be addr essed to the Working Group.  The Working Group is 
responsible for considering the case and deciding on th e dispute within 30 days from the date of the 
submission of the request.  The Party concerned must assist the Working Group in resolving the 
problem.  In the absence of a decision by the Working Group, the Party bringing the dispute is authorized to adopt and implement safeguard measur es.  Such measures must be (a) notified without 
delay, (b) "limited in space and time" and (c) no more burdensome than the damage caused (Article 26). 
43. Under Article 16, the Parties recognize as incomp atible actions that result or may result in 
restriction of competition, infringement of the leg itimate interests of business entities, of consumers, 
or are manifestations of unfair competition.  On these issues, the Agreement makes reference to the 
Agreement on Implementing a Concerted Antimonopoly Policy of 25 January 2000. 
                                                     
 
9 Ukraine State Customs Service, Order N° 213 of 10 March 2009, “On Interim Provisions of 
Procedure of Imposing by Customs Authorities of Interim Surcharge to Applied Import Tariffs Rates”.    
10 Tariff headings 0202, 0203, 0206 - 0210, 0504 - 0506, 0509, 0511 (except item 0511 10 00 00), 
0808, 1601 - 1605, 1701, 1702 (except for starch treacle in item 1702 30 99 00), 2204 - 2208, 2701, 4203, 4303, 
57, 60 - 65, 6806, 6901, 7201, 7301, 7321, 8401 , 8414, 8418, 8501, 8516, 8702, 8703, 8704.    WT/REG249/1 
 Page 15 
 
 
 8. State procurement 
44. Article 18 extends the Agreement's provisions to state procurement in the Parties, who 
commit to ensure free access, transparency, equal rights and obligations of business entities when 
carrying out state procurement. 
9. Intellectual property provisions 
45. Under Article 19, the Parties extend their coopera tion in trade related aspects of intellectual 
property rights.  Within the scope of the Agreem ent, the term "intellectual property" includes: 
copyright; trademark;  geographical indications; topologies of integral microcircuits; industrial 
samples; inventions;  and commercial secrets.  Paragraph 3 of Article 19 recognizes national and 
MFN treatment towards citizens of the Parties:  th e Parties shall provide to each others' citizens a 
regime not less favourable than the one they prov ide to their own citizens or citizens of third 
countries.  
46. With a view to enhancing cooperation, the Parti es agree to hold consultations at expert level 
especially with regard to compliance with interna tional obligations and conventions in the framework 
of international organizations such as WTO, WIPO as well as other forms of cooperation in 
intellectual property rights with third countries.  
E. GENERAL PROVISIONS OF THE AGREEMENT  
1. Exceptions 
47. The Agreement does not prevent the Parties fro m adopting any general and security exception 
as under Article XX of GATT 1994 (Articles 13 and 14). 
2. Accession and withdrawal 
48. The Agreement contains no specific provisions  on accession to the Agreement by third 
countries, or on withdrawal from the Agreement. 
3. Institutional framework 
49. The Parties agree under Article 27 to set up a Working Group which includes representatives 
of both countries.  The Working Group shall "exercis e control over the application of the Agreement", 
supervise the exchange of information between the Parties and hold consultations.  The Working 
Group will meet when necessary and at least once a year, alternately in Kiev and Chisinau.  As 
established in Article 28, each Party may, three m onths in advance, subm it a petition requesting to 
convene the Working Group.   
4. Dispute settlement 
50. As established in Article 30, the Working Gr oup is responsible for resolving disputes 
concerning the interpretation and implementation of  the Agreement through consultations; if the 
Working Group is unable to find a solution or if th e three month period expires without a decision, the 
appealing Party is entitled to take the issu e to the WTO Dispute Settlement Mechanism. 
5. Relationship with other agreements concluded by the Parties 
51. According to Article 29, in case of inconsistenc y, WTO rules prevail over the Agreement.   
Both Parties remain free, under the Agreement, to conclude trade agreements with third countries or WT/REG249/1 
Page 16  
 
 to participate in other forms of integration, such  as with the European Union, providing that the new 
obligations do not violate or affect negatively the "existing trade regime between the Parties". 
52. Regional Trade Agreements to which the pa rties are signatories (in addition to this 
Agreement), whether notified to the WTO or not, are listed in Table II.10 below.  WT/REG249/1 
 Page 17 
 
 
 Table II.10 
Ukraine-Moldova: Participation in other RTAs (not ified and non-notified in force), as of May 2009 
GATT/WTO notification Partner/ 
Agreement Date of Entry 
into force Type of  
Agreement Year WTO provision 
UKRAINE  
Belarus 11.11.06 Goods 2008 GATT Art. XXIV 
Common Economic Zone 20.05.04  Goods 2008 GATT Art. XXIV 
Kazakhstan 11.07.02 Goods 2008 GATT Art. XXIV 
Tajikistan 11.07.02  Goods 2008 GATT Art. XXIV 
FYROM 05.07.01 Goods 2008 GATT Art. XXIV 
Kyrgyz Republic 19.01.98 Goods 1999 GATT Art. XXIV 
Armenia 18.12.96 Goods 2004 GATT Art. XXIV 
Azerbaijan 02.09.96 Goods 2008 GATT Art. XXIV 
Georgia 04.06.96 Goods 2001 GATT Art. XXIV 
Uzbekistan 01.01.96 Goods 2008 GATT Art. XXIV 
Turkmenistan 04.11.95  Goods 2008 GATT Art. XXIV 
CIS 30.12.94 Goods 1999 GATT Art. XXIV 
Russian Federation 21.02.94 Goods 2008 GATT Art. XXIV 
GUAM (Georgia, Ukraine, Azerbaijan, 
Moldova) 10.12.03 Goods Not notified 
MOLDOVA  
CEFTA 01.05.07 Goods 2007 GATT Art. XXIV 
Kyrgyz Republic 21.11.96 Goods 1999 GATT Art. XXIV 
Armenia 21.12.95 Goods 2004 GATT Art. XXIV 
CIS 30.12.94  Goods 1999 GATT Art. XXIV 
GUAM (Georgia, Ukraine, Azerbaijan, 
Moldova) 10.12.03 Goods Not notified 
 WT/REG249/1 
Page 18  
 
 ANNEX I 
  
Table AI.1  
Moldova's top exports to the world, average 2005-07 (Million US$)  
Tariff 
heading Commodity Description 2005-2007 
220421 In containers holdi ng 2 litres or less 120.1 
080232 Shelled 38.1 
220429 Other 28.5 
701090 Other 27.3 
220430 Other grape must 27.2 
220820 Spirits obtained by distilling grape wine or grape marc 27.0 
200979 Other 23.7 
252020 Plasters 23.3 
151219 Other 22.7 
721391 Of circular cross-section measuring less than 14 mm in diameter 21.8 
120600 Sunflower seeds, whether or not broken. 21.0 
610910 Of cotton 20.7 
080810 Apples 18.8 
410120 Whole hides and skins 18.7 
761699 Other 17.6 
640399 Other 17.4 
151211 Crude oil 16.2 
170199 Other 13.7 
100190 Other 11.3 
570242 Of man-made textile materials 10.9 
570241 Of wool or fine animal hair 9.5 
620342 Of cotton 9.3 
100300 Barley. 8.3 
100590 Other 8.3 
620211 Of wool or fine animal hair 8.2 
Source:  UNSD, Comtrade data. 
  WT/REG249/1 
 Page 19 
 
 
 Table AI.2  
Ukraine's main exports to the world, average 2005-07 
Million US$  
Tariff 
sub-heading  Commodity Description  Average 2005-2007 
271000 Petroleum oils and oils obtaine d from bituminous minerals 1,754.9 
720711 - - Of rectangular (includi ng square) cross-section 1,499.5 
720712 - - Other, of rectangular (other than square) cross-section 1,445.7 
720851 - - Of a thickness exceeding 10 mm 1,251.9 
721420 - Containing indentati ons, ribs, grooves  1,223.0 
720720 - Containing by weight 0.25 % or more of carbon 1,184.0 
151211 - - Crude oil 846.4 
720839 - - Of a thickness of less than 3 mm 845.5 
310210 - Urea, whether or not in aqueous solution 793.5 
721391 - - Of circular cross-section measuring less than 14 mm in diameter 737.5 
720852 - - Of a thickness of 4.75 mm or more but not exceeding 10 mm 619.0 
720230 - Ferro-silico-manganese 556.8 
730511 - - Longitudinally submerged arc welded 535.0 
260112 - - Agglomerated 501.8 
100190 - Other 479.0 
100300 Barley 462.0 
722540 - Other, not further worked than hot-rolled, not in coils 449.1 
281410 - Anhydrous ammonia 404.3 
260111 - - Non-agglomerated 398.5 
720838 - - Of a thickness of 3 mm or more but less than 4.75 mm 394.0 
720110 - Non-alloy pig iron containing by we ight 0.5 % or less of phosphorus 376.7 
730439 - - Other 356.3 
281820 - Aluminium oxide, other than artificial corundum 315.8 
730429 - - Other 297.1 
271600 Electrical energy 282.1 
Source:  UNSD, Comtrade data. 
 WT/REG249/1 
Page 20  
 
 ANNEX II 
 
Table AII.1  
Ukraine:  MFN tariff headin g averages at or above 20%a, 2009, and corresponding averages in 2008 
Percent unless otherwise specified 
HS 
heading  Description  2008  
MFN 
 Average 
under 
Agreement, 
2008 2009a 
MFN 
 
1701 Cane or beet sugar and chemically pure sucrose, in solid form. 50.0 50.0 50.0 
2205 Vermouth and other wine of fresh grapes  €2/l  0.0 32.3 
6807 Articles of asphalt or of similar mate rial (e.g. petroleum)  37.4 27.4 30.3 
8703 Motor cars and other vehicles for the transport of persons  25.0 0.0 23.0 
4204 Articles of leather or of composition leather 25.0 0.0 22.5 
2208 Undenatured ethyl alcohol; spirits , liqueurs etc €.5/l 100%  0.0 20.2 
0410 Edible products of animal origin €0.2/kg  0.0 20.0 
0501 Human hair, unworked  20.0 0.0 20.0 
0502 Pigs', hogs' or boars' bristles a nd hair; badger hair  20.0 0.0 20.0 
0503 Horsehair and horsehair waste 20.0 0.0 20.0 
0505 Skins and other parts of birds, with  their feathers or down 20.0 0.0 20.0 
0506 Bones and horn-cores, unworked, defa tted, simply prepared  20.0 0.0 20.0 
0507 Ivory, tortoise-shell, whalebone a nd whalebone hair, horns 20.0 0.0 20.0 
0508 Coral and similar materials, unworke d or simply prepared 20.0 0.0 20.0 
0705 Lettuce (Lactuca sativa) and chicory (Cichorium spp.) 20.0 0.0 20.0 
0706 Carrots, turnips, salad beetroot, salsify, celeriac, radishes  20.0 0.0 20.0 
0708 Leguminous vegetables, shelled or unsh elled, fresh or ch illed. €0.3/kg 0.0 20.0 
0812 Fruit and nuts, provisionally preserved  20.0 0.0 20.0 
0814 Peel of citrus fruit or melons fresh, frozen 20.0 0.0 20.0 
1002 Rye €20/tonne 0.0 20.0 
1102 Cereal flours other than of wheat or meslin. 20.0 0.0 20.0 
1103 Cereal groats, meal and pellets. 20.0 0.0 20.0 
1105 Flour, meal, powder, flakes, granules and pellets of potatoes. €0.3/kg 0.0 20.0 
1210 Hop cones, fresh or dried, whether or not ground 20.0 0.0 20.0 
1213 Cereal straw and husks, unprepared, whether or not chopped 20.0 0.0 20.0 
1501 Pig fat (including lard) a nd poultry fat €0.15/kg 0.0 20.0 
1503 Lard stearin, lard oil, oleostearin, oleo-oil and tallow oil €0.15/kg 0.0 20.0 
1522 Degras; residues from the treatment of fatty substances  20.0 0.0 20.0 
1903 Tapioca and substitutes therefore pr epared from starch 20.0 0.0 20.0 
2006 Vegetables, fruit, nuts, fruit-peel and other parts of plants 20.0 0.0 20.0 
2302 Bran, sharps and other residues 20.0 0.0 20.0 
2303 Residues of starch manufacture and si milar residues, beet-pulp 20.0 0.0 20.0 
2305 Oil-cake and other solid residues,  whether or not ground 20.0 0.0 20.0 
2307 Wine lees; argol. 20.0 0.0 20.0 
2308 Vegetable materials and ve getable waste 20.0 0.0 20.0 
2403 Other manufactured tobacco and tobacco substitutes €2.5/kg 0.0 20.0 
4205 Other articles of leather or of  composition leather. 25.0 0.0 20.0 
a For the calculation of MFN aver ages, specific rates without ad valorem equivalents ( AVEs) are excluded;  but the ad valorem  
component of alternate or compound rates is included. 
Source:   WTO Secretariat calculations ba sed on data provided by Ukraine. 
 
 
  WT/REG249/1 
 Page 21 
 
 
 ANNEX III 
 
Indicators of trade liberalizatio n under the Ukraine-Moldova FTA  
  
1. A comparison between the scheduled elimination of tariffs applied to the Parties' mutual 
imports and the duty rates applied by Moldov a and Ukraine to MFN imports is shown in 
Tables AIII.1 (Moldova) and AIII.2 (Ukraine) below,  by agricultural, non-agricultural and all 
products.  The most recent applied MFN duty rates serve as a basis of comparison. 
2. In 2007, for the 53.4% of tariff lines where non-zero duties applied, Moldova had an average 
MFN tariff rate of 9.4%, as presented in Table AIII.1.   The remaining 46.6% of Moldova's tariff lines 
are duty-free at an MFN level.  Its (unweighted) average MFN rate (2007) is 4.9% on all goods, with a higher average tariff applied to agricultural goods than to non-agricultural products.  55.1% of MFN 
tariffs on non-agricultural products are duty-free,  while only 13.2% of agricultural tariffs are 
duty-free.  In comparison, the tariff applied by Moldova on imports from Ukraine is nearly all 
duty-free.   
Table AIII.1 
Moldova:  Indicators of tariff rates applied to MFN and Ukrainian imports (Per cent) 
All products  Agricultural products  Non-agricultural products  
Average 
applied tariff  Average 
applied tariff  Average 
applied tariff  Origin 
of 
goods  Year  
Overall  On 
dutiablea Share of 
duty-
free 
tariff 
lines  Overall  On 
dutiablea Share of
duty-free 
tariff 
lines  Overall  On 
dutiablea Share of 
duty-free 
tariff 
lines  
MFN 2007 4.9 9.4 46.4 10.9 12.7 13.2 3.5 7.8 55.1 
Ukraine 2008 0.1 18.5 98.6 0.3 18.5 95.5 0.0 0.0 99.5 
a "On dutiable" excludes duty-free tariff lines, and non- ad valorem  tariffs (on tobacco and alcoholic beverages). 
Source:  WTO estimates based on data provide d by Moldova to the WTO-IDB.  
3. Ukraine  has a variable MFN tariff structure with an (unweighted) average MFN rate of 4.9% 
on all goods in 2009, taking into account the 36.4% of tariff lines that are duty free at an MFN level (Table AIII.2).  The average applied tariff for agricu ltural goods (9.8%) is nearly three times that of 
non-agricultural goods (3.8%).  42.3%% of non-agricultural  products enjoy MFN duty-free tariffs, while 12.1% of agricultural products are duty-free.  In comparison, the tariff applied by Ukraine to 
Moldova is nearly all duty-free. 
Table AIII.2 
Ukraine:  Indicators of tariff rates applied to MFN and Moldovan imports 
(Per cent) 
All products  Agricultural products  Non-agricultural products  
Average 
applied tariff  Average 
applied tariff  Average 
applied tariff  Origin 
of goods  Year  
Overall
 On 
dutiablea Share of 
duty-free 
tariff 
lines  Overall  On 
dutiablea Share of
duty-free 
tariff 
lines  Overall 
 On 
dutiablea Share of 
duty-free 
tariff 
lines  
MFN 2009 4.9 7.7 36.4 9.8 11.2 12.1 3.7 6.4 42.3 
Moldova 2009 0.1 24.9 99.7 0.2 24.1 99.2 0.0 27.2 99.8 
a "On dutiable" excludes duty-free tariff lines. 
Source:   WTO Secretariat calculations ba sed on data provided by Ukraine. WT/REG249/1 
Page 22  
 
 4. A presentation of bilateral trade between the Pa rties is contained in Annex Tables AIII.3 and 
AIII.4.  Ukraine's main exports to Moldova consis t of petroleum products, electrical energy, and steel 
products.  They also include products such as ciga rettes and certain food products where Ukrainian 
exporters enjoy a tariff advantage under the Agreemen t.  Moldova's exports to Ukraine are dominated 
by wines and spirits, but also include plaste rs, vegetable oils a nd textile products.   
Table AIII.3  
Ukraine main exports to Moldova, average 200 5-07, and corresponding Moldovan MFN tariffs  
Tariff 
sub-
heading a Commodity Description Moldova's average 
MFN tariff 2007 Average 
export value, 
US$ million 
2005-07 
271000 Petroleum oils and oils obtained from  bituminous minerals, other than crude; 
preparations not elsewhere specified or included, containing by weight 70 % or 
more of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic con 0.0 104.6 
271600 Electrical energy. (optional heading) 0.0 53.5 
720449 - - Other 0.0 36.5 
240220 - Cigarettes containing t obacco 3 euro/1000 pieces 23.0 
721420 - Containing indentations, ribs, groove s or other deformations produced during 
the rolling process or twisted after rolling 0.0 20.9 
410110 - Whole hides and skins of bovine anim als, of a weight per skin not exceeding 
8 kg when simply dried, 10 kg when dry-salted, or 14 kg when fresh, wet-
salted or otherwise preserved 0.0 17.3 
230990 - Other 10.0 13.6 
270111 - - Anthracite 0.0 10.7 
391721 - - Of polymers of ethylene 4.3 10.2 
854459 - - Other 5.0 9.6 
271112 - - Propane 0.0 7.2 
180690 - Other 15.0 7.0 
440710 - Coniferous 0.0 7.0 
220300 Beer made from malt 0,25 euro/l 6.4 
300490 - Other 0.0 6.4 
110100 Wheat or meslin flour 0.0 6.3 
190530 - Sweet biscuits; waffl es and wafers 15.0 5.9 
730630 - Other, welded, of circular cross-s ection, of iron or non-alloy steel 0.0 5.9 
730660 - Other, welded, of non-circular cross-section 0.0 5.7 
252329 - - Other 10.0 5.6 
720230 - Ferro-silico-manganese 0.0 5.4 
271119 - - Other 0.0 5.2 
283620 - Disodium carbonate 0.0 4.8 
841810 - Combined refrigerator-freezers, f itted with separate ex ternal doors 0.0 4.7 
220710 - Undenatured ethyl alcohol of an al coholic strength by volume of 80 % vol. or 
higher 0,5 euro/l absolut 
alcohol 4.6 
a 1996 nomenclature. 
Source:  UNSD, Comtrade data.  WT/REG249/1 
 Page 23 
 
 
 Table AIII.4  
Moldova's main exports to Ukraine, average 2005-07, and corresponding Ukrainian MFN tariffs 
Tariff 
sub-
heading Commodity Description Ukraine's average MFN 
tariff 2009 Average export 
value, US$ million 
2005-07 
220421 -- In containers holding 2 litres or less 5.4 16.1 
252020 - Plasters 2.0 11.0 
220430 - Other grape must 10.0 7.8 
220820 - Spirits obtained by distilling gr ape wine or grape marc 14.4 7.7 
701090 - Other 5.6 5.3 
151211 -- Crude oil 16.0 3.8 
570242 -- Of man-made textile materials 8.0 3.6 
300490 - Other 0.0 3.3 
480524 -- Weighing 150 g/m² or less 0.0 3.1 
252329 -- Other 10.0 2.9 
220429 -- Other 13.9 2.9 
252010 - Gypsum; anhydrite 2.0 2.6 
480519 -- Other 0.0 2.6 
240110 - Tobacco, not stemmed/stripped 1.0 2.5 
120600 Sunflower seeds, whether or not broken. 6.7 2.4 
080610 - Fresh 10.0 2.2 
080810 - Apples 5.7 2.2 
570241 -- Of wool or fine animal hair 8.0 2.1 
870710 - For the vehicles of heading 87.03 6.2 2.0 
120590 - Other 0.0 1.8 
200979 -- Other 10.0 1.7 
680919 -- Other 5.0 1.7 
550932 -- Multiple (folded) or cabled yarn 2.0 1.6 
100190 - Other 6.7 1.6 
940360 - Other wooden furniture 0.0 1.3 
 
Note: For the calculation of MFN averages sp ecific rates without AVEs are excluded and the ad valorem  part of alternate rates are 
included. 
Source:  UNSD, Comtrade data;  WTO estimate s based on data provided by Ukraine. 
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