WORLD TRADE  
ORGANIZATION  WT/REG248/1 
19 August 2009 
 (09-3949) 
Committee on Regional Trade Agreements  
  
 
  
 
 
FACTUAL PRESENTATION 
 
Free Trade Agreement  
between 
Ukraine and the  
Former Yugoslav Republic of Macedonia  
(Goods) 
 
Report by the Secretariat 
 
 
 
 
This report, prepared for the considera tion of the Agreement between Ukraine and 
the Former Yugoslav Republic of Macedonia has been drawn up by the WTO Secretariat on its own responsibility and in full consultation with the Parties.  
The report has been drawn up in accordance with the rules and procedures contained 
in the Decision for a Transparency M echanism for Regional Trade Agreements 
(WT/L/671).  
 
Any technical questions arising from this report may be addressed to Mr. Roberto Fiorentino (tel: +41 22 739 5595).  WT/REG248/1 
 Page iii 
 
 
  TABLE OF CONTENTS 
 
 
  Page 
 
I. TRADE ENVIRONMENT 1  
A. MERCHANDISE TRADE  2  
II. CHARACTERISTIC ELEMENTS OF THE AGREEMENT 5  
A. BACKGROUND INFORMATION  5  
III. NATIONAL TREATMENT AND MARKET ACCESS PROVISIONS OF THE 
AGREEMENT 5 
A. IMPORT DUTIES AND CHARGES , AND QUANTITATIVE RESTRICTIONS  5  
1. General provisions 5  
2. Liberalization of tariff lines and trade 7  
(a) Ukraine 7  
(b) Former Yugoslav Repu blic Of Macedonia 11  
3. Tariff-rate quota 14  
4. Rules of origin 14  
B. EXPORT DUTIES AND CHARGES , AND QUANTITATIVE RESTRICTIONS  17  
C. REGULATORY PROVISIONS OF THE AGREEMENT  17  
1. Standards 17  
(a) Technical barriers to trade 17  
(b) Sanitary and phytosanitary measures 18  
2. Safeguard mechanisms 18  
(a) General safeguards 18  
(b) Specific safeguards 18  
3. Structural adjustment 18  
4. Anti-dumping and countervailing measures 18  
5. Customs related procedures 18  
D. SECTOR -SPECIFIC PROVISIONS OF THE AGREEMENT  19  
IV. GENERAL PROVISIONS OF THE AGREEMENT 19  
1. Exceptions 19  
2. Institutional framework 19  
3. Dispute settlement 20  
4. Relationship with other agreements concluded by the Parties 20  
5. Other provisions 21  
(a) Rules of Competition between Undertakings and State Aid 21  
(b) Intellectual Property Rights 22  
(c) Public procurement 22  
(d) Payments, transfers and capital movement 22  
ANNEX I 23 
ANNEX II 27 
 
  WT/REG248/1 
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  I. TRADE ENVIRONMENT 
1. The Free Trade Agreement between Ukrain e and the Former Yugoslav Republic of 
Macedonia (hereinafter referred to as the Agreement)  is the first agreement concluded by Ukraine 
with a non-CIS (Commonwealth of Indepe ndent States) country (See Table IV.1)1  Both countries 
began their transition to a market-based econom y in 1991 following their independence from the 
Soviet Union, in the case of Ukraine, and from th e former Yugoslavia, in the case of the Former 
Yugoslav Republic of Macedonia (hereinafter re ferred to as FYROM).  The aftermath of 
independence was marked by a sustained period of  economic contraction (1990-94 period) lasting 
until 1998 in the case of Ukraine.  Since 1994 in  FYROM, and 1998 in Ukraine, real per capita 
incomes grew uninterruptedly un til 2007 except for a slight drop in the case of FYROM in 2001. 
01,0002,0003,0004,0005,0006,0007,0008,0009,00010,000
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007Purchasing power parities (in current international $)Chart I.1 - Real income per capita: 1990-2007
FYROM
Ukraine
Source : World Bank Development Indicators viewed at  http://ddp- ext.worldbank.org/ext/DDPQQ/report.do?method=showReport .
 
2. FYROM is a landlocked country bordered by Serb ia, Kosovo, Bulgaria, Greece and Albania.  
The two parties are of very different size; in 2007, FYROM had a total population estimated at 
2 million, and a GDP estimated at US$7.6 billion , resulting in an average GDP per capita of 
US$3,470 in nominal terms.  Ukraine's GDP per capita stood in nominal terms at US$2,560 in 2007, 
with a population of 46 million and a GDP of US$140.5 billion.2  In terms of trade, with total 
merchandise exports of US$49.3 bill ion and imports of US$60.7 billio n, Ukraine ranked in 2007 as 
the world's 49th and 42nd exporter and importer respectively;   with merchandise exports of 
US$3.4 billion and imports of US$5.2 billion, FYROM ranked as the world's 112th exporter and 
106th importer in that year.  The two countries averag e trade/GDP ratios in period 2005-2007, was 97 
for Ukraine and 117.5 for FYROM. 
                                                      
1 The CIS currently include Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyz Republic, 
Moldova, Russian Federation, Tajikistan, Turkmenistan, Ukraine and Uzbekistan. 
2 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/REG248/1 
Page 2  
 
  A. M
ERCHANDISE TRADE  
3. Recent developments in global and intra-Party  merchandise trade are presented in Charts I.2 
and I.3.  With respect to global trade, FYROM' s total imports and exports in 2007 amounted to 
US$5.2 billion and US$3.4 billion respectively;  this represents over the period 1996-2007 an average annual growth of 11% and 10% respectively resulting in a constant and increasing trade deficit which 
in 2007 amounted to approximately US$1.8 billion.   
4. With respect to bilateral trade, Ukraine ranked in 2007 as FYROM's 15
th largest trading 
partner in terms of imports, accounting fo r 2% of its total imports, and its 33rd largest trading partner 
in terms of exports, accounting for 0.1% of its total exports.  During 1996-2007, FYROM's imports 
from Ukraine recorded an average annual percen tage growth of 11% reaching US$103 million in 
2007;  for exports, however, over the same period FYROM experienced an average annual decrease 
of 8% with its exports to Ukraine at US$2 million in 2007 down from US$4.8 million in 1996.3 
0.00.51.01.52.02.53.03.54.04.55.05.56.0
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 20070.000.050.100.150.200.250.300.350.400.450.500.550.60US$billion US$billionChart I.2 - FYROM: 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:
 
5. Ukraine's global merchandise imports and e xports in 2007 amounted to US$60.7 billion and 
US$49.3 billion respectively;  this represents over 1996-2007 an average annual growth rate of 11.9% 
and 12% respectively.  Since 2005, Ukraine has been running a growing trade deficit which in 2007 which amounted to approximately US$11.3 billion. 
6. With respect to bilateral trade, FYROM is not a large trading partner for Ukraine.  In 2007 
FYROM ranked as Ukraine's 80
th largest trading partner in terms of imports, accounting for 0.01% of 
its total imports and its 60th largest trading partner in terms of exports, accounting for 2.1% of its total 
exports.  During 1996-2007, Ukra ine's imports from FYROM grew, on average by 10% reaching 
US$8.3 million in 2007;  Ukraine's exports to FY ROM, however, recorded over the same period an 
average annual increase of 24% reaching US$97 million in 2007 up from US$9.5 million in 1996. 
                                                      
3 UNSD, Comtrade database (2007).  WT/REG248/1 
 Page 3 
 
 
  010203040506070
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 20070.000.100.200.300.40US$billion US$billionChart I.3 - Ukraine: Merchandise im ports from and exports to world 
and FYROM, 1996-2007
Note: Data not available for the period preceding 1996.
Source : UNSD, Comtrade database.Imports from FYROM
Exports to FYROMTotal imports
Total exportsLeft hand sale: Right hand sale:
 
7. The commodity structure of trade among the Parti es, as well as of their imports and exports to 
the world in the three years preceding entry into force of the Agreement (2005-2007), is shown in 
Chart I.4 on the basis of Harmonized System (HS) sections. As can be seen from Chart I.4, the 
two countries have a similar import and export struct ure;  for both countries minerals constitute their 
largest import product category averaging 29.8% a nd 21.6% respectively of Ukraine and FYROM's 
total imports;  machinery is Ukraine's second la rgest and FYROM's third largest import product 
category.  On the export side, base metals repres ent for both countries their largest export product 
category averaging 42% and 35.2% respectivel y of Ukraine and FYROM's total exports. 
8. The product composition of the Parties' bilateral tr ade also reflects certain  similarities in that 
their bilateral imports are not very diversified but are dominated by single product categories.  In the 
case of FYROM, base metals constitute 79.6% of its  imports from Ukraine, followed by minerals 
(6.8%) and machinery (4.7%);  prepared foods constitute 78.4% of Ukraine's total imports from 
FYROM, followed by machinery (10.3%) and textil es (2.6%).  For both countries, the European 
Union (EU-27) represents their major trading partne r in both imports and exports;  after the EU, the 
Parties' second largest exports markets are the Russian  Federation in the case of Ukraine and Serbia in 
the case of FYROM.  Other important trading partners common to both Parties are China and Turkey.  A more detailed presentation of bilateral trade betw een the Parties is contained in Annex Tables AI.3 
and AI.4. 
 WT/REG248/1 
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  Chart I.4
Ukraine and FYROM: product composit ion of merchandise trade, annual 
average 2005-07
Ukraine's imports from FYROM FYROM's imports from Ukraine
Source:  UNSD, Comtrade database.                Per cent
Total:  US$5 million Total:  US$94 million
Total:  US$47 billion Total: US$4 billion
Total:  US$40,6 billion Total:  US$2,6 billionUkraine's global exports FYROM's global exportsUkraine's global imports FYROM's global imports 
Machinery 12.7Plastics 5.6
Base metals 
35.2
Vehicles 5.8Base metals 14.6
Base metals
42.0Other 
10.6Other 
5.0
Chemicals 8.6Machinery 10.3
Minerals 21.6
Vehicles 11.7
Fats and oils 2.7
Minerals 10.5Chemicals  3.3Other
2.9Other
2.5
Other 
5.5
Minerals 29.8
Machinery 17.5 Chemicals  
8.7Prepared foods 3.7Textiles 3.0
Textiles 22.6Pulp of wood 2.6Other 
10.0
Animals  3.0
Textiles 10.7
Vegetables 3.9Prepared foods 
78.4
Prepared foods
10.4Base metals 17.4
Chemicals 7.2Prepared foods 
5.7
Vehicles 6.1
Vegetables 4.4Base metals 
79.6
Plastics 4.5
Minerals  
10.2Animals 3.9
Minerals 6.8Vegetables 1.7
Textiles 2.6Machinery 4.7Chemicals  2.3
Machinery 9.1Prepared foods 3.9Textiles 2.3Machinery 3.3Chemicals 2.3
Pulp of wood 2.5Vegetables 2.5
Footwear 2.6Minerals 1.8
Stone, cement 1.8
Stone, cement 1.9
 
  WT/REG248/1 
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  II. CHARACTERISTIC ELEMENTS OF THE AGREEMENT 
A. BACKGROUND INFORMATION  
9. The Free Trade Agreement between Ukrain e and the Former Yugoslav Republic of 
Macedonia (FYROM) was signed in Skopje on 18 January  2001 and entered into force on 5 July 2001 
for an indefinite duration.  
10. Ukraine notified the Agreement to the WTO under Art. XXIV:7(a) of GATT 1994 on 
18 August 2008 (document WT/REG248/N/1), following its accession to the WTO.4  The text of the 
Agreement is available, together with its rela ted Annexes, on the WTO Regional Trade Agreements 
Information System (RTA-IS).5 
11. The Agreement is composed of three Chapters , two Annexes and three Protocols.  Annex I 
lists the industrial products that are not covere d under HS Chapters 25-97 but are instead included 
under HS Chapters 1-24;  Annex II relates to the pr otection of intellectual property rights.  Protocols 
A and B list respectively the scheduled tariff elimin ation for industrial products and the concessions 
granted to agricultural and fisheries products;  Protoc ol C deals with rules of origin and administrative 
cooperation. 
Table II.1:  Structure of the Agreement 
Chapters, Annexes and Protocols Title/description  
Chapter I   Industrial Goods 
Chapter II   Agriculture, agricultural and fishery products 
Chapter III   General Provisions  
Annex I Referring to Article 2 and 10 
Annex II Referring to Article 28.(1) 
Protocol A Custom duties on imports and ot her fees having an equivalent effect 
Protocol B Bilateral privileges and exceptions in agriculture sector 
Protocol C Rules of origin and administrative cooperation methods 
12. Article 1.1 provides for the gradual establishment of a free trade area over a transitional 
period of no more than ten years from the date  of entry into force of the Agreement.  The 
commitments undertaken in the area of trade in goods have applied fully since the entry into force of 
the Agreement. 
III. NATIONAL TREATMENT AND MARKET ACCESS PROVISIONS OF THE 
AGREEMENT 
A. IMPORT DUTIES AND CHARGES , AND QUANTITATIVE RESTRICTIONS  
1. General provisions 
13. Trade in goods between the Parties is governed by the provisions of Chapters I, II and III 
which set out the product coverage of the Agreement, market access provisions and the 
applicable regulatory regime.  With respect to scope, the provisions of the Agreement apply to 
products originating in the Parties falling unde r the following categories: industrial products 
(HS Chapters 25-97), with the exception of products listed in Annex I (Article 2);  and agricultural 
and fisheries products falling within HS Chapters  1 to 24 plus the products listed in Annex 1 
(Article 10).6  Annex I reproduces, with a few excepti ons, the products contained in Annex 1 
                                                      
4 The Republic of Ukraine became Member of the WTO on 16 May 2008. 
5 See http://rtais.wto.org/ 
6 The Agreement follows the WTO definition of "agricultural" and "non-agricultural" products.    WT/REG248/1 
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  paragraph 1(ii) of the WTO Agreement on Agricultu re.  The main elements of these provisions and 
the Party's trade liberalization commit ments are summarized in Table III.1. 
14. The Parties commit not to introduce new customs duties on imports or charges having 
equivalent effect in their mutual trade as of en try into force of the Agreement (Article 4.1).
7  Tariffs 
on covered industrial goods (HS Ch apters 25-97), were eliminated upon entry into force of the 
Agreement except for those products scheduled to be phased out as listed in Protocol A.  In the case 
of FYROM, Annex 1 to Protocol A provides for two lists of progressive tariff elimination ending 
respectively in year seven and ten from the date of entry into force of the Agreement;  in the case of 
Ukraine, the phase-out periods provided in Annex 2 to  Protocol A are four and five years respectively 
from the date of entry into force of the Agreement.  In addition, Ukraine has listed in Attachment 1 
some products which are excluded from the coverage  of the Agreement;  these mainly relate to 
HS Sections VI (Chemicals), XVII (Trans port equipment), and XX (Miscellaneous). 
15. Concessions on agricultural and fisheries products are contained in Protocol B to the 
Agreement.  Annexes I and II to this Protocol list the products where preferential treatment has been 
granted by FYROM and Ukraine, respectively.  In  both cases concessions are in the form of in-quota 
duty elimination on a limited number of agricultura l products subject to tariff-rate quotas (TRQs).  
The Parties declare their readiness to develop trade in agricultural products and to explore possibilities 
to afford to each other further concessions through regular consulta tions within the Joint Commission 
(Article 11, and Article 4.2 to Protocol B).8 
16. The base rates used by the Parties for implem enting their respective tariff liberalization 
commitments are the MFN applied rates on 1 January 2001.  Should a Party apply, after entry into 
force of the Agreement, a tariff reduction on an erga omnes  basis, that reduced rate shall replace the 
basic duty (Article 3).9 
17. With respect to non-tariff measures, the Agreem ent provides for the elimination between the 
Parties, as of entry into force of the Agreemen t, of quantitative restrictions on imports and of 
measures having equivalent effect;  it also prohibits  the introduction of any such new restriction or 
measure (Article 8).  Article 4 to Protocol A, pr ovides that the Parties may continue to use their 
licensing system for imports and exports during the transition period ending no later than four years 
from the entry into fo rce of the Agreement.10  With respect to internal taxation, the Parties commit to 
refrain from applying measures or taking actions of an internal fiscal nature discriminating, directly or 
indirectly, between products origina ting in the Parties (Article 15). 
 
   
 
   
                                                     
 
7 This obligation also applies to custom duties of a fiscal nature except fees charges for customs 
documents processing and preparation (Article 6). 
8 See footnote 22. 
9 In the case of FYROM, the basic duties were re placed by the reduced MFN duties when it acceded to 
the WTO in 2003.   
10 The Parties' import licensing procedures are contained in WTO documents G/LIC/N/3/MKD/1 
(FYROM) and G/LIC/N/3/UKR/1 (Ukraine).  WT/REG248/1 
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  Table III.1:  Basic market access features provided under the Agreement 
 FYROM Ukraine 
Basic duty MFN 2001 MFN 2001 
Scope, trade 
coverage and 
transition periods The Agreement covers products falling under HS Chapte rs 1-97;  industrial and agricultural products are 
treated in different Chapters as follows: 
• Chapter I applies to industrial goods (HS Chapters 25 to 97 excluding products listed in Annex I);  it 
provides for duty elimination upon entry into force of  the Agreement, except for products subject to 
scheduled tariff elimination (Pro tocol A) and excluded products; 
• Chapter II applies to agricultural and fisheries produc ts (HS Chapters 1-24 including products listed in 
Annex I);  coverage is limited to certai n TRQ concessions as listed in Protocol B 
The maximum transition period provided under the Agreement is 10 years 
Schedule of tariff 
concessions HS-Chapters 1-24: 
• tariff reduction/elimination within TRQs for the 
products listed in Annex I to Protocol B 
HS-Chapters 25-97: 
• tariff elimination on entry into force except for 
products listed in Annex I and products 
scheduled for tariff pha se-out in Annex I, 
Protocol A: 
− List A: annual reductions from entry into 
force over 7 years; 
− List B:  annual reductions from entry into 
force over 10 years. HS-Chapters 1-24: 
• tariff reduction/elimination within TRQs for the 
products listed in Annex II to Protocol B 
HS-Chapters 25-97: 
• tariff elimination on entry into force except for 
products listed in Annex I and products 
scheduled for tariff pha se-out in Annex II, 
Protocol A: 
− List 1:  annual reductions of 25% from 
entry into force over 4 years; 
− List 2:  annual reductions of 20% from 
entry into force over 4 years. 
Exclusions HS-Chapters 1-24: 
• everything except concessions listed in Annex I 
to Protocol B HS-Chapters 1-24: 
• everything except concessions listed in 
Annex II to Protocol B 
HS-Chapters 25-97: 
• products listed in Attachment 1 
Source: Text of the Agreement between Uk raine and FYROM and its Annexes. 
2. Liberalization of tariff lines and trade11 
18. The elimination of tariffs applicable be tween the Parties is detailed in their 
corresponding schedules.  For each Party, tariff elimination started on entry into force of the 
Agreement (5 July 2001);  subsequent duty reduction s take place on 1 January of each year.  Tariff 
concessions vary between the Parties in accordance with their individual tariff liberalization schedule 
and groups of products (See Table III.1). 
(a) Ukraine 
19. Ukraine's tariff elimination under the Agreement is depicted in Table III.2.12   In 2001 17.3% 
of Ukraine's tariff lines were al ready duty-free on an MFN basis13 which corresponded to 15% of 
imports from FYROM for the period 1998-2000.  Uk raine's scheduled tariff liberalization under the 
Agreement took place in three stages, the most sign ificant of which was on entry into force of the 
Agreement when 56.8% of tariff lines became duty-free corresponding to 19% of imports from 
                                                      
11 Unless otherwise specified, all statistics contained in  the tables and charts have been prepared on the 
basis of data provided by the Parties. 
12 For tariff lines subject to TRQs only the out-of-quota duty is included in the tariff-related 
calculations. 
13 Ukraine's tariff is composed of 5,684 tariff lines at the HS 4, 6 and 9 digit levels;  86.5% of these 
lines are subject to ad valorem rates,  10.3% to specific duties and 3.2% to mixed rates. WT/REG248/1 
Page 8  
 
  FYROM;  in 2004 an additional 11.6% of tariff lines became duty-free, corresponding to 0.3% of 
imports from FYROM;  and in 2005 a further 0.1% of  Ukraine's tariff schedule became duty-free.  By 
the end of the transition period 85.8% of Ukraine' s tariff schedule had been liberalized, corresponding 
to 34.3% of imports from FYROM;  14.2% of Uk raine's tariff schedule remains subject to duty 
corresponding to 65.7% of its imports from FYROM. 
Table III.2 – Ukraine: Tariff elimination commitments  under the Agreement and corresponding average trade 
Duty phase-out 
period Number 
of lines % of total lines in Ukraine's 
tariff schedule Value of Ukraine's imports 
from FYROM (1998-2000) 
in million US$ % of Ukraine's total 
imports from FYROM 
(1998-2000) 
MFN duty free (2001) 982 17.3 0.4 15.0 
2001 3,231 56.8 0.5 19.0 
2004 660 11.6 0.0 0.3 
2005 5 0.1   
Remain dutiable 806 14.2 1.8 65.7 
Total 5,684 100.0 2.8 100.0 
Source :  WTO estimates based on da ta provided by Ukraine. 
20. The base rates used by Ukraine for implementi ng its tariff liberalization scheme provided for 
17.3% of the tariff or 982 tariff lines being duty free on an MFN basis before the entry into force of 
the Agreement.  Of the remaining 4,702 tariff lines,  2,797 hold a base rate of up to 10%, 816 between 
10% and 20%, and 321 between 20% and 30%;  768 lines had non ad valorem  rates.  Table III.3 
shows Ukraine's tariff elimination under the Agreem ent by year and duty range.  Most of Ukraine's 
tariff lines with a base rate of up to 10% were libera lized in 2001;  2.7% of tariffs in this range are 
excluded from liberalization.  Tariff lines with base ra tes of between 10% and 20% were liberalized in 
roughly equal numbers in 2001 and 2004; 0.7% of tariffs in this range are excluded from 
liberalization.  As for tariff lines with non ad valorem  rates, 68 such lines were liberalized in 2001, 
while 91.1% of such lines are excluded from libera lization;  By the end of the transition period, 
806 tariff lines (mostly tariff lines with non ad valorem  rates) corresponding to 14.2% of Ukraine's 
tariff schedule retained a duty. 
Table III.3 – Ukraine: Tariff elimination under the Agreement by year and duty range 
Schedule of Tariff Liberalization Excluded lines MFN duty range No. of lines 2001 2004 No. of lines % of lines in range 
Duty Free 982     
<=10 2,797 2,483 238 76 2.7 
<=20 816 394 416 6 0.7 
<=30 321 286 6 24 7.5 
Non ad valorem  768 68  700 91.1 
Total 5,684 3,231 660 806 14.2 
Source :  WTO estimates based on da ta provided by Ukraine. 
21. Table III.4 shows Ukraine's lib eralization commitments under the Agreement organized by 
HS Section product categories.  Of the 5,684 tari ff lines forming Ukraine's tariff schedule 982 were 
already duty free on an MFN basis in 2001.  The bu lk of trade liberalization occurred on entry into 
force of the Agreement with most of the tariff lin es under HS Sections V to XXI being liberalized;  
tariff liberalization is distributed across all of these HS Sections.  No liberalization occurs with respect 
to agricultural products and indeed the vast majority  of the tariff lines retaining a duty at the end of 
the transition period fall under HS Sections I to IV .  The average tariff that applies to the excluded 
lines is 16.2% compared to an overall MFN applied average of 7.7%. 
 
 
  WT/REG248/1 
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  Table III.4 - Ukraine: Tariff elimination under the Agreement, by HS section 
No of duty-free lines  HS section and description  MFN 
avg. %  Total No 
of lines  MFN 
2001  2001 2004 2005 Remain 
dutiable  Avg. tariff of 
excluded lines  
I Live animals and animal products 15.3 201 14    187 20.8 
II Vegetable products 9.1 302 57    245 18.9 
III Animal or vegetable fats and oils 2.5 74 3    71 2.6 
IV Prepared foods etc. 18.1 249 3    246 18.7 
V Minerals 3.3 145 33 112     
VI Chemicals and chemical products 5.8 980 268 694   18 8.9 
VII Plastics and rubber 5.2 293 73 220     
VIII Hides and skins 14.1 108 1 107     
IX Wood and articles 2.4 96 40 54   2 5.0 
X Pulp, paper etc. 9.1 187 54 133     
XI Textiles and textiles ar ticles 6.8 1252 285 299 660  8 4.4 
XII Footwear, headgear 17.7 61  61     
XIII Articles of stone 11.9 198  198     
XIV Precious stones, etc. 4.8 59 2 57     
XV Base metals and base metals  products 5.2 338 42 296     
XVI Machinery 7.5 666 61 600  5   
XVII Transport equipment 8.7 123 26 92   5 21.0 
XVIII Precision equipment 9.8 163 13 150     
XIX Arms and ammunition 14.1 11  11     
XX Misc. manufactured articles 16.6 172 1 147   24 21.5 
XXI Works of art, etc. 0.0 6 6      
Total 7.7 5,684 982 3,231 660 5 806 16.2 
Source:  WTO estimates based on da ta provided by Ukraine. 
22. Chart III.1 shows a comparison of average du tiable rates in those HS Sections where 
preferential duties remain.  The comparison is made  between Ukraine's average preferential and MFN 
rates for lines which remain subject to preferential duties only.  As it can be seen from the Chart, for 
all the HS Sections where tariff peaks remain afte r implementation of the Agreement was completed, 
the preferential duties are identical to the MFN duties indicating that no tariff reduction has taken 
place.  The average applied MFN rate in 2001 for th e HS Sections listed in the Chart range from 2.6% 
(HS Section III) to 21.5% (HS Section XX). WT/REG248/1 
Page 10  
 
  0 5 10 15 20 25XXIXXXIXXVIIIXVIIXVIXVXIVXIIIXIIXIXIXVIIIVIIVIVIVIIIIIIChart III.1
Ukraine: Average of dutiab le rates, by HS SectionHS Section  
Source :  WTO Secretariat estimates, based on data provided by Ukraine.Average rate of duty (%)
MFN Preferential
 
23. Chart III.2 shows a comparison of average du tiable rates in those HS Chapters where 
preferential duties remain at the end of the implem entation period.  The comparison is made between 
the average preferential and MFN rates for lines s ubject to preferential duties only.  For all the 
HS Chapters where tariff peaks remain after impl ementation of the Agreement was completed, the 
preferential duties are identical to the MFN duties.   The average applied MFN rate in 2001 for the 
listed HS Chapters ranges from 0.1% (H S Chapter 5) to 40% (HS Chapter 17).  WT/REG248/1 
 Page 11 
 
 
  05101520253035404550
1
2
3
4
5
67
8
9
10
11
1213
14
15
16
17
1819
20
21
22
23
2405101520253035404550
29
33
34
35
38
45
53
87
94Chart III.2
Ukraine: Average of dutiabl e rates, by HS Chapter
HS  01-24 HS 25-97Average rate of duty (%)  
Average rate of duty (%)  
HS Chapter HS Chapter
MFN Preferential* * *
Note: For tariff lines with non ad valorem  components, only the ad valorem  part of alternate rates are included in the calculation; 
          * HS Chapters 1, 14 and 22 contain specific duties.Source :  WTO Secretariat estimates based on data provided by Ukraine.
 
(b) Former Yugoslav Republic of Macedonia 
24. FYROM's  tariff elimination under the Agreemen t is shown in Table III.5.  In 2001 3% of 
tariff lines were already duty-free on an MFN basis which corresponded to 21.9% of its imports from 
Ukraine during 1998-2000.14  FYROM's scheduled liberalization under the Agreement provides for 
three stages of tariff elimination;  the most significant one took effect in 2001 with 51.8% of the tariff 
(5,435) becoming duty free and  corresponding to 42.4% of FYROM's imports from Ukraine.  An additional 882 lines or 8.4% of the tariff corres ponding to 0.3% of imports from Ukraine were 
liberalized in 2007.  The last stage of liberaliza tion is in 2010 when an additional 13.8% of FYROM's 
tariff, equivalent to 26.3% of its imports from Ukraine, is scheduled to become duty-free.  Once the Agreement is implemented, 2,413 tariff lines or 23% of FYROM's tariff will remain subject to duties 
for imports from Ukraine;  this figure corr esponds to 9.1% of its imports from Ukraine. 
Table III.5 – Former Yugoslav Republic of Macedonia 
Tariff elimination commitments under the Agreement and corresponding average trade 
Duty phase-out 
period Number of 
lines % of total lines in 
FYROM's tariff 
schedule Value of FYROM's imports 
from Ukraine (1998-2000) 
in million US$ % of FYROM's total 
imports from Ukraine 
(1998-2000) 
MFN duty free (2001) 314 3.0 4.7 21.9 
2001 5,435 51.8 9.2 42.4 
2007 882 8.4 0.1 0.3 
2010 1,446 13.8 5.7 26.3 
Remain dutiable 2,413 23.0 2.0 9.1 
Total 10,490 100.0 21.7 100.0 
Source :  WTO estimates based on data pr ovided by FYROM to the WTO-IDB. 
                                                      
14 The tariff is composed of 10,490 tariff lines at th e HS 10-digit level.  97% of these lines are subject 
to ad valorem  rates and the remainder (317 lines) are subject to compound duties. WT/REG248/1 
Page 12  
 
  25. The base rates used by FYROM for the implem entation of its scheduled tariff liberalization 
provided for 314 lines being duty free on an MFN basis be fore the Agreement came into force.  Of the 
remaining lines, almost half, 5,041 lines hold a MFN rate of up to 10%, 2,290 lines between 10% and 20%, 1,399 lines between 20% and 30%, and 739 and 163 lines respectively between 30% and 40% 
and between 40% and 50%;  227 lines have tari ff rates in excess of 50% while 317 have non ad 
valorem  rates of duty.  Table III.6 shows FYROM's ta riff elimination under the Agreement by year 
and duty range.  Most tariff lines with rates of up to 10%, as well as a third of the lines with rates 
between 10% and 20% and almost half of the lines with rates between 20% and 30% were liberalized 
when the Agreement came into fo rce in 2001.  Around half of the remaining lines in these duty ranges 
are scheduled for liberalization in 2007 and 2010.  Of the tariff lines with rates between 30% and 40% 
most are scheduled for liberalization in 2010.  By  the end of the implementation period 2,413 tariff 
lines are to retain a duty;  these include all of the tariff lines with rates between 40% and 50% and 
above and those with non ad valorem  rates of duty.  
Table III.6 – Former Yugoslav Republic of Macedonia 
Tariff elimination under the Agreement by year and duty range 
Schedule of Tariff Liberalization Excluded lines 
MFN duty range No. of lines 2001 2007 2010 No. of lines % of lines in  
range 
Duty Free 314      
<=10 5,041 4,065 194 181 601 11.9 
<=20 2,290 790 476 414 610 26.6 
<=30 1,399 549 171 435 244 17.4 
<=40 739 31 41 416 251 34.0 
<=50 163    163 100.0 
>50  227    227 100.0 
non ad valorem  317    317 100.0 
Total 10,490 5,749 882 1,446 2,413 23.0 
 
Note:  For tariff lines subject to TRQs only the out-of-qu ota duty is included in the tariff-related calculations. 
 
Source:  WTO Secretariat estimates, based on data provided by FYROM to the WTO-IDB. 
26. Table III.7 shows FYROM's liberalization comm itments under the Agreement organized by 
HS Section product categories.  Of the 10,490 ta riff lines which make up the tariff, 314 were duty free 
on an MFN basis when the Agreement came into fo rce.  The bulk of trade liberalization under the 
Agreement took place upon its entry into force in 2001 when rates on 5,435 lines went to zero;  a further 2,328 tariff lines spread out across HS Sectio ns V to XXI are scheduled for tariff liberalization 
in 2007 and 2010.  No liberalization occurs with re spect to agricultural products and indeed the vast 
majority of the tariff lines retaining a duty at the end of the transition peri od fall under HS Sections I 
to IV.  The average tariff that applies to the excluded lines is 24.8% compared to an overall MFN 
applied average of 14.6%. 
Table III.7 - Former Yugoslav Republic of Macedonia: Ta riff elimination under the Agreement, by HS section 
No of duty-free lines  
HS section and description  MFN 
avg. %  Total No 
of lines  MFN 
2001  2001 2007 2010 Remain 
dutiable  Avg. tariff 
of excluded 
lines  
I Live animals and animal products 17.3 792 1    791 17.3 a 
II Vegetable products 23.9 594 1    593 23.9 a 
III Animal or vegetable fats and oils 6.0 127     127 6.0 a 
IV Prepared foods etc. 36.2 860     860 36.2 a 
V Minerals 7.6 254 14 175 15 50   
VI Chemicals and chemical products 5.6 1,320 24 1,119 111 32 34 4.9 
VII Plastics and rubber 12.1 382 17 252 23 90   
VIII Hides and skins 17.8 139  74 30 35   
IX Wood and articles 9.1 186 2 161 9 13 1 7.0 
X Pulp, paper etc. 12.6 247 1 202 36 8   
XI Textiles and textiles artic les 20.5 1,294 8 352 446 481 7 2.0 
XII Footwear, headgear 25.8 114  27 16 71   
XIII Articles of stone 16.5 267 4 155 61 47   
XIV Precious stones, etc. 14.5 62 2 42 18    
Table III.7 (Cont'd)   WT/REG248/1 
 Page 13 
 
 
  No of duty-free lines  
HS section and description  MFN 
avg. %  Total No 
of lines  MFN 
2001  2001 2007 2010 Remain 
dutiable  Avg. tariff 
of excluded 
lines  
XV Base metals and base metals  products 7.9 1,119 28 841 50 200   
XVI Machinery 10.0 1,729 148 1,288 46 247   
XVII Transport equipment 10.0 333 20 194  119   
XVIII Precision equipment 7.5 399 36 358  5   
XIX Arms and ammunition 22.3 27  27     
XX Misc. manufactured articles 17.1 238 8 161 21 48   
XXI Works of art, etc. 7.0 7  7     
Total 14.6 10,490 314 5,435 882 1,446 2,413 24.8 
 
a Combination of ad valorem  and compound rates. 
Note:  For tariff lines subject to TRQs only the out-of-quota duty is included in the tariff-related calculations;  for tariff lines with 
non ad valorem  component only the ad valorem  part of alternate rates are included in the calculation.   
Source:  WTO estimates based on data provi ded by FYROM to the WTO-IDB. 
 
27. Chart III.3 shows a comparison between average dutiable rates in those HS Sections where 
preferential duties are to remain after implementa tion and the corresponding MFN rates.  As can be 
seen from the Chart, for all the HS Sections wher e preferential duties are to remain after the 
Agreement is implemented, their corresponding aver ages are equivalent to the average applied MFN 
rates indicating that no tariff duty reductions have been taken for the lines that are excluded from the 
Agreement.  The average applied MFN rate in 2001 for the HS Sections listed in the Chart range from 
2% in Section XI to 36.2% in Section IV. 
0 5 10 15 20 25 30 35 40XXIXXXIXXVIIXVIIXVIXVXIVXIIIXIIXIXIXVIIIVIIVIVIVIIIIIIChart III.3
FYROM: Average of dutiable  rates, by HS SectionHS Section  
Note: For tariff lines subject to TRQs only the out-of-quota duty is included in the tariff-related calculations;  for tariff li nes
          with non ad valorem  component only the ad valorem  part of alternate rates are included in the calculation.  
Source :  WTO Secretariat estimates, based on data provided by FYROM to the WTO-IDB.Average rate of duty (%)
MFN Preferential
 
 
28. Chart III.4 shows a comparison between average dutiable rates in those HS Chapters where 
preferential duties are to remain after implemen tation of the Agreement and the corresponding MFN 
rates.  As shown, the average on the preferential rate s is identical to that for the MFN rates, showing WT/REG248/1 
Page 14  
 
  no liberalization of these excluded lines.  The average applied rates for the HS Chapters of these lines 
ranges from 2% for Chapter 53 to 53.5% for Chapter 22. 
051015202530354045505560
1
2
3
4
5
6
78
9
10
11
1213
14
15
16171819
20
2122
23
2405101520253035404550
29
33
35
384553Chart III.4
FYROM: Average of dutiable rates, by HS Chapter
HS  01-24 HS 25-97Average rate of duty (%)  
Average rate of duty (%)  
HS Chapter HS Chapter
MFN Preferential
Note:     For tariff lines subject to TRQs only the out-of-quota duty is included in the tariff-related calculations;  for tarif f lines
              with non ad valorem  component only the ad valorem  p art of alternate rates are in cluded in the calculation.  
Source:  WTO Secretariat estimates, based on data provided by FYROM to the WTO-IDB. 
 
3. Tariff-rate quota 
29. Concessions on agricultural and fisheries products are contained in Protocol B to the 
Agreement.  Annexes I and II to such Protocol lis t the products where preferential treatment has been 
granted by FYROM and Ukraine, respectively.  In  both cases concessions are in the form of in-quota 
duty elimination on a limited number of agricultural pr oducts.  In the case of Ukraine, TRQs apply to  
22 products at the HS heading (4-digit) or sub-head ing (6-digit) levels (See Annex Table AII.1);  in 
the case of FYROM, TRQs apply to 16 products also  at the HS heading or sub-heading levels 
(see Annex Table AII.2).  According to the Parties the TRQs are subject to renegotiation in 2010.  
4. Rules of origin 
30. As stated in Article 24, Protocol C and its Anne xes set out the rules of origin (RoO) that apply 
to products covered under the Ag reement and the disciplines related to customs and administrative 
co-operation between the Parties (See Table III.8).  Ar ticles 2-14 of Protocol C deal with the rules of 
origin themselves;  Articles 15-27 with proof of origin and supporting documentation as specified in 
Annexes III to Protocol C;  and Articles 28-32 set out the arrangements for administrative cooperation 
(see paragraphs 47 and 48). 
 
  WT/REG248/1 
 Page 15 
 
 
  Table III.8 – Table of content of  Protocol B and its Annexes 
Protocol and Annexes Title/Description 
Protocol C: Rules of origin and methods of administrative cooperation 
 Chapter I (Art.1) General provisions 
 Chapter II (Art. 2-10) Definition of the "originating product" 
 Chapter III (Art. 11-13) Territorial requirements 
 Chapter IV (Art. 14) Refund of the customs dut y and exemption from payment of the customs duty 
 Chapter V (Art. 15-27) Certificate of origin 
 Chapter VI (Art. 28-32) Administrative cooperation arrangements 
 Chapter VII (Art. 33-35) Closing provisions 
Annex I Introductory notes 
Annex II List of treatment or processing methods require d to be carried out on non-originating materials 
Annex III Certificate of origin EUR.1 a nd application for its issuance 
 
Source:   Protocol C to the Agreement and its Annexes. 
31. The basic requirements for a product to be c onsidered originating (Articles 2 and 6 of 
Protocol C) are: 
(a) it is wholly obtained in one of the Parties;  or 
(b) the non-originating materials incorporated in the product have been “substantially 
modified or processed” in the Parties, within the meaning of Article 5;15 
32. The Agreement does not provide for regime-wide ru les of origin;  rather it lists (Annex II to 
Protocol C) the specific criteria that non-originatin g materials have to meet for a good incorporating 
such materials to acquire origina ting status.  The rules are generall y chapter-specific with exceptions 
at the tariff heading level (CTH 4-digit).16  Origin is conferred according to four main criteria being 
applied either independently or in combination w ith each other as the case may be.  These are: the 
"wholly obtained" (WO) criteria requiring that "all the materials of the chapter are wholly obtained";  the "change of tariff heading" (CTH) criteria requiring non-originating materials to fall under 
headings other than that of the product;  the im port content test (MC) requiring the value of the 
non-originating materials to not exceed a given percentage of the ex-works price of the product;  and 
the technical rule (TR) which sets out the work processes that non-originating materials have to 
undergo. 
33. The WO criteria applies to products falling under HS Sections I and II (live animals and 
vegetable products – HS Chapters 1 to 14) excep t for the headings listed under Chapter 13 where an 
MC rule of 50% applies.  The WO criteria also applies to certain products under HS Section IV 
(prepared foodstuffs – HS Chapters 16 to 24);  the remaining products under th at Section are subject 
to the CTH requirement often in combination with  a MC rule of 30% for materials of Chapter 17 
(sugar).  The rule most widely used for produc ts falling under the other HS Sections is the 
CTH requirement at the heading level (CTH 4-dig it);  the rule allows in some cases (mainly 
HS Sections VI and VII – chemicals and plastics) the use of materials from the same heading as the final product provided that their total value does not exceed a certain percentage (usually 20%) of the 
ex-works price of the product.  The import content test (MC) is also widely used throughout the 
Agreement.  It is a standalone rule for products  falling under HS Section XIX (arms and ammunition) 
and for several products falling under HS Sections VI I, XVII (vehicles) and XVIII (optical products);  
                                                     
 
15 Article 5 specifies that products  which are not wholly obtained are considered to be sufficiently 
processed or reprocessed when the conditions set out in th e list in Annex II are fulfilled.  Article 5 also provides 
for a "tolerance rule" (see paragraph 35). 
16 In Annex II to Protocol C most Chapters are preceded by an "ex" signifying that th eir corresponding 
rule(s) in columns three and four to the Annex apply to the Chapter "except for" the tariff headings as listed 
directly below the Chapter.  In the absence of an "e x" the rule applies to the Chapter without exceptions. WT/REG248/1 
Page 16  
 
  as a supplementary rule to CTH for products falling under HS Sections XV (base metals) and XVI 
(machinery);  and as an alternative rule for prod ucts falling under HS Sections VI, VII, XVI and 
XVII.
17  The limit allowed (in value terms) for non- originating materials is normally 40% of the 
ex-works price of the product;  however, depending upon the product different thresholds may apply 
(ranging from 20% to 50%).  A technical test require ment is the main rule for most products falling 
under HS Sections V (minerals), VI, VIII (raw hides and skins), IX (wood), and XI (textiles). 
34. With regards to cumulation, Article 3 provides for bilateral cumulation between the Parties.  
According to this principle, products of a Party wh ich incorporate materials originating in the other 
Party will be considered as originating if they are obtained there and have undergone working or 
processing which go beyond the operations referred to in Article 6.18   
35. Article 5 provides for an "absorption principle"  whereby a non-originating material which has 
acquired originating status by meeting the processing  requirement set out in Annex II to Protocol C, 
will be considered 100% originating once incorporated  into a final product.  Paragraph 2 of the same 
Article provides for a "tolerance rule" whereby non- originating materials, which, according to the 
conditions set out in Annex II to Protocol C should not be used in the manufacture of a product, may 
nevertheless be used provided that (i) their total value does not exceed 10% of the ex-works price of 
the product, and (ii) any of the percentages in Anne x II to Protocol C are not exceeded.  The tolerance 
rule of Article 5.2 does not apply to textiles and clothing (HS Chapters 50-63).19 
36. Chapter III deals with the "territorial requirements"  relating to rules of origins.  Article 11 sets 
out the "principle of territoriality" meaning that as a general rule the working or processing of goods must take place in the territories of the Parties;  failure to do so will result in the loss of originating 
status.  The Agreement does, however, permit outwa rd working and processing of materials exported 
from, and subsequently re-imported by, the Parties, subject to certain conditions  (Article 11:3 and 4 of 
Protocol C).
20  These include that the materials are wholly obtained in the Parties or have undergone 
working or processing beyond those referred to in Article  6 to Protocol C;  and that the re-imported 
goods have been obtained by working or processing the exported materials and that the total value 
added acquired outside the Parties does not exceed 10%  of the ex-works price of the final product.  
Articles 12 and 13 of Chapter III set out respectively provisions related to the "direct transport" of 
goods and goods sent to third countries for "exhibition" purposes. 
37. Article 14 of Chapter IV prohibits the ref und of customs duties paid on non-originating 
materials used in the manufacture of products originati ng in the Parties.  This drawback rule applies in 
respect of materials which are of the kind to wh ich the Agreement applies;  however, it does not 
preclude the application of an export refund system for agricultural products.  Article 14.6 allows the 
Parties to use customs duty refunds of, or exempt from, customs duties or charges having an equivalent effect applicable to non-originating materials used in the manufacture of originating 
products, subject to the payment of fixed customs duties – 5% for products falling within Chapters 25 
to 49 and 64 to 97 and 10% for products falling within HS Chapters 50 to 63.
21  
                                                      
17 Column 3 of Annex II to Protocol C describes the specific rule.  When a rule appears in column 4, 
either rule can be applied. The MC requirement esta blishes the maximum value of non-originating materials 
allowed in the final product, expressed as a percentage of the ex-works price of the product. 
18 Article 6 lists the operations that are considered as insignificant transformation or processing to 
confer the status of originating products. 
19 Special "tolerance rules" apply to certain textile products made of a mixture of materials (see note 5 
of Annex I to Protocol C). 
20 These provisions do not apply to products of Chapters 50 to 63 of the Harmonized System. 
21 According to the Parties the provisions of Article 14.6 have been suspended since 31 December 2002 
and are no long er applicable.  WT/REG248/1 
 Page 17 
 
 
  Box III.1:  Rules of Origin:  Basic Features at a Glance 
• No single rule of origin methodology 
• Product specific criteria common to the Parties: 
− Wholly obtained or entirely produced goods (mostly HS Chapters 1-24) 
− CTC at the heading level is the most common criteria, however, exceptions apply 
− MC criteria utilized in some cases as a standalone rule and more often as a 
supplementary/alternative rule;  the MC percentages vary from 20% to 50% of the ex-works price of the product 
− Technical rule applies to certain products (mostly minerals, raw hides, wood and textiles) 
• Cumulation: 
− Bilateral cumulation  
• Absorption principle 
• Tolerance rule at 10%;  different rule applies to HS Chapters 50 to 63 (textiles and clothing) 
• No duty drawback 
Source:   Protocol C to the Agreement and its Annexes. 
B. EXPORT DUTIES AND CHARGES , AND QUANTITATIVE RESTRICTIONS  
38. The Agreement provides for the elimination between the Parties, as of its entry into force, of 
customs duties on exports or charges having equi valent effect (Article  7) and of quantitative 
restrictions on exports or measures having equivalent effect (Article 8);  the Agreement also prohibits 
the introduction of any such new duties or charges,  and quantitative restrictions or measures.  These 
prohibitions only apply to trade in industrial goods, as defined in Article 2 of the Agreement, and are 
not extended to trade in agricultural goods.  
39. Notwithstanding Articles 7 and 8 the Parties may take appropriate measures, in cases where 
compliance with the provisions of these Articles r esults in re-export to third parties against which 
export restrictions are applied or acute shortages that cause, or are likely to cause, major difficulties 
for the exporting Party.  Any such measure must be taken in accordance with the procedures laid 
down in Article 22 (see paragraph 53);  be applied in  a non-discriminatory manner;  and be limited in 
its duration (Article 20). 
40. Article 15.2 provides that products exported to  the Parties may benefit from repayment of 
internal taxes but not in excess of the amount of direct or indirect taxes imposed on them. 
C. REGULATORY PROVISIONS OF THE AGREEMENT  
1. Standards 
(a) Technical barriers to trade 
41. Article 9 commits Member States to cooperate and share information about standardization, 
metrology, conformity assessment and accreditation pr ocedures in force in th eir respective countries 
and to conform them with the relevant WTO rul es. The Contracting Parties may also enter into 
negotiations with a view to concluding agreemen ts on mutual recognition of conformity assessment 
following the WTO Agreement on Technical Barriers to Trade.  Upon request by a Party, the other must provide information related to standards, tec hnical rules or similar measures in individual cases. WT/REG248/1 
Page 18  
 
  (b) Sanitary and phytosanitary measures 
42. The Parties will apply their national veterinary , sanitary and phyto-sanitary regulations on a 
non-discriminatory basis and in a way that does not resu lt in unjustifiable barriers to trade.  They are 
also required to respect relevant international c onventions to which both are Parties (Article 14). 
2. Safeguard mechanisms 
(a) General safeguards 
43. Article 19 allows the Parties to introduce appropriate measures in case of: (i) serious injury to 
domestic producers of like or the same products; or (ii) serious disruption of any related sector of the 
economy which may cause serious deterioration of th e Parties' economic situation. The procedure for 
application of the safeguards is describ ed in Article 22 (see paragraph 53). 
(b) Specific safeguards 
44. Article 13 provides that in case of serious disr uption of trade in a particularly sensitive 
agricultural product to which concessions apply under the Agreement, the affected Party may 
immediately enter into consultation in order to r esolve the problem.  Pendi ng such a decision, the 
affected Party is authorized to apply safegua rd measures necessary to protect its economy in 
conformity with national legislation.   Safeguard measures may be applied in the form of either a tariff 
increase or a quantity or value quota on imports of a product. 
3. Structural adjustment 
45. Article 17 allows the Parties to take emerge ncy measures to protect new industry sectors or 
sectors undergoing restructuring or experiencing serious difficulties.  The measures that the Parties may take are exceptional in nature, and must be of  limited duration and in the form of increased 
customs duties.  Customs duties introduced as part of such measures may not exceed 25% of the value 
of the good and must be lower than the product's applied MFN rate.  The total volume of imports of 
products subject to such measures may not exceed 15%  of total imports of industrial products from 
the other Party.  The maximum duration of a measure may not exceed five consecutive years and no measure may be introduced in respect of products wh ere more than 3 years have elapsed since their 
duty elimination under the Agreement.  Should a Party intend to adopt an emergency measure as 
provided under Article 17, it shall inform the Join t Committee about the intended measures and afford 
consultations at the request of the other Party on  the measures and sectors concerned before they are 
implemented.  Furthermore, when adopting a meas ure, the Party shall provide the Joint Committee 
with a schedule for the abolition of the customs duties introduced. 
4. Anti-dumping and countervailing measures 
46. Article 18 allow the Parties to take anti-dum ping or countervailing measures in accordance 
with Article VI of the GATT 1994;  the WTO Agre ement on Implementation of Article VI of the 
GATT 1994;  and the WTO Agreement on Subsidies and Countervailing Measures. 
5. Customs related procedures 
47. Customs procedures related to rules of origin  are detailed in Protocol C.  Articles 15-27 
(Chapter V of Protocol C) set out the administrative procedures and disciplines that apply to the proof 
of origin.  The Agreement provides for the EUR.1 proo f of origin certificate as illustrated in Annex III 
to the Protocol (Article 15).  The EUR.1 certificate must be issued by the co mpetent authorities of the 
exporting country upon written application by the expor ter.  The proof of origin is not necessary for  WT/REG248/1 
 Page 19 
 
 
  products shipped in small packages from/to private indi viduals;  and, which co nstitute part of personal 
luggage. 
48. Articles 28-32 (Chapter VI to Protocol C) set out the arrangements for administrative 
co-operation between the Parties’ customs author ities.  Title VI includes provisions on mutual 
assistance, verification of proof of origin, dispute settlement, penalties and free-zones.  Article 29 sets 
out the procedures for verification of the proof of  origin in cases where the customs bodies of the 
importing country have reasonable doubt as to the auth enticity of the proof of origin.  The verification 
is carried out by the customs authorities of the expo rting country at the request of the authorities of 
the importing country.  The latter are to be informed  of the results of the verification as soon as 
possible.  If no such response is received within te n months from the date of the verification request, 
the requesting customs authorities may refuse to gr ant the preferential treatment provided under the 
Agreement (Paragraph 6).  With respect to the se ttlement of disputes arising under Protocol C, the 
Parties endeavour to resolve their differences through direct consultations (Article 30).  Article 33 of 
Protocol C establishes a Sub-Committee on customs and origin issues. 
D. SECTOR -SPECIFIC PROVISIONS OF THE AGREEMENT  
49. Agricultural and fisheries products are subj ect to different provisions, as described 
in Paragraph 15 of Section III.A. 
IV. GENERAL PROVISIONS OF THE AGREEMENT 
1. Exceptions 
50. Articles 23 and 32 provide respectively for gene ral and security exceptions along the lines of 
Articles XX and XXI of the GATT 1994.  Article 23 (General exceptions) allows the Parties to 
impose prohibitions or restrictions on imports, e xports or goods in transit in certain specific 
circumstances provided that such measures are just ified on the basis that they do not constitute a 
means of discrimination or disguised restriction on trade.  Article 32 (Security exceptions) allows the 
Parties to take any measures necessary: a) to preven t disclosure of information that threatens national 
security; and b) for protection of essential national security interests or for implementation of 
international obligations or nationa l policies relating to trade in arms;  non-proliferation of biological, 
nuclear and chemical weapons; or measures taken in time of war. 
2. Institutional framework 
51. Articles 30-31 deal with the administration of the Agreement;  in particular, they establish a 
Joint Committee responsible for the administration of the Agreement and its proper implementation.  
The Committee may take decisions in cases provide d for in the Agreement and recommendations on 
any other matter.  It is also manda ted to serve as the forum for Partie s' consultations and to keep under 
review the possibility of further removal of obstacles to trade between the Parties.22  The Committee 
meets whenever necessary at the request of  the Parties, but at least once a year. 
52. No general review of the Agreement is foreseen; however, Article 34 provides for a clause on 
the development of trade relations through which the Parties may enter into negotiations with a view 
to extending trade relations to areas not  currently covered by the Agreement. 
                                                      
22 According to the Parties, the Joint Committee met on 30 May 2009 to review, among other issues, 
the possibility of further liberalization of agricultural goods;  this question is currently being considered by the 
Parties. WT/REG248/1 
Page 20  
 
  3. Dispute settlement 
53. The Agreement does not contain specific provisi ons for the settlement of disputes arising 
between the Parties except for Article 22.1 which re quires the Parties to seek to settle any disputes 
between themselves through the Joint Committee.  Ar ticle 22 sets out the notification and consultation 
procedures for the application of safeguard measures as specified in Articles 19, 20, 26, and 33.
23  
According to these provisions, once a Party intends to  resort to a measure it must notify the other 
Party, provide it with all relevant information and enter into consulta tions with the other Party in the 
Joint Committee with a view to finding a mutually acceptable solution.  If within one month of the 
matter being referred to the Joint Committee no so lution has been found, the concerned Party may 
adopt the measures it considers necessary to remedy th e situation.  With respect to Article 33, the 
Party concerned my take appropriate  measures after the consultations  have been concluded or after 
three months from the notification to the other Part y of the intention to apply such measures.  The 
safeguard measures taken must be notified to the Jo int Committee and shall be limited in their extent 
and duration to what is necessary to rectify the situ ation.  The measures shall be subject to regular 
consultations with a view to their relaxation or el imination when conditions no longer justify their 
maintenance.  With respect to Articles 18, 19, and 20, where exceptional circumstances requiring 
immediate action make prior examination impossibl e, the Party concerned may apply provisional 
measures necessary to remedy the situation;  such measures must be notified immediately to the other 
Party and consultations within the Joint Committe e are to be carried out as soon as possible. 
4. Relationship with other agreements concluded by the Parties 
54. The Agreement does not prevent the mainte nance or establishment of customs unions, 
free-trade areas or arrangements for trade with third countries to the ex tent that such agreements do 
not negatively affect the trade regime and in part icular the provisions concerning rules of origin 
provided for in the Agreement.  The Parties will immediately inform each other of any agreement 
establishing a customs union or a free trade area, as well as accession to the European Union (Article 16). 
55. Table IV.1 lists the regional trade agreemen ts (RTAs), notified and not notified to the 
GATT/WTO and in force, to which Ukraine and FYRO M are parties.  In addition, Ukraine has made 
early announcements concerning negotiations on a free trade agreement (involving only goods) with 
EFTA and Singapore. 
                                                     
 
23 These Articles refer respectively to:  general safe guards; re-export and acute shortage;  rules of 
competition between undertakings and state aid;  fulfilment of obligations.  WT/REG248/1 
 Page 21 
 
 
  Table IV.1 
Ukraine and FYROM:  Participation in RT As (notified and non-notified in force) 
GATT/WTO Notification 
Partner/Agreement   Date of 
entry into 
force  Type of agreement  
Year WTO Provision 
UKRAINE  
Belarus 11.11.06 2008 
Moldova 19.05.05 2008 
Common Economic Zone 20.05.04 2008 
Tajikistan 11.07.02 2008 
Kazakhstan 19.10.98 2008 
Azerbaijan 02.09.96 2008 
Uzbekistan 01.01.96 2008 
Turkmenistan 04.11.95 2008 
Russian Federation 21.02.94 2008 
Armenia 18.12.96 2004 
Georgia 04.06.96 2001 
Kyrgyz Republic 19.01.98 1999 
CIS 30.12.94 1999 GATT Art. XXIV 
GUAM In force 
10.12.03 Goods 
Not notified Not notified 
FYROM 
CEFTA 01.05.07 2007 
European Community  01.06.01 2001 
Turkey 01.09.00 2001 
EFTA 01.01.01 2000 GATT Art. XXIV 
GSTP In force 
19.04.89 Goods 
1989 Enabling clause 
CIS: Commonwealth of Independent States 
GUAM: Georgia, Ukraine,  Azerbaijan, Moldova 
CEFTA: Central European Free Trade Agreement 
EFTA: European Free Trade Association 
GSTP: Global System of Trade Pref erences among Developing Countries 
 
Source:  WTO Secretariat. 
5. Other provisions 
(a) Rules of Competition between Undertakings and State Aid 
56. Article 26 contains provisions relating to th e rules of competition concerning undertakings 
and public aid.  According to this Article, the fo llowing are incompatible with the proper functioning 
of the Agreement: a) agreements and decisions be tween undertakings which seek to, or affect, the 
prevention, restriction or distortion of competition;   b) abuse by one or more undertakings of a 
dominant position in the territories of the Parties;  and c)  state aid, which distorts, or threatens to distort, competition.
24  If such practice causes or threatens to cause serious injury to the interests of 
the other Party or material injury to its domestic industry, the Party concerned may take appropriate 
measures in accordance with the procedures set forth in Article 22 (see paragraph 53).25  In the case of 
incompatible state aid practices, appropriate measu res may only be adopted in conformity with the 
rules and procedures of the GATT 1994 and the WTO Ag reement where these apply.  The Parties are 
to ensure transparency in state aid by reporting annually to each other on the amount of aid given. 
57. With respect to state monopolies, Article 21 comm its the Parties to gradually adjust any state 
monopolies of a commercial nature so as to ensure the elimination of discrimination regarding the 
conditions under whic h goods are procured and marketed. 
                                                      
24 In the case of state aid the Joint Committee shall, within three years from the entry into force of the 
Agreement, develop criteria for determining practices falling under subparagraph c).   
25 The incompatible state aid practices referred to in subparagraph c) do not apply to agricultural and 
fisheries products as defined in  Chapter II of the Agreement. WT/REG248/1 
Page 22  
 
  (b) Intellectual Property Rights 
58. Under Article 28 of the Agreement,  the Parties agree to cooperate  in the field of intellectual 
property rights (IPR) and, if necessary, to apply m easures provided for in Annex I C to the Marrakech 
Agreement and other multilateral agreements on i ssues concerning IP protection to which they are 
both Parties
26.  Article 28.2 specifies that for the purposes of the Agreement, IP refers to all categories 
such as copyright and related rights; trademarks; ge ographical indications; integrated circuit layouts; 
industrial designs; patents;  and protected inform ation, including know-how.  Article 28 requires the 
Parties to accord to each other nationals treatment no less favourable than that accorded to national of 
any third country with respect to IPR commitments  under international agre ements and legislation.27  
Furthermore, in view of enhancing cooperation on IPR, Article 28 provides that upon request, the 
Parties will hold expert meetings and/or consultations , in particular with respect to issues relating to 
existing or future international ag reements on coordination, administra tion and protection of IPR.  In 
case of trade difficulties between the Parties due to  IPRS, the Parties will hold consultations with a 
view to find a mutually acceptable solution.  
(c) Public procurement 
59. Article 29 states that one of the objective of the Agreement is to liberalize the Parties' public 
procurement markets and to award public contracts on the basis of non-discrimination and reciprocity.  
To this end, the Parties agree to grant to each ot her's suppliers access to contract award procedures in 
their respective procurement markets on the basis of  treatment no less favourable than that accorded 
to the companies of any third country.  The Jo int Committee may offer recommendations concerning 
the implementation of the provisions set out in this Article to ensure free acc ess, transparency and full 
balance rights of and obligations;  the Joint Comm ittee may also consider the possibility of extending 
the coverage and degree of market openness in pub lic procurement provided under of this Article.  
The Parties also endeavour to accede to relevant Agreements negotiated under the auspices of the 
GATT 1994 and the Marrakech Agreement.28 
(d) Payments, transfers and capital movement 
60. The Parties undertake to allow, by mutual consent, the making of payments to current 
accounts of the balance of payments in fr eely convertible currencies (Article 25). 
61. Article 27 provides for the application of provisional measures, including measures related to 
imports, to safeguard a Party’s balance of payments .  Any such measure shall be taken in accordance 
with the conditions established under the GATT 19 94 and Article VIII of the Agreement of the 
International Monetary Fund.  The application of  any such measure must not exceed the period 
needed to remedy the balance of payments situation.  The Party ta king any such measure will inform 
immediately the other Party and provide a timetable for their removal. 
                                                      
26 Annex II lists the following multilateral agreements to which both Member States are Parties:  Paris 
Convention on protection of industrial property (20 Marc h 1883); Bern Convention on protection of literary and 
artistic creation (9 September 1886); Rome Convention on protection of performers, producers of phonograms 
and televisions and radio broadcasting organizations (26 October 1961); Madrid Agreement on international 
registration (1967, amended in 1979);  Budapest Agre ement on international recognition of preservation of 
microorganism for purpose of patenting procedures (1977, as amended on 1980);  Washington Agreement on 
patent cooperation (1970, as amended in 1979 and 1984); Convention founding the World Intellectual Property 
Organization 1967, as amended in 1979);  Madrid agreement for the repression of false or deceptive indication of source on goods (1891, as amended in 1967);  Geneva Convention on protection of phonograms from 
unauthorized reproduction (1971); Hague agreement on international protection of industrial design (1925, as 
amended in 1960 and 1967). 
27 This obligation does not apply in respect of relations between citizens of Ukraine and CSI countries. 
28 Ukraine is an observer to the Plurilateral Agreement on Government  Procurement (GPA).  WT/REG248/1 
 Page 23 
 
 
  ANNEX I 
 
 1. A comparison between the scheduled elimination of tariffs applied to the Parties' mutual 
imports and the duty rates applied by them on MFN imports is shown in Tables AI.1 (Ukraine) and 
AI.2 (FYROM), by agricultural (WTO definition), non-agricultural and total products.  Applied MFN 
duty rates in 2001 serve as a comparison. 
2. Ukraine's overall average applied MFN rate in 2001 was 7.7%;  the average applied tariff on 
agricultural products was 10% compared to an av erage applied tariff of 7.5% for non-agricultural 
products.  Duty-free tariff lines accounted for 17.3% of all tariff lines.  On entry into force of the 
Agreement, FYROM exporters enjoyed a relative ma rgin of preference of 9% for agricultural goods 
vis-à-vis  the prevailing average MFN tariff in 2001, compar ed to a relative margin of preference of 
81.3% for non-agricultural goods;  overall, FYROM e xporters enjoyed a relative margin of preference 
of 74% vis-à-vis the prevailing average applied MFN tariff.  By the end of the implementation period, 
the share of Ukraine's duty-free lines for FYROM imports  is expected to increase to 85.8% of the total 
tariff, of which 18.8% for agricultural lines and 97.1% for non-agricultural lines.
1 
Table AI.1 - Ukraine: Indicators of MFN tariff rates and preferential rates for imports from FYROM 
ALL PRODUCTS Agricultural products a Non-agricultural products 
Average applied 
tariff Average applied 
tariff Average applied 
tariff Origin of 
goods Year 
Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff lines 
(%) Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff lines 
(%) Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff lines 
(%) 
MFN 2001 7.7 9.5 17.3 10.0 13.0 10.2 7.5 9.3 18.5 
FYROM 2001 2.0 10.7 74.1 9.1 15.7 18.8 1.4 9.2 83.4 
 2002 1.6 8.8 74.1 9.1 15.7 18.8 1.0 9.2 83.4 
 2003 1.3 6.8 74.1 9.1 15.7 18.8 0.6 9.2 83.4 
 2004 0.9 16.1 85.7 9.1 15.7 18.8 0.3 18.2 97.0 
 2005 0.9 16.2 85.8 9.1 15.7 18.8 0.3 18.0 97.1 
a WTO Definition. 
 
Note:  For tariff lines subject to TRQs only the out-of-quota duty  is included in the tariff-related calculations;  lines with specific duties 
and the non ad valorem  component of lines with compound and altern ate rates are excluded from the calculations. 
Source : WTO Secretariat estimates based on data provided by Ukraine. 
 
3. FYROM's overall applied MFN average in 2001 was 14.6%.  The average rate for agricultural 
products (25.8%) was more than double the averag e rate for non-agricultural products (11.7%).  
Duty-free tariff lines accounted for 3% of all tariff lin es.  On entry into force of the Agreement, 
Ukrainian exporters enjoyed a relative margin of  preference of 0.4% for agricultural products vis-à-vis  
the prevailing MFN tariff in 2001 compared to a relative margin of preference of 50.4% for 
non-agricultural products;  overall Uk rainian exporters enjoyed a rela tive margin of preference of 
32.2% vis-à-vis  the prevailing MFN rate in 2001.  By th e end of the implementation period, 77% of 
FYROM's tariff is expected to be duty free for impor ts from Ukraine, of which 4.9% for agricultural 
products and 95.5% for non -agricultural products.2 
 
 
 
 
                                                      
1 Table AI.1 utilizes the WTO definition of agricultural products thus generating a margin of 
preference with respect to agricultura l products although the Agreement does no t contain any tariff liberalization 
commitments with respect to HS Chapters 1 to 24 except certain concessions within TRQs (see paragraph 15). 
2 Footnote no. 29 also applies to Table AI.2. WT/REG248/1 
Page 24  
 
  Table AI.2 - Former Yugoslav Republic of Ma cedonia: Indicators of MFN tariff rates and preferential rates for imports from 
Ukraine 
ALL PRODUCTS Agricultural products a Non-agricultural products 
Average applied 
tariff Average applied 
tariff Average applied 
tariff Origin of 
goods Year 
Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff lines 
(%) Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff lines 
(%) Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff lines 
(%) 
MFN 2001 14.6 15.0 3.0 25.8 26.0 0.4 11.7 12.1 3.7 
Ukraine 2001 9.9 21.8 54.8 25.7 27.0 4.9 5.8 18.0 67.9 
 2002 9.4 20.8 54.8 25.7 27.0 4.9 5.2 16.2 67.9 
 2003 8.8 19.5 54.8 25.7 27.0 4.9 4.4 13.8 67.9 
 2004 8.3 18.5 54.8 25.7 27.0 4.9 3.9 12.0 67.9 
 2005 7.9 17.4 54.8 25.7 27.0 4.9 3.3 10.2 67.9 
 2006 7.3 16.1 54.8 25.7 27.0 4.9 2.5 7.9 67.9 
 2007 6.7 18.2 63.2 25.7 27.0 4.9 1.8 8.3 78.5 
 2008 6.4 17.3 63.2 25.7 27.0 4.9 1.4 6.5 78.5 
 2009 6.0 16.4 63.2 25.7 27.0 4.9 1.0 4.6 78.5 
 2010 5.7 24.8 77.0 25.7 27.0 4.9 0.6 13.0 95.5 
a WTO Definition. Note:  For tariff lines subject to TRQs only the out-of-quota duty is included in the tariff-related calculations;  for tariff lines with 
non ad valorem  component only the ad valorem  part of alternate rates are included in the calculation.   
Source : WTO Secretariat estimates based on data  provided by FYROM to the WTO-IDB. 
 
4. Table AI.3 shows the market access opportunities in Ukraine for FYROM's top 25 exports, 
which in 1998-2000 accounted on average for 40.5% of  FYROM's global exports.  The table shows in 
which year all HS 10-digit tariff lines corresponding to the product definition (i.e. applying to the 
6-digit HS code used to capture the volume of trade) will become duty-free in Ukraine. 
5. FYROM's top 25 exports cover a total of 61 HS 10-digit tariff lines of which 2 were already 
duty-free on an MFN basis at entry into force of the Agreement;  this corresponded to two of 
FYROM's top 25 exports (which account for 2 HS 10-digit lines and 4.7% of FYROM's average 
global exports in the period 1998-2 000) already benefiting from zero MFN duties in Ukraine's market.  
Eight further products gained duty-free access in 2001 as a result of the tariff liberalization commitments undertaken by Ukraine under the Agreement; combined these accounted for 
30 HS 10-digit tariff line and 10.8% of FYROM's average global exports.  A further 12 products 
gained duty-free access in 2004 corresponding to 26 HS 10-digit tariff line and 14.1% of FYROM's average global exports.  By the end of the implem entation period scheduled under the Agreement, of 
the 59 dutiable HS 10-digit tariff lines, 55 are sche duled to become duty-free while 4 will remain 
subject to duties.  The margin of preference granted to FYROM by Ukraine under the Agreement 
varies from 2 to 25 percentage points. 
Table AI.3 – Ukraine: Market access opportunities  under the agreement for FYROM's top 25 exports 
Access Conditions to Ukraine's import markets  
MFN (2001)  FYROM's top export products in 1998-2000  Number of 
tariff lines  Duty-free in 
HS number and description of the product  Share in 
global 
exports 
(%) Average 
MFN 
applied 
rate 
(%) 
Duty-free 
Dutiable 
2001 
2004 
Remain Dutiable 
620520 Of cotton 4.9 12.3  1  1  
240100 Tobacco 4.2 --  1   1 
790100 Unwrought zinc 3.9 0.0 1     
720800 Flat-rolled products of iron or non-alloy steel, of a 
width of 600 mm or more, hot rolled, not clad, plated or coated  2.7 5.0  1 1   
240220 Cigarettes containing tobacco 2.7 --  1   1 
220429 Other 2.3 --  1   1 
Table AI.3 (Cont'd)   WT/REG248/1 
 Page 25 
 
 
  Access Conditions to Ukraine's import markets  
MFN (2001)  FYROM's top export products in 1998-2000  Number of 
tariff lines  Duty-free in 
HS number and description of the product  Share in 
global 
exports 
(%) Average 
MFN 
applied 
rate 
(%) 
Duty-free 
Dutiable 
2001 
2004 
Remain Dutiable 
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 constituent of the preparations 2.2 --  19 19   
620640 Of man-made fibres 2.2 12.6  1  1  
854459 Other 2.0 20.0  1 1   
640510 With uppers of leather or co mposition leather 1.3 25.0  1 1   
300490 Other 1.3 12.4  5 5   
220200 Waters, including mineral waters and aerated waters, 
containing added sugar or other sweetening matter or 
flavoured, and other non-al coholic beverages, not 
including fruit or vegetable juices of heading 20.09 1.2 --  1   1 
620311 Of wool or fine animal hair 1.0 12.6  1  1  
620342 Of cotton 0.9 12.6  7  7  
780100 Unwrought lead 0.8 0.0 1     
610910 - Of cotton 0.8 12.3  1  1  
620433 Of synthetic fibres 0.8 12.6  2  2  
620690 Of other textile materials 0.8 12.6  2  2  
620630 Of cotton 0.7 12.6  1  1  
620463 Of synthetic fibres 0.7 12.6  5  5  
620530 Of man-made fibres 0.7 12.3  1  1  
260300 Copper ores and concentrates. 0.7 2.0  1 1   
620331 Of wool or fine animal hair 0.6 12.6  1  1  
620333 Of synthetic fibres 0.6 12.6  2  2  
640399 Other 0.6 25.0  2 2   
Total of above 40.5  2 59 30 25 4 
-- Specific duty. 
Source : WTO estimates based on data provided by Ukraine and UNSD,  Comtrade data. 
 
6. Table AI.4 shows the market access opportuniti es in FYROM for Ukraine's top 25 exports, 
which in 1998-2000 accounted on average for 40.6% of  Ukraine's global exports.  The table shows in 
which year all HS 10-digit tariff lines corresponding to the product definition (i.e. applying to the 
6-digit HS code used to capture the volume of trade) will become duty-free in FYROM. 
7. Ukraine's top 25 exports cover a total of 108 HS 10-digit tariff lines of which 1 was already 
duty-free on an MFN basis at entry into force of  the Agreement;  this corresponded to one of 
Ukraine's top 25 exports (which account for 1 HS 10- digit line and 0.8% of Ukraine's average global 
exports in the period 1998-2000) already benef iting from zero MFN duties in FYROM's market.  In 
2001, 16 products gained duty-free access as a r esult of the tariff liberalization commitments 
undertaken by FYROM under the Agreement; combined  these accounted for 53 HS 10-digit tariff line 
and 29.9% of Ukraine's average global exports.  A further 5 products will gain duty-free access in 
2010 corresponding to 47 HS 10-digit tariff line and 6.3% of Ukraine's average global exports.  By the end of the implementation period scheduled under the Agreement, of the 107 dutiable HS 10-digit 
tariff lines, 100 will become duty-free while 7 will rema in subject to duties.  The margin of preference 
granted to Ukraine by FYROM under the Agreemen t varies from 1 to 17.6 percentage points. 
 
   
 WT/REG248/1 
Page 26  
 
  Table AI.4 – Former Yugoslav Republic of Macedonia 
Market access opportunities under the agree ment  for Ukraine's top 25 exports 
Access Conditions to FYROM's import markets  
MFN (2001)  Ukraine's top export products in 1998-2000  Number of 
tariff lines  Duty-free in 
HS number and description of the product  Share in 
global 
exports 
(%) Average 
MFN 
applied 
rate 
(%) 
Duty-free 
Dutiable 
2001 
2010 
Remain Dutiable 
720711 Of rectangular (including square) cross-section, the 
width measuring less than twice the thickness 3.1 2.0  4 4   
720712 Other, of rectangular (other than square) cross-section 2.7 2.0  2 2   
720720 Containing by weight 0.25 % or  more of carbon 2.6 2.0  13 13   
721420 Containing indentati ons, ribs, grooves or other 
deformations produced during the rolling process or 
twisted after rolling 2.2 3.0  1 1   
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 
constituent of the preparations 2.1 17.6  37  37  
760120 Aluminium alloys 2.0 1.0  3 3   
721391 Of circular cross-section measuring less than 14 mm 
in diameter 1.9 3.0  6 6   
722820 Bars and rods, of silico-ma nganese steel 1.8 3.0  4 4   
281820 Aluminium oxide, other than artificial corundum 1.8 1.0  1 1   
854810 Waste and scrap of prim ary cells, primary batteries 
and electric accumulators; spent primary cells, spent primary batteries and spent electric accumulators 1.7 13.0  5 5   
310210 Urea, whether or not in aqueous solution 1.7 1.0  2 2   
260111 Non-agglomerated 1.7 2.0  1 1   
720110 Non-alloy pig iron containi ng by weight 0.5 % or less 
of phosphorus 1.6 2.0  4 4   
100190 Other 1.5 10.0  3   3 
281410 Anhydrous ammonia 1.4 2.0  1 1   
720840 Not in coils, not further worked than hot-rolled, with 
patterns in relief 1.4 3.0  2  2  
720230 Ferro-silico-manganese 1.3 2.0  1 1   
720449 Other 1.2 2.0  4 4   
260112 Agglomerated 1.2 2.0  1 1   
120600 Sunflower seeds, whether or not broken 1.1 17.3  3   3 
720810 In coils, not further worked than hot-rolled, with 
patterns in relief 1.1 3.0  1  1  
020210 Carcasses and half-carcasses 1.0 18.0  1   1 
720851 Of a thickness exceeding 10 mm 0.9 3.0  5  5  
720927 Of a thickness of 0.5 mm or more but not exceeding 1 
mm 0.8 5.0  2  2  
271600 Electrical energy. (optional heading) 0.8 0.0 1     
Total of above 40.6  1 107 53 47 7 
 
Note:  For tariff lines subject to TRQs only the out-of-quota duty is included in the tariff-related calculations;  for tariff lines with 
non ad valorem  component only the ad valorem  part of alternate rates are included in the calculation.   
Source : WTO estimates based on data provided by FYROM to the WTO-IDB and UNSD, Comtrade database. 
  WT/REG248/1 
 Page 27 
 
 
  ANNEX II 
 
Agricultural concessions under th e Ukraine - FYROM Agreement  
 
Table AII.1 
Ukraine's agricultural concessions on  imports originating from FYROM 
TRQs 
(2002-2008) 
Code Product Description Quota 
(tonne - litres 
for liquids) In-quota 
duty % Average 
MFN 2008 
0204 Meat of sheep or goats, fresh, chilled or frozen 500 a 
0709.60 Fruits of the genus Capsicum or of the genus Pimenta 5,000 18.8% 
0712 Dried vegetables, whole, cut, sliced, broken or in powder, but not further 
prepared  
500  
b 
0813 Fruit, dried, other than that of headings  08.01 to 08.06; mixtures of dried 
fruits or nuts of this Chapter 200 7.9% 
0904 Pepper of the genus Piper; dried or crushed or ground fruits of the genus 
Capsicum or of the genus Pimenta 0.0% 
1211.90 Plants and parts of plants (includi ng seeds and fruits), of a kind used 
primarily in perfumery, in pharmacy or for insecticidal, fungicidal or similar 
purposes, fresh or dried, whether or not cut, crushed or powdered 0.0% 
1704 Sugar confectionery (including white  chocolate), not containing cocoa 1 Euro for 
1 kg 
1806 Chocolate and other food prepar ations containing cocoa 15.0% 
1904 Prepared foods obtained by the swe lling or roasting of cereals or cereal 
products ; cereals in grain form or in the form of flakes or other worked grains, pre-cooked, or otherwise 500 
 
14.0% 
1905.30 Sweet biscuits; waffl es and wafers 100 10.0% 
2001 Vegetables, fruit, nuts and other edible parts of plants, prepared or preserved 
by vinegar or acetic acid 6,000 19.8% 
2002 Tomatoes prepared or preserved otherwise than by vinegar or acetic acid 4,000 18.8% 
2005 Other vegetables prepared or preserved otherwise than by vinegar or acetic 
acid, not frozen, other than products of heading 2006 3,000 16.7% 
2007 Jams, fruit jellies, marmalades, fruit or nut purée and fruit or nut pastes, 
being cooked preparations, whether or not containing added sugar or other 
sweetening matter 100 16.6% 
2008 Fruit, nuts and other edible parts of pl ants, otherwise prepared or preserved, 
whether or not containing added sugar or other sweetening matter or spirit, 
not elsewhere specified or included 500 15.0% 
2009 Fruit juices or vegetable juices, unfer mented and not containing added spirit, 
whether or not containing added sugar or other sweetening matter 3,000,000 6.6% 
2103 Sauces and preparations thereof; mixed condiments and mixed seasonings; 
mustard flour and meal and prepared mustard 3,000 12.9% 
2204 Wine of fresh grapes, including fortified wines; grape must other than that of 
heading 2009 40,000,000 -- 
2208.20 Spirits obtained by distilling grape wine or grape marc 100,000 7,5 Euro for 
1 litre of 
100 % spirit
2208.90 Undenatured ethyl alcohol of an alco holic strength by volume of less than 
80% vol; spirits, liqueurs and other spirituous beverages 100,000 7,5 Euro for 
1 litre of 
100 % spirit
2209.00 Vinegar and substitutes for vinegar obtained from acetic acid 100,000 10.0% 
2401.10 Tobacco, not stemmed/stripped 10,000 0% 
1 Euro for 
100 kg 
-- Combination of various specific duties. 
a Combination of specific and mixed duties. b  Combination of ad valorem  and specific duties. 
Source: Data provided by Ukraine and WTO-IDB.  
 
 WT/REG248/1 
Page 28  
 
  Table AII.2  
Former Yugoslav Republic of Macedonia:  agricultural concessions on imports originating from Ukraine 
TRQs 
(2002-2008) 
Code Product Description Quota 
(tonne - litres 
for liquids) In-quota 
duty % Average 
MFN 2008 
0201 Meat of bovine animals, fresh or chilled 1,000 15.0% a 
0202 Meat of bovine animals, frozen 1,000 11.8 a 
0203.21 - - Carcases and half-carcases 300 -- 
0203.22 - - Hams, shoulders and cuts thereof, with bone in 300 0,40 eur/kg 
max. 25 
0203.29 - - Other 300 -- 
0402 Milk and cream, concentrated or cont aining added sugar or other sweetening 
matter: 400 14.8% 
1003.00 Barley: 5,000 7.0% 
1005.90 - Other 20,000 0.0% 
1512110000 - - - For technical or industrial uses other than the manufacture of foodstuffs 
for human consumption 10,000,000 0.0% 
1701.12 - - Beet sugar 15,000 2% 
1704 Sugar confectionery (incl uding white chocolate), not containing cocoa: 100 12.8% a 
1806 Chocolate and other food prepara tions containing cocoa: 100 20.7% a 
1905.30 - Sweet biscuits; waffles and wafers: 50 29% + 0.02 
eur/kg 
max. 30 
2007 Jams, fruit jellies, marmalades, fruit or nut purée and fruit or nut pastes, 
being cooked preparations, whether or not containing adde d sugar or other 
sweetening matter 100 15.7% 
2201 Waters, including natural or artificial mi neral waters and aerated waters, not 
containing added sugar or other swee tening matter nor flavoured;  ice and 
snow 100,000 35.0% 
2209 Fruit juices or vegetable juices, unfer mented and not containing added spirit, 
whether or not containing added sugar or other sweetening matter 100,000 0% 
0.0% 
 
-- Combination of various specific duties. 
a Combination of ad valorem  and compound duties (only the ad valorem  component are considered in the calculation). 
Source: Data provided by Former Yugoslav Republic of Macedonia and WTO-IDB. 
__________