WORLD TRADE  
ORGANIZATION  WT/REG171/3  
1 July 2009 
 (09-3210) 
Committee on Regional Trade Agreements  
  
 
  
 
 
FACTUAL PRESENTATION 
 
Free Trade Agreement  
between  
Armenia and Ukraine 
(Goods) 
 
Report by the Secretariat 
 
 
 
 
This report, prepared for the considera tion of the Free Trade Agreement between 
Armenia and Ukraine 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 pro cedures contained in the Decision for a 
Transparency Mechanism for Regiona l 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/REG171/3 
Page iii 
 
 
TABLE OF CONTENTS 
 
 
  Page 
 
I. TRADE ENVIRONMENT 1  
II. CHARACTERISTIC ELEMENTS OF THE AGREEMENT 6  
A. BACKGROUND INFORMATION  6  
B. NATIONAL TREATMENT AND MARKET ACCESS PROVISIONS OF THE AGREEMENT  6  
1. General provisions 6  
2. Import duties and charges 7  
(a) Liberalization by Armenia 7  
(b) Liberalization by Ukraine 8  
3. Rules of origin 10  
4. Export duties and charges and quantitative restrictions 11  
C. REGULATORY PROVISIONS OF THE AGREEMENT  12  
1. Customs-related procedures 12  
2. Standards and technical regulations 12  
3. Safeguard mechanisms 12  
4. Anti-dumping and countervailing measures 13  
5. Subsidies, State-aid and competition 13  
6. Intellectual property protection 14  
D. GENERAL PROVISIONS OF THE AGREEMENT  14  
1. Exchange of information 14  
2. Exceptions 14  
3. Accession and withdrawal 14  
4. Institutional framework 14  
5. Dispute settlement 14  
6. Relationship with other agreements concluded by the Parties 14   
 
ANNEX I  16  
 
ANNEX II  18  
 
ANNEX III  20  
 
 
 WT/REG171/3 
Page 1 
 
 
ARMENIA-UKRAINE FREE TRADE AGREEMENT (GOODS) 
 
Factual Presentation by the Secretariat  
  I. TRADE ENVIRONMENT 
1. Armenia and Ukraine began their transition to a market-based economy after becoming 
independent from the Soviet Union, in 1991.  Afte r a very strong contraction during 1991-93, when 
income per capita was halved in purchasing power terms, average annual real growth in Armenia 
resumed in the 3-7% range during 1994-1999 (Chart I.1).  In Ukrain e, the contraction was initially 
less severe, but lasted considerably longer, taking it  16 years to reach real per capita income levels 
recorded in 1990. 
01, 0002, 0003, 0004, 0005, 0006, 0007, 0008, 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
Armenia
Ukraine
Source : World Bank Development Indicators viewed at  http://ddp- ext.worldbank.org/ext/DDPQQ/report.do?method=showReport.
 
 
2. Armenia then experienced high growth over th e 2000-07 period, with real GDP advancing on 
average at 13% annually.1  Annual inflation has averaged 3% during that period, and poverty 
indicators have fallen. Armenia's economic performan ce has been remarkable despite its land-locked 
geographical location, and the closure of two criti cal borders (Azerbaijan and Turkey, see Map 1).  In 
2007, Armenia had a total population estimated at 3 million, and a GDP estimated at US$9.2 billion, 
resulting in an average GDP per capita of US$3,060 at current prices, over three times its level in 
2000.   
                                                      
1 WTO (2008), Country Profiles, av ailable at http://stat.wto.org. WT/REG171/3 
Page 2  
 
Map 1:  Eastern Europe and Southern Caucasus
 
 
 
 
 
3. Armenia's export growth was also strong during 2000-07, at 15% in volume terms.  Its export 
structure, however, remains relatively undiversifie d, relying to a large extent on two industries 
(precious stones, notably diamonds processing, and base metals, particularly copper and ferro-molybdenum), which makes export earnings vulne rable to world commodity price fluctuations.  
Notwithstanding export growth and substantial remittance inflows, imports have outstripped exports 
in value terms (Chart I.2), resulting in a sizeable widening of the merchandise trade deficit during the 2004-07 period.  In 2007, the value of Armenia's total imports amounted to US$3.3 billion, approximately three time total exports of US$1.2 billion. 
 
 
 WT/REG171/3 
Page 3 
 
 
0.00.51.01.52.02.53.03.54.0
1997 1999 2000 2001 2002 2003 2004 2005 2006 20070.000.050.100.150.200.250.300.350.40US$billion US$billionChart I.2 - Armenia: Merchandise imports from and exports to 
world and Ukraine, 1997-2007
Source : UNSD, Comtra de database.Imports from Ukraine
Exp ort s to Uk r aineTotal imports
Total exportsLeft hand sale: Right hand sale:
Note: data not available in 1998 and preceding 1997.
 
4. Armenia's bilateral trade with Ukraine rema ins small, although imports from Ukraine have 
grown rapidly, particularly since 2004-05 (Chart I.2) .  Armenia's exports to Ukraine have grown more 
slowly, thereby widening its trade deficit with Ukraine.   In large part this small trade can be explained 
by geographical and geopolitical constraints:  Armeni a is landlocked, and the main transit route with 
Ukraine is by land through Georgia and by sea on the Black sea.  In recent years, political unrest in 
the region has limited Armenia's access to the Black Sea (see Map 1). 
5. 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 of sharp 
economic slowdown (+2.7% in 2005) .  Exports and imports of goods  both expanded dynamically in 
value terms:  The value of Ukraine's total merchandise exports and imports amounted to 
US$49.2 billion and US$60.7 billion respectively in 2007 (Chart I.3).  Export growth was also subject 
to strong fluctuations reflecting developments in  world markets for steel, 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.2   
                                                      
2 World Bank Gross national income per capita, Atlas method, viewed at: 
http://ddp-ext.worldbank.o rg/ext/DDPQQ/showRepor t.do?method=sh owReport. WT/REG171/3 
Page 4  
 
010203040506070
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 20070.000.050.100.150.200.250.30US$billion US$billionChart I.3 - Ukraine: Merchandise imports from and exports to world 
and Armenia, 1996-2007
Source : UNSD, Comtrade database.Imports from Armenia
Exports to ArmeniaTotal imports
Total exportsLeft hand sale: Right hand sale:
Note:  data not available for the period preceding 1996.
 
 
6. In 2007, Armenia and Ukraine ranked 140th and 49th respectively in terms of global 
merchandise exports and 125th and 42nd among the world's importers of goods respectively.  The 
two countries showed quite different average trad e/GDP ratios in 2005-2007, with Armenia's ratio 
being 63 and Ukraine's 97.  In both countries this ra tio has been on a declining trend, suggesting that 
trade has not been a strong contributing factor to the expansion of the two economies.   
7. The main commodities exported from Ukraine are b ase metals (Chart I.4), dominated by steel 
products.  Exports of mineral produc ts, (10.5% of total exports) incl ude refined petroleum products.  
Exports of agriculture products amounted to approx imately 11% of total exports in 2005-07;  they 
consist mainly of vegetables (wheat, barley, and sunf lower seed, prepared foods, and fats and oils).  
Table AI.1 contains a list of Ukraine's main expor ts in 1996-97 and in 2006-07;  it shows that exports 
of agri-food products have declined in importance relative to steel products over the decade.  In 
comparison, prepared foods remain an important Ar menian import from Ukraine, which together with 
base metals and minerals, accounted for 70.4% of its imports during 2005-07.   The European Union 
(31.5% of Ukraine's exports) and the Russian Federa tion (22.5%) together account for more than half 
of Ukrainian exports. Other important trading pa rtners are Turkey, Belarus and the United States.3 
 
                                                      
3 WTO (2008), Country Profiles, av ailable at http://stat.wto.org. WT/REG171/3 
Page 5 
 
 
Chart I.4
Ukraine and Armenia: product compos ition of merchandise trade, annual 
average 2005-07
Ukraine's imports from Armenia A rmenia's imports from Ukraine
Source:  UNSD, Comtrade database.                Per cent
Total:  US$23.4 million Total:  US$161 million
Total:  US$47,248 million Total: US$2,313 million
Total:  US$40,630 million Total:  US$1,021 millionUkraine's global exports Armenia's global exportsUkraine's global imports Armenia's global imports Animals 4.0
Machinery 13.7Plastics 5.6
Base metals 
32.2
Vehicles 5.8Plastics 2.9
Precious stones 13.8
Base metals
42.0Other 
10.6Other 
5.5
Chemicals 8.6Plastics 3.8
Minerals 17.0
Vehicles 11.7
Fats and oils 2.7
Minerals 10.5Machinery 2.8Other
9.2Other
4.1
Other 14.2Prepared foods  23.2
Minerals 29.8
Machinery 17.5 Chemicals  
8.7Prepared foods 3.7Textiles 3.0
Precious stones 28.2Pulp of wood 2.6Other 10.0
Vehicles  6.0
Prepared foods  8.1
Textiles 3.5Prepared foods 
44.3
Mineral products 
12.7Base metals 32.7Vehicles 5.0
Base metals 17.4
Base metals 8.6Plastics 3.7
Vegetables 5.5
Vegetables 4.4Base metals 31.0
Textiles 2.4
Prepared foods  
11.0Minerals 16.2Vegetables 5.0Chemicals 1.4
Animals 1.9Machinery 1.7
Fats and oils 4.1Machinery 3.9Chemicals 3.2Pulp of wood  2.4
Chemicals 7.0
Machinery 9.1Prepared foods 3.9Textiles 2.3Plastics 2.2
 
 
 WT/REG171/3 
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8. The main products exported by Armenia were base metals, precious stones, and mineral 
products (Chart I.4), which accounted for three-quarter s of total exports;  in addition prepared foods 
accounted for 11% of its exports.  Two of these t op four exports, prepared foods and base metals 
accounted for 77% of Ukraine's imports from Arme nia.  Exports of agriculture-based products  
(14.5% of the total) consist essentially of spirits (i.e. Yerevan Brandy).  Armenia's top exports in 
1996-97 and 2006-07 are listed in Annex Table AI.1;  Annex Tables AIII.3 and AIII.4 describe the 
Parties main exports to each other, and the corr esponding average MFN duties.  Armenia's principal 
trading partners were the European Union, whic h received 46.9% of Armenia's exports, the Russian 
Federation (11.6%), Israel (10.6%), Switzer land (7.2%) and the United States (6.4%).  
II. CHARACTERISTIC ELEMENTS OF THE AGREEMENT 
A. B
ACKGROUND INFORMATION  
9. After independence from the Soviet Union in 1991 both Armenia 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 April 1994, and of its related "Protocol on Amendments 
and Supplements", dated 2 April 1999.
4  One of the objectives of the CIS FTA was "a gradual 
cancellation of customs duties, and of taxes and levies which have equiva lent effect;  and of 
quantitative restrictions in mutual trade".5  Accordingly, all customs du ties and similar measures were 
to be abolished except for those speci fically included in lists of excep tions. Such lists were to form an 
integral part of the CIS FTA;  they would also  contain a "stage-by-stage cancellation of such 
exceptions for a transitional period before the crea tion of a free-trade area".  In case these lists would 
fail to materialize, thus precluding the effective implementation of the CIS FTA, Article 3.3 foresaw 
that bilateral free-trade agreements would be concluded among the CIS Members.  The Free Trade 
Agreement between Armenia and Ukraine cons titutes one of these bilateral agreements.  
10. The Free Trade Agreement between Armenia a nd Ukraine ("the Agreement") was signed in 
Kiev in Ukraine on 7 October 1994 and entered into  force on 18 December 1996.  Armenia became a 
Member of the WTO in February 2003, and Ukra ine in May 2008.  Upon becoming WTO Members, 
their Most-Favoured-Nation (MFN) tariffs replaced th eir "basic" tariffs, which applied to all trading 
partners except, for those products concerned, to free trade agreements partners.  The Agreement was 
notified to the WTO by Armenia on 17 June  2004 under Article XXIV.7 of GATT 1994.6  The text of 
the Agreement, composed of 13 Articles, is available as document WT/REG171/1.  The terms of reference for its examination were adopted by  the Council for Trade in Goods on 1 October 2004 
(WT/REG171/2).  
B. N
ATIONAL TREATMENT AND MARKET ACCESS PROVISIONS OF THE AGREEMENT  
1. General provisions 
11. Under the Agreement, the Parties agreed not to  apply customs duties, taxes and charges which 
have an equivalent effect, with respect to import and export of goods originating within their customs 
territories.  They may adopt exceptions to this trad e regime only if necessary, and if formally agreed 
to in a separate document (Article 1). Accordi ng to the Parties, no such document has been 
established.  Thus all trade in all pro ducts between the Parties is duty-free. 
                                                      
4 These agreements were notified to the WTO on 1 October 1999 (WT/REG82/N/1).  CIS membership:  
Azerbaijan, Armenia, Belarus, Kazakhstan, Kyrgyz Re public, Moldova, the Russian Federation, Tajikistan, 
Turkmenistan, Uzbekistan, Ukraine and Georgia. The CIS FTA entered into force on 30 December 1994, following ratification by three of its Parties. 
5 Article 1. 
6 WTO document WT/REG171/N/1, 17 June 2004. WT/REG171/3 
Page 7 
 
 
12. Under Article 2, the Parties accord national treatment and MFN treatment to originating 
commodities covered by the Agreement, with regard to (a) internal taxes or charges; (b) rules on 
warehousing, reloading, storage and transportation;   and (c) payments and payments transfers. 
13. The Parties commit not to introduce discrimin atory measures, quantitative restrictions or 
similar measures in their mutual trade;  any such restrictions must be "exceptional" (Article 3;  
however, see below (C.3. Safeguard mechanisms a nd Table II.8).  In case that a Party applies a 
quantitative restriction, it must inform the other Part y in advance about the reasons for introducing the 
discriminatory measure, its form and duration.   
2. Import duties and charges 
(a) Liberalization by Armenia 
14. Armenia's basic applied tariff in 1996 (the year  of entry into force of the Agreement), as 
provided by the authorities, contained 5,842 tariff lines, all of which were ad valorem .  The overall 
average was 2.2%, and 73% of tariff lines were duty -free.  In 2008, the most recent year for which 
applied MFN tariffs have been provided to the WT O's Integrated Database, they ranged between 0 
and 10%, averaging 2.7% after some increases, mainly on agricultural products (Table II.1). 
Table II.1  
Structure of Armenia's a pplied tariff, 1996 and 2008 
(Per cent) 
  1996 2008 
Simple average applied rate (of ad valorem  rates) 2.2 2.7 
WTO agricultural products 3.0 6.7 
WTO non-agricultural products 2.1 2.2 
Tariff range 0-10 0-10 
Tariff quotas (% of all tariff lines) n.a. n.a. 
Duty-free tariff lines (% of all tariff lines) 78.1 73.0 
Non- ad valorem  tariffs (% of all tariff lines) 0.0 0.3 
Total number of tariff lines 5,842 5,909 
n.a. Not applicable. 
Source:  WTO Secretariat calculations , based on data provided by the Armenian authorities. 
15. Armenia's duty-free treatment conferred on imports from Ukraine under the Agreement 
compares with its average basic tariff of 2.2%, with  over 78% of tariff lines already duty-free for all 
trading partners in 1996 (Table II.2).  All other tariff lines became duty-free for imports from Ukraine 
in December 1996.  In terms of import value, US $1.4 million worth of imports from Ukraine (14.3% 
of imports from Ukraine) was covered by MFN dutia ble rates that became duty-free as a result of the 
Agreement.  In 2006, the value of imports from Ukraine corresponding to otherwise dutiable products 
(i.e. where Ukrainian suppliers enjoyed a tariff pr eference) had increased to US$ 160.6 million, or 
77.2% of total imports from Ukraine.  Further information on Armenia's tariff liberalization vis-à-vis  
Ukraine is provided in Annex III. 
Table II.2 
Armenia:  Tariff elimination commitments under the Agreement and corresponding average trade values   
Value of Armenia's imports from Ukraine 
corresponding to dutiable rates, 2006-07 Duty regime Average 
applied 
rate (%) % of lines 
duty-free in million US$ % of Armenia's total 
imports from Ukraine 
MFN 1996 2.2 78.1 1.4a 14.3 
Agreement 1996 0.0 100.0 0.0 0.0 
MFN 2008 (not applied to Ukraine 
under the Agreement) 2.7 31.0 160.6 a 77.2 
a Imports of products corresponding to tariff lines that car ry MFN dutiable rates (not levied under the Agreement).  
Source:  WTO Secretariat based on data provided by the Arme nian authorities, WTO-IDB and UNSD, Comtrade data. 
 WT/REG171/3 
Page 8  
 
16. Ukrainian suppliers to Armenian markets enjoye d the largest tariff preference as a result of 
the Agreement in the following sectors:  footwear and headgear;  miscellaneous articles, articles of 
stone and prepared food (Table II.3).  This tari ff preference has increased between 1996 and 2008 in 
the agri-food sector (HS Sections I-IV): the 2008 MF N tariff was higher than the 1996 tariff rates for 
most agri-food products.   
Table II.3 
Armenia:  Tariff elimination under the Agreement, by HS section 
(Per cent) 
HS section and description  Average  
basic rates 
1996  Average under 
Agreement 
from December 1996 Average MFN rates 2008 
I Live animals and animal products 3.5 0 8.7 
II Vegetable products 1.6 0 7.0 
III Animal or vegetable fats and oils 0.0 0 9.8 
IV Prepared food etc. 4.8 0 7.5 
V Minerals 0.0 0 1.1 
VI Chemical and products 1.5 0 0.0 
VII Plastics and rubber 0.4 0 1.3 
VIII Hides and skins 3.2 0 3.2 
IX Wood and articles 2.4 0 0.6 
X Pulp, paper etc. 0.0 0 0.8 
XI Textile and textile articles 4.5 0 3.8 
XII Footwear, headgear 9.3 0 9.3 
XIII Articles of stone 6.3 0 6.9 
XIV Precious stones, etc. 2.5 0 3.0 
XV Base metals and products 0.3 0 0.2 
XVI Machinery 1.1 0 1.7 
XVII Transport equipment 4.6 0 2.6 
XVIII Precision equipment 0.9 0 1.6 
XIX Arms and ammunition 0.0 0 0.0 
XX Misc. manufactured articles 7.2 0 7.9 
XXI Works of art, etc. 10.0 0 10.0 
Total 2.2 0 2.7 
Source:   WTO estimates based on data provi ded by Armenia and the WTO-IDB. 
 
17. Some 29 tariff lines of Armenia's applied 2008 tari ff carried specific rates of duty covering 
tobacco and alcoholic beverages (Annex Table AII.1).    
(b) Liberalization by Ukraine  
18. Ukraine's MFN applied tariffs averaged 5.33%  in 2007 (the most recent year for which 
Ukraine has provided its MFN tariffs to the WTO In tegrated Database), with a maximum rate of 50%, 
as shown in Table II.4.  Some 845 lines (7.6% of the total) carry non- ad valorem  rates, mostly 
covering food products.  Annex Table AII.2 indicat es which product groups carry the highest tariffs.  
As can be seen from Table II.4, Ukraine has substa ntially liberalized its basic (MFN) tariff over the 
decade.   
Table II.4  
Structure of Ukraine's applied basic tariff on imports, December 1996 and 2007 
(Per cent) 
  1996 2007 
Simple average applied rate 16.7 5.3 
WTO agricultural products 25.0 11.2 
WTO non-agricultural products 15.4 4.3 
Tariff range 0-350 0-50 
Tariff quotas (% of all tariff lines) n.a. 0.0 
Duty-free tariff lines (% of all tariff lines) 1.3 31.0 
Non- ad valorem  tariffs (% of all tariff lines) 14.4 7.6 
Total number of tariff lines 5,773 11,112 
n.a. Not applicable. 
Note: In 1996, Ukraine's tariff nomenclature differed from the 1992 version of the Harmonized System (HS) nomenclature.  Also, the 
Ukrainian authorities have indicated that at that period, changes to existing tari ffs occurred several times per year.  1996 Ta riff 
data for Ukraine has therefore b een estimated by the authorities. 
Source:  WTO Secretariat calculations , based on data provided by  the Ukraine authorities. WT/REG171/3 
Page 9 
 
 
19. Ukraine applied tariff-rate quotas for the first time in 1999, for raw cane sugar (HS 1701.11).   
The in-quota duty rate was set at 2% in 2009, the out-of-quota tariff at 50%.  Imports of raw cane sugar imported into Ukraine under bilateral or re gional trade agreements to which Ukraine is a 
signatory within the meaning of Article XXIV of  GATT 1994, are not counted towards the fulfilment 
of overall tariff rate quota limits.
7 
20. Ukraine's imports of all goods of Armenian or igin became entirely and immediately duty-free 
and quota-free upon the Agreement’s entry into force in December 1996.  This conferred a tariff 
preference to Armenian exporters, relative to Uk raine's basic average tariff (for non-preferential 
trading partners) of 16.7% applied in 1996 (Table II.4).  In 1996, only 1.3% of tariff lines were duty-free in 1996;  hence, most (99.7%) imports from Armenia (totalling US$5 million) were dutiable 
on an MFN basis.  Upon entry into force of the Agre ement, all the other tariff lines (i.e. those that 
were not already duty-free) became duty-free for imports from Armenia. 
Table II.5 
Ukraine:  Tariff elimination commitments under th e Agreement and corresponding average trade values 
Value of Ukraine's imports from Armenia 
corresponding to dutiable rates, 2006-07 Duty regime Average 
applied tariff 
(%) % of lines 
duty-free in million US$ % of Ukraine's total 
imports from Armenia 
"MFN" 1996 16.7 1.3  5.0a 99.7 
Agreement 1996 0.0 100.0 0.0 0.0 
MFN 2007(not applied to Armenia 
under the Agreement) 5.3 31.0 22.8a  79.9 
a Imports of products covered by tariff lines corresponding to MFN dutiable rates (not levied under the Agreement). 
Source:  WTO Secretariat based on data provided by the Ukra inian authorities, WTO-IDB and UNSD, Comtrade data. 
 
21. In 2006-07 on average, the value of those imports from Armenia corresponding to MFN 
dutiable tariff lines – i.e. the products for which Armenian exporters enjoy a tariff preference - had 
increased to US$22.8 million, or 79.9% of total im ports from Armenia.  The decline from 99.7% to 
79.9% probably reflected the fact that Ukraine had al so liberalized its tariff on an MFN basis during 
that period (see above Table II.5), and some of the traded products had become duty-free also on an MFN basis.  Further information on Ukraine's tariff liberalization vis-à-vis  Armenia is provided in 
Annex III. 
22. Table II.6 shows Ukraine's tariff averages by HS Section in 1996 and 2007.  It is for prepared 
foods and footwear products that Armenia enjoyed the largest tariff preference vis-à-vis  third country 
suppliers both in 1996 and in 2007.  At the tariff he ading level, Annex Table AII.2 shows that it is for 
the following prepared foods that this tariff prefer ence is strongest:  sugar, malt and tobacco products 
are subject to MFN tariffs averaging 30-50%, but  are duty-free when imported from Armenia.  As 
described in Annex II, bilateral trade in th ese products has expanded fast during the decade. 
 
Table II.6 
Ukraine:  Tariff elimination under the Agreement, by HS section 
HS section and description  1996 average of basic rates  
% Average under Agreement 
from Dec 1996 2007 MFN average 
% 
I Live animals and animal products 19.1 0 6.9 
II Vegetable products 19.4 0 8.4 
III Animal or vegetable fats and oils 25.5 0 8.1 
IV Prepared food etc. 39.6 0 14.0 
V Minerals 6.8 0 2.6 
VI Chemical and products 13.9 0 3.2 
VII Plastics and rubber 10.7 0 4.3 
Table II.6 (Cont'd) )
                                                      
7 Report of the Working Party on the accession of Ukraine to WTO (document WT/ACC/UKR/152) of  
25 January 2008.  WT/REG171/3 
Page 10  
 
HS section and description  1996 average of basic rates  
% Average under Agreement 
from Dec 1996 2007 MFN average 
% 
VIII Hides and skins 22.8 0 6.6 
IX Wood and articles 6.1 0 1.1 
X Pulp, paper etc. 11.9 0 2.7 
XI Textile and textile articles 24.7 0 5.6 
XII Footwear, headgear 24.5 0 10.1 
XIII Articles of stone 15.8 0 8.4 
XIV Precious stones, etc. 14.8 0 5.2 
XV Base metals and products 9.7 0 2.2 
XVI Machinery 14.6 0 3.9 
XVII Transport equipment 17.0 0 8.4 
XVIII Precision equipment 11.7 0 4.6 
XIX Arms and ammunition 13.5 0 6.5 
XX Misc. manufactured articles 18.7 0 8.1 
XXI Works of art, etc. 0.0 0 0.0 
Total 16.7 0 5.3 
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 data provi ded by Ukraine to the WTO-IDB. 
 
3. Rules of origin 
23. The Agreement covers trade in goods originatin g in the customs territory of one of the   
"Contracting Parties" (hereafter "Parties") destined  for the customs territory of the other Party.8  
Goods are defined according to the CIS Rules of Es tablishing the Country of Origin for Goods, which 
are common to all bilateral FTAs between CIS Members States.  The Resolution on the CIS "Rules of Establishing the Country of Origin for Goods" 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 
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). 
 
                                                      
8 "Goods" means any movable proper ty, including thermal, electric a nd other kind of power and means 
of transport (other than means of transport to be used  for international transportation of passengers and goods) 
being transferred/transmitted across th e custom borders (WT/REG82/5, p.3). WT/REG171/3 
Page 11 
 
 
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, and are used in the production of the final goods in one of the signatory States of the Agreement, the country of origin of such goods shall be the 
country where it was subject to the last substantial processing/transformation. 
In Paragraph 4, the Decision indicat es three elements to define the substantial processing/transformation 
criterion:  
(i) A change in the tariff cla ssification 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 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.  
 
24. A number of conditions apply to benefit from this duty-free status:  1. the goods must meet 
the rules of origin (see Box II.1);  2. the goods must be shipped directly from the territory of one of the Parties;  and 3. the goods must be purchased dir ectly from the enterprise or incorporated firm in 
one of the Parties.  The rule on "direct purchase"  is not fulfilled when goods are purchased in one 
Party from a representative of a firm or enterprise which is not a resident of a Party.
9  These "direct 
purchase and supply" rules in effect require that im ports arrive directly from CIS states and are not 
transported outside the CIS region. 
4. Export duties and charges and quantitative restrictions 
25. Ukraine maintains a number of export taxes ma inly on animal products, grains and scrap 
metal (Table II.7).  Some of these export taxes are no t applicable to exports to Armenia as a result of 
the Agreement.   
Table II.7  
Export duties levied by Ukraine, 1996 and 2009 
HS Tariff heading or code to 
which products belong Product description Duty in 1996 Duty rate 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 
Table II.7 (Cont'd)  
                                                      
9 WTO document WT/ACC/UKR/65, 23 July 1999. WT/REG171/3 
Page 12  
 
HS Tariff heading or code to 
which products belong Product description Duty in 1996 Duty rate in 2009 Applied to 
preferential trading 
partners, 2009 
1204 00, 1206 00, 1207 99 Flax, Sunflower seeds Not applicable 14% No 
720299 80; 7204 10 00;  7204 21; 7204 29 00;;  7204 50 10;  7218 10 00; Waste and scrap of 
cast iron, steel, etc Not applicable   €18 per tonne, or 
27%, depending on 
tariff line 
 No 
720299 80; 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 
 Yes 
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. REGULATORY PROVISIONS OF THE AGREEMENT  
1. Customs-related procedures  
26. The Agreement did not introduce any new customs- related procedures. Article 6 states that 
customs procedures are to be based on the unified , nine-digit Commodity Nomenclature of Foreign 
Economic Activities, itself based upon the Harmonized Commodity Description and Coding System (HS), as well as the Combined Tariffs and Statistics Nomenclature of the EEC.    
27. There have been no changes regarding trans it procedures as a result of the Agreement.  
However under Article 7, Contracting Parties adhere to the principle of freedom of transit as a major 
condition for achieving the Agreement's goal.  Par ties commit to provide unimpeded transit through 
their territories, and to supply exporters, importers , and carriers of any other third state with all 
facilities and services available and necessary for en suring transit on terms not worse than those 
granted to national exporters , importers, or carriers.  
2. Standards and technical regulations 
28. The Agreement does not contain explicit provisi ons on technical regulations or on standards-
related matters, including sanitary or phyto-sanitary measures or regulations.  
3. Safeguard mechanisms 
29. The Agreement does not refer specifically to any safeguard mechanism.  However, as noted 
above, Article 3 states that "Parties may introduce uni laterally quantitative or other special restrictions 
only within reasonable limits , and for a strictly defined time period.  These restrictions shall be of 
exceptional nature and may only be applied in cases provided for by the GATT agreements.  A 
Contracting Party which applies quantitative restric tions under this Article shall provide the other 
Contracting Party if possible in advance with fu ll information on the main reasons for introduction, 
forms and expected terms of application of the abovementioned restrictions, whereupon the 
consultations shall be set."   
30. Since 2003, Ukraine has introduced a series of safeguard measures on imports, mostly based 
on minimum import prices (Table II.8).  These measur es are applied to all trading partners, including 
preferential trading partners.  The safeguard  duty adds to the normally applied duty. 
 WT/REG171/3 
Page 13 
 
 
Table II.8 
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 made 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 metric tonnes; Second year – 15,230 metric tonnes; 
Third year – 15,955 metric tonnes In force 
 
Source:   Information provided by the Government of Ukraine. 
 
31. In March 2009, Ukraine notified the WTO of the introduction, as of 10 March 2009, of an 
import surcharge of 13%10, 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 refrigerat ors (HS tariff headings 8418, 8702, 8703, 8704).11  The 
surcharge applies to the customs value of the go ods, before payment of internal taxes if any 
(e.g. VAT, excise duties).  It is in addition to the cu stoms duty;  thus for example if the MFN tariff is 
10%, the total duty including the surcharge will amount to 23%. 
32. The surcharge applies to imports from all s ources except from Ukraine's preferential trading 
partners, namely CIS partners including Moldova, the Former Yugos lav Republic of Macedonia, and 
Singapore. 
33. This import surcharge was justified by the au thorities as a measure applied for balance of 
payments purposes (import duty surcharge), under Article XII of the GATT 1994 and under 
paragraph 9 of the Understandi ng on the Balance-of-Payments Provisions of GATT 1994.    
4. Anti-dumping and countervailing measures 
34. No anti-dumping or countervailing duty provisions are contained in the Agreement. 
5. Subsidies, State-aid and competition 
35. The Agreement does not contain any specific provisions concerning subsidies or state 
support.  The Parties declare in Article 5 that the following "unfair business practices" are 
incompatible with the purpose of the Agreement:  agreements or decisions made by enterprises or 
associations of enterprises, as well as busin ess practices aimed at hindering or limiting the 
competition or disrupting the competitive environmen t within the territories of the Parties; and the 
abuse of dominant position by one or few en terprises in the market of the Parties. 
                                                      
10 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”.    
 11 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/REG171/3 
Page 14  
 
6. Intellectual property protection 
36. The Agreement states (Article 8) that its provisions shall not prevent a Party from taking 
inter alia  non-agricultural and intellectual property measures to protect its vital interests, or to comply 
with international agreements to which it is or intends to become a party. 
D. G
ENERAL PROVISIONS OF THE AGREEMENT  
1. Exchange of information 
37. The Contracting Parties commit themselves to exchange, on a regular basis, information on 
laws and other regulations relate d to economic activities, including trade, investment, taxation, 
banking, insurance and other financial services, as well as information concerning transport, customs 
duties and statistics (Article 4).  Moreover, a Part y must inform the other about any changes in its 
national legislation which may affect the implemen tation of the Agreement.  The Parties may be 
assisted in coordinating the exchange of information by authorized national bodies. 
2. Exceptions 
38. Under Article 8, the Parties maintain their right  to take measures considered necessary for the 
protection of their "vital interests" or which ar e necessary to comply with other international 
agreements to which one of the Member St ates is, or intends to, become Party.   
3. Accession and withdrawal 
39. The Agreement contains no specific provisions  on accession to the Agreement by third 
countries.  As provided for in Article 13, the Agreem ent will remain into force for twelve months after 
the date when one of the Parties notifies to the other, in writing, its willingness to terminate the 
Agreement. 
4. Institutional framework 
40. To implement the objectives of the Agreem ent and to strengthen trade and economic 
cooperation between them, the Parties have es tablished an "Armenian-Ukrainian Commission" 
(Article 12).  The Commission is a standing adviso ry body which represents the Governments of the 
Parties in mutual economic relations and ensures the implementation of ob ligations under bilateral 
agreements and arrangements. The functions of th e Commission are set out in a Regulation signed by 
both Parties on 21 July 1997.  The Commission last met in May 2004.  
5. Dispute settlement 
41. Article 11 contains the Agreement's sole refe rence to dispute settlement.  It states that 
"Disputes between Contracting Parties related to inte rpretation or application of provisions of this 
Agreement shall be resolved by means of negotiations." 
6. Relationship with other agreements concluded by the Parties 
42. Article 10 prescribes that "the provisions of this Agreement replace the provisions of any 
other bilateral Agreement concl uded earlier by the Contracting Parties insofar as the latter are 
incompatible or identical with the present Agreement".  Free Trade Agreements concluded by the 
Parties are listed in Table II.9. 
 
 WT/REG171/3 
Page 15 
 
 
Table II.9  
Ukraine and Armenia:  Participation in other RTAs (n otified and non-notified in force), as of June 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 
Moldova 19.05.05 Goods 2008 GATT Art. XXIV 
Common Economic Zone 20.05.04 Goods 2008 GATT Art. XXIV 
Kazakhstan 19.10.98 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 
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 10.12.03  Goods Not notified 
ARMENIA 
Kazakhstan 25.12.01 Goods 2004 GATT Art. XXIV 
Georgia 11.11.98 Goods 2001 GATT Art. XXIV 
Turkmenistan 07.07.96 Goods 2004 GATT Art. XXIV 
Moldova 21.12.95 Goods 2004 GATT Art. XXIV 
Kyrgyz Republic 27.10.95 Goods 2000 GATT Art. XXIV 
CIS 30.12.94 Goods 1999 GATT Art. XXIV 
Russian Federation 25.03.93 Goods 2004 GATT Art. XXIV 
CIS: Commonwealth of Independent States 
GUAM: Georgia, Ukraine, Azerbaijan and Moldova 
Source: WTO Secretariat. 
 
 WT/REG171/3 
Page 16  
 
ANNEX I 
  
Table AI.1  
Armenia's main exports to the world, 1997 and average 2006-07 (Million US$)  
Tariff 
sub-heading Commodity Description 1997 Average 2006-2007 
220820 Spirits obtained by distilling grape wine, grape marc 18.6 93.7 
260300 Copper ores and concentrates 6.5 80.42 
261310 Molybdenum ores & concs., roasted 0.0 7.8 
090121 Coffee, roasted .. 6.8 
252310 Cement clinkers 0.7 6.5 
740400 Copper/copper alloy wa ste or scrap 13.2 6.4 
710231 Diamonds, non-industrial, un-worked simply sawn  0.0 6.1 
810299 Molybdenum & articles thereof,  0.2 5.7 
760200 Waste or scrap, aluminium 12.1 4.9 
400249 Chloroprene 4.8 23.9 
252329 Portland cement, other than white cement 1.8 20.6 
760711 Aluminium foil 0.4 20.0 
710239 Diamonds (jewellery) worked but not mounted or set 45.5 197.0 
720270 Ferro-molybdenum 2.3 196.7 
261390 Molybdenum ores & concs., other than roasted 0.0 18.4 
810294 Unwrought molybdenum, incl. bars & rods .. 18.3 
271600 Electrical energy 1.6 13.6 
720449 Ferrous waste or scrap, n.e.s. 12.1 1.5 
720429 Waste or scrap, of alloy st eel, other than stainless 1.8 1.4 
720421 Waste or scrap, of stainless steel 2.1 1.1 
854459 Electric conductors, 80-1,000 volts, no connectors 3.0 0.1 
720441 Waste from the mechanical working of iron or steel n.e.s. 1.8 0.0 
940600 Prefabricated buildings 2.3 0.0 
710229 Diamonds industrial, worked 1.8 .. 
620213 Womens, girls overcoats etc manmade fibre, not knit 2.9 .. 
 
Note: 1997 trade data is presented in HS 1992 nomenclature, while 2006-07 data is presented in HS1996 nomenclature.   
.. Not available. n.e.s.:
 Not elsewhere specified. 
 
Source:  UN Comtrade. 
 WT/REG171/3 
Page 17 
 
 
Table AI.2  
Ukraine's main exports to the world, average 1996-97 and 2006-07 
(Million US$)  
Tariff sub-
heading  Commodity Description  Average 
1996-1997  Average 
2006-2007 
720711 Rectangular iron or non-alloy steel bars 383.6 1,774.8 
720712 Semi-finished bars, iron or non-alloy steel 197.6 1,654.0 
271000 Oils petroleum, bituminous, di stillates, except crude 214.0 1,613.4 
721420 Bars & rods, indented or twisted, n.e.s. 30.9 1,351.3 
720851 Flat rolled products  .. 1,260.0 
720720 Semi-finished product, iron or non-alloy steel  166.8 1,215.5 
151211 Sunflower-seed or safflower oil, crude 81.6 1,062.2 
720839 Flat rolled products .. 856.1 
721391 Bars & rods, circular cross .. 839.6 
310210 Urea, including aqueous solution in packs >10 kg 364.4 833.1 
720852 Flat rolled products .. 606.8 
720230 Ferro-silico-manganese 204.7 604.1 
730511 Pipe-line submerged arc welded steel   273.7 576.0 
722540 Hot rolled alloy-steel, not in coil width >600mm, n.e.s. 40.9 508.2 
260112 Iron ore, concentrate, not iron pyrites, agglomerated 189.8 472.2 
100300 Barley 82.7 470.8 
720110 Pig iron, non-alloy 110.5 457.0 
720838 Flat rolled products  .. 415.2 
260111 Iron ore, concentrate, not iron pyrites, not agglomerated 244.5 409.6 
730439 Iron/non-alloy steel pipe or tubing  51.4 405.8 
281410 Anhydrous ammonia 217.5 404.7 
100190 Wheat except durum wheat, and meslin 111.2 392.7 
281820 Aluminium oxide, except artificial corundum 192.4 345.2 
271600 Electrical energy 134.7 334.1 
730410 Pipes, line, iron or steel, for oil or gas pipelines 144.9 95.2 
120600 Sunflower seeds 209.0 94.3 
401120 Pneumatic tyres new of rubber for buses or lorries 118.2 93.8 
020210 Bovine carcasses and half carcasses, frozen 223.7 60.0 
220710 Undenatured ethyl alcohol  170.4 39.3 
722820 Bar/rod of silico-manganese  steel not in coils 395.6 27.0 
110100 Wheat or meslin flour 117.4 16.0 
170199 Refined sugar, in solid form, n.e.s., pure sucrose 414.0 5.5 
720824 Hot rolled iron or non-alloy steel, coil 181.1 .. 
720841 Hot rolled iron or non-alloy steel, flat,  205.3 .. 
720842 Hot rolled iron or non-alloy steel, flat 146.9 .. 
721331 Hot rolled bar/rod, iron or non-alloy steel, coiled 321.7 .. 
.. Not available. 
n.e.s. Not elsewhere specified. 
Source:  UNSD Comtrade. 
 
 
 
  
 
  
 
  WT/REG171/3 
Page 18  
 
ANNEX II 
 
Table AII.1   
Armenia:  specific customs duties covering tobaccos a nd alcoholic beverages, 2008 
HS heading Product description Drama
 
2203  Beer  50 per litre  
2204  Grape wines  100 per litre  
220410  Sparkling wines  75 per litre  
2205  Vermouth and other wine of fresh grapes fla voured with plants or aromatic substances  140 per litre  
2206  Other brewed drinks (for example, cider, perry, mead);  60 per litre  
2207  Ethyl spirit  70 per litre  
220820  Spirit drinks made from distillation of gr ape wine and wine ingredients (cognac, 
armagnac, etc.)  1,100 per litre  
220830  Whiskies  370 per litre  
220840  Rum & tafia  420 per litre  
220850  Gin & Geneva  450 per litre  
220860  Vodka  240 per litre  
220870  Liquor, and fruit-vodka  600 per litre  
24021011  Cigars  1,500,000 per 1000 items  
24021012  Cigarillos  15,000 per 1000 items  
24022011  Cigarettes with filters  5,500 per 1000 items  
24022012  Cigarettes without filters  3,000 per 1000 items  
24022091    5,500 per 1000 items  
24022092    3,000 per 1000 items  
24029011 Other tobacco 1,500,000 per 1000 items 
24029012  15,000 per 1000 items 
24029013  5,500 per 1000 items 
24029014  3,000 per 1000 items 
a The Dram is the currency of Armenia.  The dram wa s valued at 307 drams per US dollar in December 2008. 
 
Source: WTO IDB. WT/REG171/3 
Page 19 
 
 
Table AII.2  
Ukraine:  MFN tariff heading averages at or above 20%, 2007, and corresponding averages in 1996 
HS 
heading  Description  1996  
Basic 
% Average under 
Agreement 
from Dec 1996  2007  
MFN 
% 
1701 Cane or beet sugar and chemically pure sucrose, in solid form: 50.0 0.0 50.0 
1602 Other prepared or preserved meat, meat offal or blood 30.0 0.0 30.0 
2402 Cigars, cheroots, cigarillos and cigarettes  30.0 0.0 30.0 
1107 Malt, whether or not roasted. 8.0 0.0 30.0 
1601 Sausages and similar products, of me at, food preparations  30.0 0.0 30.0 
4205 Other articles of leather or of  composition leather. 40.0 0.0 25.0 
8703 Motor cars and other motor vehicles  20.0 0.0 25.0 
4204 Articles of leather or of composition leather,  of a kind used in machinery   40.0 0.0 25.0 
0207 Meat and edible offal, of the poultry of heading 0105, fresh, frozen: 30.0 0.0 24.2 
0814 Peel of citrus fruit or melons (including watermelons), fresh, frozen, dried 10.0 0.0 20.0 
0701 Potatoes, fresh or chilled: 70.0 0.0 20.0 
1104 Cereal grains otherwise worked except rice  30.0 0.0 20.0 
0705 Lettuce (Lactuca sativa) and chicory (Cichor ium spp.), fresh or chilled: 15.0 0.0 20.0 
2006 Vegetables, fruit, nuts, , preserved by sugar (drained, glacé or crystallised). 30.0 0.0 20.0 
0706 Carrots, turnips, salad beetroot, salsify, celeriac, radishes etc 30.0 0.0 20.0 
0714 Manioc, arrowroot, salep, sw eet potatoes and similar root s and tubers  30.0 0.0 20.0 
0708 Leguminous vegetables, shelled or unsh elled, fresh or ch illed: 30.0 0.0 20.0 
1522 Degras; residues resulting from the treat ment of fatty substances. 10.0 0.0 20.0 
0812 Fruit and nuts, provisionally preserved  20.0 0.0 20.0 
1213 Cereal straw and husks, unprepared 5.0 0.0 20.0 
1103 Cereal groats, meal and pellets 10.0 0.0 20.0 
1210 Hop cones, fresh or dried, whether or not ground 30.0 0.0 20.0 
2302 Bran, sharps and other residues, whether or  not in the form of pellets 5.0 0.0 20.0 
1102 Cereal flours other than of wheat or meslin 20.0 0.0 20.0 
1903 Tapioca and substitutes therefor pr epared from starch 30.0 0.0 20.0 
0507 Ivory, tortoise-shell, whalebone  and whalebone hair 15.0 0.0 20.0 
8702 Motor vehicles for the transport of ten or more persons 16.7 0.0 20.0 
0501 Human hair, unworked, whether or not washed or scoured 5.0 0.0 20.0 
7114 Articles of goldsmiths’ and silversmiths’ wares and parts thereof 60.0 0.0 20.0 
7113 Articles of jewellery and parts thereof 33.3 0.0 20.0 
0502 Pigs', hogs' or boars' bristles and hair;  15.0 0.0 20.0 
0503 Horsehair and horsehair waste 15.0 0.0 20.0 
0505 Skins and other parts of birds 15.0 0.0 20.0 
2102 Yeasts (active or not active);  20.0 0.0 20.0 
0506 Bones and horn-cores, unworked 15.0 0.0 20.0 
0508 Coral and similar materials, unworked  5.0 0.0 20.0 
2308 Vegetable materials and ve getable waste 5.0 0.0 20.0 
2307 Wine lees;  30.0 0.0 20.0 
2305 Oil-cake and other solid residues. 5.0 0.0 20.0 
2303 Residues of starch manufacture and similar residues, beet-pulp, bagasse  5.0 0.0 20.0 
Source:   WTO Secretariat calculati ons based on data provided by Ukraine to the WTO-IDB.  
 
 
  WT/REG171/3 
Page 20  
 
ANNEX III 
 
Indicators of trade liberalizatio n under the Armenia-Ukraine FTA
 
 
 
1. A comparison between the scheduled elimination of tariffs applied to the Parties' mutual 
imports and the duty rates applied by Armenia and Ukraine to MFN imports is shown in Tables AIII.1 
(Armenia) and AIII.2 (Ukraine) below, by agricultu ral, non-agricultural and for all products.  Applied 
MFN duty rates in 2007 (Ukraine) and 2008 (Armenia), which are the most recent available in the WTO IDB Database, serve as a basis of comparison. 
2. In 2008, for the 27.2% of tariff lines where duties apply, Armenia had a flat MFN rate (10%), 
as presented in Table AIII.1.  The remaining 73% of Armenia's tariff lines are duty-free at an MFN 
level.  Its (unweighted) average MFN rate (2008) is 2.7% on all goods, with a higher average tariff 
applied to agricultural goods than to non-agricultural products.  Seventy-eight per cent of MFN tariffs 
on non-agricultural products are duty-free, while 37. 1% of agricultural tariffs are duty-free.    
Table AIII.1 
Armenia:  Indicators of tariff rate s 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 2008 2.7 10.0 73 6.7 10.0 31.7 2.2 10.0 78.3 
Ukraine 2008 0.0 0.0 100.0 0.0 0.0 100.0 0.0 0.0 100.0 
a "On dutiable" excludes duty-free tariff lines, and non- ad valorem  tariffs (on tobacco and alcoholic beverages). 
Source:  WTO IDB.  
3. Ukraine  has a variable MFN tariff structure with an (unweighted) average MFN rate of 5.3% 
on all goods in 2007, including the 31% of tariff lines that are duty free at an MFN level (Table AIII.2).  The average applied tariff for agricu ltural goods (11.2%) is nearly three times that of 
non-agricultural goods (4.3%).  Thirty-six per cent of non-agricultural products enjoy MFN duty-free 
tariffs, while 10.4% of agricultural products are duty-free.    
Table AIII.2 
Ukraine:  Indicators of tariff rate s applied to MFN and Armenian 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 5.3 7.9 30.9 11.2 11.4 10.4 4.3 8.7 35.9 
Armenia 2007 0.0 0.0 100.0 0.0 0.0 100.0 0.0 0.0 100.0 
a  "On dutiable" excludes duty-free tariff lines. 
Source:  WTO IDB. 
4. Table AIII.3 shows Armenia's main exports to Ukraine in 2006-07, an d their value a decade 
earlier in 1996-97, as well as Ukraine MFN tariffs on these products.  The main products exported by 
Armenia to Ukraine include molybdenum ores and products, subject to low MFN duties, and where 
the tariff advantage enjoyed by Armenian exporters is  consequently low; parts of electric machinery, 
subject to an average MFN rate of 7.3% on average; and fruit and vegetable preparations WT/REG171/3 
Page 21 
 
 
(including spirits) that are subject to high MFN tariffs in Ukraine and where Armenian exporters 
enjoy a substantial tariff preference as their ship ments enter Ukraine duty free if they meet the 
applicable rules of origin. 
Table AIII.3 
Armenia's main exportsa to Ukraine, 1997 and average 2006-07, and co rresponding average MFN Ukrainian tariffs 
US$ and per cent unless otherwise specified 
Sub-
heading Commodity Description Ukraine's 
average 
MFN tariff 
2009 1997 2006-2007 
720270 Ferro-molybdenum, in granular/powder form 2.0 7,243,944 12,035,981 
220820 Spirits obtained by distilling grape wine, grape marc 7.5 Euro per 
litre of pure  
alcohol 38,913 7,986,361 
852990 Parts suitable for use with the apparatus of 8525-8528  7.3 .. 3,950,079 
261390 Molybdenum ores & concs., other than roasted 2.0 1,763,382 3,946,380 
200799 Preparations of fruit (excl. citrus fruit) 16.5 1,429,393 1,536,118 
200290 Tomatoes, prepared or preserved other than by 
vinegar/acetic acid, other than whole... 20.0 1,100,607 1,044,618 
400249 Chloroprene rubber except latex 0.0 873,449 587,538 
841480 Air pumps, gas compressors & fans; ventilators 1.4 .. 538,600 
.. Not available. 
a HS Sub-headings corresponding to expor t values exceeding US$500,000 in 2006-07. 
Source:  UNSD Comtrade;  WTO estimates based on da ta provided by Ukraine to the WTO-IDB. 
 
5. Ukraine's main exports to Armenia in 2006 are di splayed in Table AIII.4, together with their 
value in 1997 and corresponding MFN tariffs applied to these products by Armenia to products of 
MFN origin.  Most products consist of steel, whic h enters Armenia duty-free and for which Ukrainian 
exporters therefore enjoy no tariff preference.  As ide from steel however, the main exports consist of 
products subject to the highest rates in Armenia:  cigarettes, vodka and other alcoholic beverages, and 
food products. The margin of preference granted by Armenia to Ukraine for these items varies from 
ten percentage points to the non- ad valorem  duties levied on tobacco and alcoholic products. 
Table AIII.4  
Ukraine main exportsa to Armenia, average 1996-97 and 2006-07, and corresponding Armenian MFN tariffs  
Exports to Armenia 
(US dollars) Tariff line Commodity Description Armenia's 
average 
MFN tariff 
2008 1996-1997 2006-2007 
721420 Bars & rods, indented or tw isted, n.e.s. 0 105,500 29,868,988 
271000 Petroleum oils 0 176,119 24,346,328 
240220 Cigarettes containing tob acco 5,500/1000 items .. 19,807,462 
730511 Pipe-line submerged arc welded steel diameter >406mm 0 .. 5,954,814 
721391 Bars & rods, circular cross 0 .. 5,479,499 
220860 Vodka 240 drams/l .. 4,167,315 
730630 Pipes, iron/steel welded, diameter <406.4mm 0 .. 3,923,685 
180690 Chocolate/cocoa food preparations 10 143,839 3,761,128 
151219 Sunflower or safflower oil, fract ions simply refined 10 8,390 3,148,899 
870210 Diesel powered buses 10 .. 3,114,629 
151211 Sunflower-seed or safflower oil, crude 10 40,649 2,759,588 
220290 Non-alcoholic beverages , except juices 10 .. 2,676,034 
040299 Milk and cream sweetened or concentrated 10 26,429 1,901,410 
271320 Petroleum bitumen 0 .. 1,828,002 
720839 Flat rolled prod/coils>3mm 0 .. 1,764,769 
170490 Sugar confectionery not chewing gum, no cocoa content 10 151,799 1,693,318 
722820 Bar/rod of silico-manganese st eel not in coils 0 184,949 1,686,636 
151710 Margarine, except liquid margarine 10 .. 1,625,670 
Table AIII.4 (Cont'd)  WT/REG171/3 
Page 22  
 
Exports to Armenia 
(US dollars) Tariff line Commodity Description Armenia's 
average 
MFN tariff 
2008 1996-1997 2006-2007 
210690 Food preparations 10 .. 1,516,810 
401120 Pneumatic tyres new of rubber for buses or lorries 0 402,475 1,515,073 
040210 Milk powder < 1.5% fat 10 69,605 1,478,196 
100590 Maize except seed corn 0 .. 1,441,634 
261400 Titanium ores and concentrates 0 8,959 1,352,669 
220300 Beer made from malt 50 drams/l 36,649 1,285,817 
721710 Wire, plated 0 .. 1,203,089 
110319 Cereal groats or meal except wheat, maize, rice, oats 10 170,745 1,007,275 
100190 Wheat except durum wheat, and meslin 0 2,867,120 813,985 
300490 Medicaments in dosage 0 285,139 675,075 
220410 Grape wines, sparkling 75 drams/l 1,007,629 .. 
220710 Undenatured ethyl alcohol > 80%  by volume 70 drams/l 7,059,814 .. 
Note: The dram was valued at 307 drams per US dollar in December 2008. 
.. Not available. 
a HS Sub-headings corresponding to expor t values exceeding US$500,000 in 2006-07. 
 
Source:  UNSD-COMTRADE;  WTO estimates based on data provided by Armenia to the WTO-IDB. 
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