WORLD TRADE  
ORGANIZATION  WT/REG121/6 
30 June 2009 
 (09-3202) 
Committee on Regional Trade Agreements  
  
 
  
 
FACTUAL PRESENTATION 
 
Free Trade Agreement 
between 
Georgia and Ukraine 
(Goods) 
 
Report by the Secretariat 
 
 
 
This report, prepared for the consideration of the Free Trade Agreement between Georgia and Ukraine has been drawn up by the WTO Secretariat on its own responsibility and in full consultation with the Parties.  The report h as been drawn up in accordance with 
the rules and procedures contained in  the Decision for a Transparency 
Mechanism for Regional Trade Agreements (WT/L/671).  
 
Any technical questions arising from this report may be addressed to Catherine Hennis-Pierre (tel: +41 22 739 56 40).  WT/REG121/6 
 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. Liberalization by Ukraine 7  
3. Liberalization by Georgia 9  
4. Rules of origin 12  
5. Export duties and charges 14  
C. REGULATORY PROVISIONS OF THE AGREEMENT  14  
1. Customs-related procedures 14  
2. Standards and technical regulations 14  
3. Anti-dumping, countervailing and safeguard measures 15  
4. Subsidies, state-aid and competition 16  
D. GENERAL PROVISIONS OF THE AGREEMENT  16  
1. Exchange of information 16  
2. Exceptions 16  
3. Accession and withdrawal 16  
4. Institutional framework 16  
5. Dispute settlement 16  
6. Relationship with other agreements concluded by the Parties 17  
 
ANNEX I  18  
 
ANNEX II  20  
 
ANNEX III  21  
 
  WT/REG121/6 
 Page 1 
 
 
 GEORGIA-UKRAINE FREE TRADE AGREEMENT (GOODS) 
 
Factual Presentation by the Secretariat  
  I. TRADE ENVIRONMENT 
1. Georgia and Ukraine began their transition to a market-based economy after becoming 
independent from the Soviet Union in 1991.  Both countries experienced a very strong economic contraction during 1990-95, when income per capita was halved in purchasing power terms.  After 
1995 in Georgia, and after 1998 in Ukraine, real pe r capita incomes grew uninterruptedly until 2007.  
Nevertheless, it took the two countries 16 years to rec over their real per capita income levels recorded 
in 1990.  In 2007, Georgia and Ukraine ranked 136
th and 49th respectively in terms of global 
merchandise exports and 107th and 42nd among the world's importers of goods respectively.1 
05001,0001,5002,0002,5003,0003,5004,0004,5005,0005,5006,0006,5007,0007,5008,000
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007Purchasing power parities (in current  $)Chart I.1 - Real income per capita: 1990-2007
Georgia
Ukraine
Source : World Bank Development Indicators viewed at  http://ddp- ext.worldbank.org/ext/DDPQQ/report.do?method=showReport .
 
2. Georgia, although relatively small in size and population, is located in a strategically 
important transit corridor between the Black a nd Caspian Seas (see Map 1).  Since regaining 
independence, the country has been handicapped by ci vil war, and by a difficult relationship with its 
main neighbour Russia, which maintains a ban on cer tain imports from Georgia;  the land border with 
Russia has been closed since 2006.  Therefore, trade between Georgia and Ukraine is essentially sea 
or air borne.  The country suffered a long and pa rticularly deep recession in the early 1990s 
(Chart I.1), and the situation did not improve markedly until the Rose Revolution of 2003, when 
economic reforms were put in place that rekindled  economic growth.  In 2007, Georgia had a total 
population estimated at 4.4 million, and a GDP estimated at US$10.2 billion, resulting in an average GDP per capita of US$2,300 in nominal terms. 
 
 
                                                     
 
1 See WTO Trade Profiles at: http://stat.wto.org. WT/REG121/6 
Page 2  
 
 Map 1:  Commonwealth of Independent States
 
 
 
 
 
3. Georgia's exports of goods and services had been  relatively stable at about 40% of GDP, but 
dropped to less than 20% of GDP in 1994.  It's overa ll export growth has not been particularly strong 
thereafter (Chart I.2);  in contrast, imports adva nced dramatically after 2003, both from Ukraine and 
from the world in general.  This resulted in a la rge trade deficit:  Georgia's exports and imports 
amounted to US$1,240 million and US$5,217 million r espectively in 2007, with a merchandise trade 
deficit in the order of US$3 billion. 
4. Ukraine has gained importance as a merchandise tr ade partner for Georgia over the decade:  
In 2007, Georgia's imports from Ukraine amounted to  US$575 million, or 11% of its total imports.  
This compared with imports of US$39 million in 19 96, corresponding to 5.7% of its total imports at 
that time.  Exports by Georgia to Ukraine amounted  to US$94.2 million in 2007, or 7.6% of total 
exports;  this compared with US$5.4 million in 1996 or 2.7% of total exports.  WT/REG121/6 
 Page 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 - Georgia: Merchandise imports from and exports to world
and Ukraine, 1996-2007
Source : UNSD, Comtra de database.Imports from Ukraine
Exp ort s to Uk r aineTotal imports
Total exportsLe ft  hand sale : Right hand sale:
Note:  data not available for the period preceding 1996.
 
 
5. Ukraine's economic expansion was more erratic over 2000-07, with an average growth of 8% 
including strong expansion, in 2004 (over 12% real GDP growth), and sharp economic slowdown 
(+2.7% in 2005).  Its exports of goods and services expanded on average by 4% (Chart I.3), also subject to strong fluctuations reflecting developm ents in world markets for steel, Ukraine's main 
export product.
2  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.3   
6. The value of Ukraine's total merchandise expor ts and imports amounted to US$49.25 billion 
and US$60.67 billion in 2007. The main commodities exported are base metals (Chart I.4), dominated 
by iron and steel.  Exports of minerals (10.5% of  total exports) included re fined petroleum products.  
Exports of agricultural products consist mainly of wheat, barley, and sunflower seed.  The European 
Union (31.5% of Ukraine's exports) and the Russi an Federation (22.5%) together account for more 
than half of Ukrainian exports.  Other important trading partne rs are Turkey, Belarus and the 
United States.  
7. Georgia is not a large trading partner for Ukrain e.  Moreover, Georgia has lost importance as 
an export market for Ukraine over the decade, but gained importance as a source of imports:  
Ukraine's exports to Georgia (US$1.7 billion in 200 7) amounted to about 0.6%  of Ukrainian exports, 
compared to US$183 million and 1.3% of total Ukrain ian exports in 1996.  Ukraine's imports from 
Georgia amounted to US$335 million in 2007, correspondi ng to 0.1% of total imports;  In 1996, these 
two statistics were respectively US$3.8 million and 0.02%.   
                                                      
2 IMF (2007), "Ukraine: 2006 Article IV Consultation—Staff Report;  Staff Statement;  and Public Information 
Notice on the Executive Board Discussion", viewed at  http://www.imf.org/extern al/pubs/ft/scr/2007/cr0750.pdf . 
3 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/REG121/6 
Page 4  
 
 010203040506070
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 20070.000.100.200.300.400.500.600.70US$billion US$billionChart I.3 - Ukraine: Merchandise imports from and exports to world 
and Georgia, 1996-2007
Source : UNSD, Comtrade database.Imports from Georgia
Exports to GeorgiaTotal imports
Total exportsLeft hand sale: Right hand sale:
Note:  data not available for the period preceding 1996.
 
 
8. As can be seen from Chart I.4, the two countri es share a similar export structure, dominated 
by exports of base metals, followed by prepared fo ods;  minerals; and vehicles.  Annex Tables AI.1 
and AI.2 provide more details on the top exports of  each Party, and their evolution between 1996-97 
and 2006-07.  They highlight the importance of b ase metals in both Parties' exports as well as 
prepared foods for Georgia and minerals for both Ge orgia and Ukraine.  However, the structure of 
their bilateral trade does not fully mirror this expor t structure with prepared foods accounting for over 
half of Ukraine's imports from Georgia on averag e during 2005-07.  A more detailed presentation of 
bilateral trade between the Parties is contai ned in Annex Tables AIII.3 and AIII.4.   
 
  WT/REG121/6 
 Page 5 
 
 
 Chart I.4
Ukraine and Georgia: product compos ition of merchandise trade, annual 
average 2005-07
Ukraine's imports from Georgia Georgia's imports from Ukraine
Source:  UNSD, Comtrade database.                Per cent
Total:  US$71.2 million Total:  US$371.5 million
Total:  US$47,248 million Total: US$3,793 million
Total:  US$40,630 million Total:  US$1,030 millionUkraine's global exports Georgia's global exportsUkraine's global imports Georgia's global imports Vehicles 7.7
Vehicles 11.7Plastics 5.6
Base metals 
24.3
Vehicles 5.8Minerals 7.1
Machinery
16.8
Base metals
42.0Other 
10.6Other 
3.7
Chemicals 8.6Vegetables 8.7
Minerals 19.7
Vehicles 11.7
Fats and oils 2.7
Minerals 10.5Precious stones  5.2Other
2.5
Other
17.0
Other 10.4Prepared foods  15.6
Minerals 29.8
Machinery 17.5 Chemicals  
8.7Prepared foods 3.7Textiles 3.0
Minerals 13.5Pulp of wood 2.6Other 10.0
Miscellaneous  2.7
Prepared foods  7.8
Chemicals 8.2Prepared foods 
57.4
Vehicles
11.7Base metals 12.4Minerals 10.3
Base metals 17.4
Base metals 6.5Plastics 3.6
Vegetables 5.3
Vegetables 4.4Base metals 
24.1
Textiles 3.3
Vegetables  
8.8Vegetables 4.6Animals 3.2Chemicals 2.0
Vehicles 3.9
Fats and oils 3.8
Machiner y 8.2Chemicals 4.4Pulp of wood  2.2
Chemicals 7.4
Machinery 9.1Prepared foods 3.9Textiles 2.3 Machinery 4.8Animals 2.8
Animals 2.4Articles of stone 2.4
Prepared foods
17.9Articles of wood 1.9
 
 WT/REG121/6 
Page 6  
 
 II. CHARACTERISTIC ELEMENTS OF THE AGREEMENT 
A. B
ACKGROUND INFORMATION  
9. After independence from the Soviet Union in 1991 both Georgia and Ukraine became 
members of the "Agreement on Creation of a Free Trade Area between the Commonwealth of Independent States (CIS FTA)", signed on 15 Apr il 1994, and its related "Protocol on Amendments 
and Supplements", dated 2 April 1999.
4  One of the objectives of the CIS FTA was (Article 1) 
"a gradual cancellation of customs duties, taxes and levies which have equivalent effect and 
quantitative restrictions in mutual trade".   
10. Accordingly, all customs duties and similar m easures were to be abolished except for those 
specifically included in lists of exceptions that would form an integral part of the CIS FTA;  such lists 
would also contain a "stage-by-stage cancellation of  such exceptions for a transitional period before 
the creation of a free-trade area".  In the case of Georgia, all imports from CIS partners have been duty-free and quota-free since the CIS entered into force for Georgia, on 6 December 2006.  In the 
case of Ukraine, the CIS FTA entered into force on 15 December 1999.  
11. Pending the effective implementation of the CIS FTA, its Article 3.3 foresaw that bilateral 
free-trade agreements would be  concluded among the CIS Members.  The Free Trade Agreement 
between Georgia and Ukraine (hereafter "the Agreement") constitutes one of these bilateral 
agreements.  It was signed in Tbilisi on 9 January 1995 and entered into force on 4 June 1996.  The 
Agreement is composed of 13 Articles.  Georgi a became a Member of the WTO on 14 June 2000, and 
Ukraine on 16 May 2008.  Prior to that date thei r Most-Favoured-Nation (MFN) tariffs were their 
"basic" tariffs, which applied to all trading partners  except, for those products concerned, to free trade 
agreements partners.  The Republic of Georgia notified the Agreement to the WTO on 2 April 1996 
under Article XXIV of GATT 1994 (WT/REG121/N/1).  Th e text of the Agreement was circulated to 
WTO Members as document WT/REG121/1.  The term s of reference for its examination were 
adopted by the Council for Trade in Goods on 14 March 2001 (WT/REG121/2).  
B. N
ATIONAL TREATMENT AND MARKET ACCESS PROVISIONS OF THE AGREEMENT  
1. General provisions 
12. The Agreement covers trade in goods origina ting in the customs territory of one of the 
"Sides" (hereafter "Parties") destined for the customs territory of the other Party.  Goods are defined 
according to the CIS Rules of Establishing the Coun try of Origin for Goods (see below Rules of 
Origin).  The Agreement aims to effectively estab lish a free trade area in line with the definition set 
out in Article XXIV.8(b) of GATT 1994, as duties a nd other restrictive regulations of commerce are 
eliminated on substantially all bilateral trade.  Ex ceptions (under Article 1) are to be agreed to in 
separate resolutions.  As of January 2009, one su ch resolution had been drafted, concerning sugar 
products imported by Ukraine (see below).    
13. Under Article 2, the Parties accord national and MFN treatment to originating commodities 
covered by the Agreement, with regard to (a) lo cal taxes or charges; (b) rules for warehousing, 
reloading, storage and transportation;  and (c) repayments and remittances. 
                                                      
4 These agreements were notified to the WTO on 1 October 1999 (WT/REG82/N/1).  CIS membership:  
Azerbaijan, Georgia, Belarus, Kaza khstan, Kyrgyz Republic, 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.  WT/REG121/6 
 Page 7 
 
 
 14. The Agreement does not specifically refer to quotas, tariff-rate quotas, or other quantitative 
restrictions on imports or exports, except under Ar ticle 2 which states that "Sides will not introduce 
special restrictions or demands towards export or import of goods, covered by the present agreement, 
that in similar cases ar e not used towards analogous goods of the local production or those produced 
in third countries".  As described below, Ukraine introduced a tariff-rate quota on sugar in 1999, but it 
did not apply to Georgia. Georgia has not applied any such measures to its trade with Ukraine since 
entry into force in December 1996. 
2. Liberalization by Ukraine 
15. As can be seen from Table II.1, Ukraine has s ubstantially liberalized its basic (MFN) tariff 
over the 1996-2009 period: Ukraine's MFN applied tari ffs averaged 16.7% in 1996, the year of entry 
into force of the Agreement, and 4.9% in 2009 (t he most recent year for which Ukraine has provided 
its MFN tariffs to the WTO Integrated Database ), with a maximum of 86.9% in 2009, down from 
350% in 1996.  The incidence of non- ad valorem  tariffs has been reduced:  Some 183 lines (1.6% of 
the total) carried non ad valorem  tariff rates in 2009, mostly covering food products. 
Table II.1  
Structure of Ukraine's applied basic tari ff on imports, December 1996, and March 2009 
(Per cent) 
  MFN 1996 Agreement 1996 MFN 2009a
 Agreement 2009b 
Simple average applied rate 16.7 0.0 4.9 0.1 
WTO agricultural products 25.0 0.0 9.8 0.2 
WTO non-agricultural products 15.4 0.0 3.8 0.0 
Tariff range 0-350 0-0 0-86.9 0-50 
Tariff quotas (% of all tariff lines) n.a. n.a. 0.0 n.a. 
Duty-free tariff lines (% of all tariff lines) 1.3 100 36.4 99.7 
Non- ad valorem  tariffs (% of all tariff lines) 14.4 0 1.7 0.2 
Total number of tariff lines 5,773 5,773 11,056 11,056 
n.a. Not applicable. 
 
a Including the March 2009 import surcharge, and the ad valorem  component of safeguard duties. 
b Including the ad valorem  component of safeguard duties. 
Source:   WTO estimates based on data  provided by Ukraine.   
 
16. Upon the Agreement’s entry into force in Dece mber 1996, Ukraine's imports of all goods of 
Georgian origin became entirely and immediatel y duty-free and quota-free.  This conferred an 
average 16.7% tariff preference to Georgian exporters relative to non-preferential trading partners 
(Table II.1).  In 1996, only 1.3% of tariff lines were duty-free in 1996 (Table II.2);  hence, most 
imports (99.6%) from Georgia (totalling US$5.44 mil lion in 1996-97) were dutiable at the MFN rate 
prior to entry into force of the Agreement;  upon en try into force, these imports became duty-free for 
imports from Georgia.   
17. By 2009, the tariff preference conferred to Georgia under the Agreement had been largely 
eroded by MFN tariff liberalization. Indeed, in 2009  21.3% of Ukrainian imports from Georgia (using 
2006-07 trade data), had become MFN duty-free, while  78.7% of imports still came in under lines that 
enjoyed duty-free status only under the Agreement. Further information on Ukraine's tariff liberalization vis-à-vis  Georgia is provided in Annex III.   WT/REG121/6 
Page 8  
 
 Table II.2 
Ukraine:  Tariff elimination commitments under the Agree ment and corresponding average trade values for 1996-1997 and 
2006-2007 
Value of Ukraine's imports from Georgia 
1996-1997 2006-07 
Duty phase-out period Number 
of lines % of total 
lines in 
Ukraine's 
tariff 
schedule in 
million 
US$ % of 
Ukraine's 
total imports 
from Georgia in 
million 
US$ % of Ukraine's 
total imports 
from Georgia 
MFN Duty free (1996) 74 1.3 0.02 0.4   
Duty-free under the Agreement (1996) 5,689 98.5 5.44 99.6   
Remain dutiable under the Agreement (2004) 10 0.2 0 0   
MFN duty-free (2009) 4,022 36.4   18.0 21.3 
Duty-free under the agreement (2009) 6,997 63.3   66.5 78.7 
Remain dutiable under the Agreement (2009) 37 0.3   0.0 0.0 
Source:   WTO estimates based on data provided by  Ukraine and UNSD, Comtrade data.   
 
18. As can be seen from Table II.2, not all Uk rainian tariffs are duty-free for imports from 
Georgia:  in 2004 Ukraine passed a resolution "On te mporary exclusion of sugar and sugar syrup from 
free trade regime with Georgia a nd Russia".  Since then, imports of these products (Table II.3) are 
subject to the same import duties as for non preferential trading partners.    
Table II.3 
Tariffs applied to sugar products imported from Geor gia by Ukraine and excluded from the duty-free regime, 2009 
Tariff line Product description MFN duty 
applied   
1701 11 10 00  - Cane sugar for refining  
1701 11 90 00  - Other cane sugar 
1701 12 10 00  - Beet sugar for refining  
1701 12 90 00  - Other beet sugar 
1701 91 00 00  - Sugar containing adde d flavouring or colouring matter 
1701 99 10 00  - White sugar 
1701 99 90 00  - Other 50% 
1702 19 00 00  
1702 30 59 00  
1702 30 99 00  
1702 40 90 00  1702 60 95 00  
1702 90 71 00  
1702 90 79 00  1702 90 99  Other sugars, including chemically pure lactose, malt ose, glucose and fructose, in solid form; sugar 
syrups not containing added flavouring or colouring matter; artificial honey, whether or not mixed with 
natural honey; caramel 5% 
2106 90 20 00  
2106 90 59 00  Food preparations not elsewhere specified or included 10% 
Source:  Resolutions of the Cabinet of Ministers of Ukrain e; and data provided by the Ukrainian authorities. 
 
19. Table II.4 shows Ukraine's tariff averages by HS Section in 1996 and 2009.  It is for prepared 
foods and footwear products that Georgia enjoyed the largest tariff preference vis-à-vis  third country 
suppliers both in 1996 and in 2009.  At the tariff heading level, Annex Table AII.1 shows that this 
tariff preference is for wines, fruit and vegetables,  and tobacco products;  many of these products are 
subject to MFN tariffs averaging 20-30% but are duty-free when imported from Georgia;  sugar is also subject to tariffs of at least 50%, which si nce 2004 also apply to Georgian shipments.     WT/REG121/6 
 Page 9 
 
 
 Table II.4 
Ukraine:  MFN tariff averages and eliminat ion under the Agreement, by HS section 
Average under Agreement  HS section and description  1996a average of 
basic rates %  
Dec 1996a 2009a 2009a MFN average 
% 
I Live animals and animal products 19.1 0.0 0.0 7.1 
II Vegetable products 19.4 0.0 0.0 9.1 
III Animal or vegetable fats and oils 25.5 0.0 0.0 8.6 
IV Prepared foods etc. 39.6 0.0 0.5 10.8 
V Minerals 6.8 0.0 0.0 2.6 
VI Chemicals and chemical products 13.9 0.0 0.0 3.2 
VII Plastics and rubber 10.7 0.0 0.0 3.7 
VIII Hides and skins 22.8 0.0 0.0 5.8 
IX Wood and articles 6.1 0.0 0.0 0.6 
X Pulp, paper etc. 11.9 0.0 0.0 0.0 
XI Textiles and textiles articles 24.7 0.0 0.0 5.7 
XII Footwear, headgear 24.5 0.0 0.0 10.0 
XIII Articles of stone 15.8 0.0 0.7 7.7 
XIV Precious stones, etc. 14.8 0.0 0.0 4.3 
XV Base metals and base meta ls products 9.7 0.0 0.0 1.7 
XVI Machinery 14.6 0.0 0.0 3.1 
XVII Transport equipment 17.0 0.0 0.0 7.6 
XVIII Precision equipment 11.7 0.0 0.0 3.3 
XIX Arms and ammunition 13.5 0.0 0.0 6.2 
XX Misc. manufactured articles 18.7 0.0 0.0 5.6 
XXI Works of art, etc. 0.0 0.0 0.0 0.0 
Total 16.7 0.0 0.1  4.9 
 
a For the calculation of tariff  averag es, specific rates are excluded but the ad valorem  part of alternate rates are included.  
Averages include the March 2009 import surcharge, and the ad valorem  component of safeguard duties. 
 
Source:   WTO estimates based on da ta provided by Ukraine. 
 
20. Ukraine applied tariff-rate quotas for the first time in 1999, on two tariff lines corresponding 
to raw cane sugar (HS 1701.11).  The in-quota duty ra te was set at 2 % in 2009, the out-of-tariff quota 
at 50%.  Imports of raw cane sugar imported into Ukraine under bilateral or regional trade agreements 
to which Ukraine is a signatory within the meaning of Article XXIV of GATT 1994, are not in principle counted towards the fulfilment of overall tariff rate quota limits.
5  However, according to the 
Ukrainian authorities, imports of sugar products from Georgia are subject to the tariff quota system. 
21. Also, since 2003 imports of certain products ar e subject to special safeguards, which are 
applied to both preferential and non-preferential partners.  Following this, in March 2009, Ukraine 
introduced an import surcharge of 13% on motor vehicl es and refrigerators, that apply to all imports 
except those from preferential trading partners .  These are described below (3. Anti-dumping, 
countervailing and safeguard measures).      
3. Liberalization by Georgia 
22. In 1996, at the time of entry into force of the Agreement, Georgia's basic tariff rates were all 
ad valorem .  Customs tariffs were levied at the rate of  zero or 12%.  In 2006, specific import duties 
were introduced on imports of alcoholic beverages (s ee Table II.8).  Nevertheless, as can be seen from 
Table II.5, Georgia undertook substantial liberalizat ion of its MFN tariff regime over the 15 year 
period.  The simple average MFN tariff had declined to 1.5%, from 10.7% in 1995. 
 
   
                                                     
 
5 Report of the Working Party on the accession of Ukraine to WTO (document WT/ACC/UKR/152) of  
25 January 2008.  WT/REG121/6 
Page 10  
 
 Table II.5 
Structure of Georgia's applied basic tariff, 1995 and applied MFN tariff, 2009 
(Per cent) 
  MFN 1995 Agreement 1996  MFN 2009 
Simple average applied rate (of ad valorem  rates) 10.7 0 1.5 
WTO agricultural products 8.5 0 6.9 
WTO non-agricultural products 11.3 0 0.23 
Tariff range (of ad valorem  rates) 0% - 12%  0 0% - 12%  
Tariff quotas (% of all tariff lines) n.a. 0 n.a. 
Duty-free tariff lines (% of all tariff lines) 11.0 100 85.8 
Non- ad valorem  tariffs (% of all tariff lines) 0.0 0 1.7 
Total number of tariff lines 10,515 10,515 10,895 
n.a. Not applicable. 
 
Source:  WTO Secretariat calculations, based on data provided by the Georgian authorities to TPRD. 
 
23. Georgia granted full and immediate duty-free treat ment to imports of Ukrainian origin upon 
the Agreement’s entry into force in December 1996.  Pr ior to that date, Georgia levied its basic rate of 
tariff on imports from Ukraine, which was either 0 or 12%.  In terms of average 1996-97 import values, about half of Georgia's imports of US$4 7 million (11% of tariff lines) from Ukraine were 
already duty-free prior to the Agreement's entry in to force;  an additional 48.9% of imports from 
Ukraine became duty-free as a resu lt of the Agreement (Table II.6).  Ten years later, in 2006-07 on 
average, imports totalled US$385.4 million, 20% entering under lines benefiting from tariff 
preferences, and 80% entering duty-free on an MFN basis. 
Table II.6 
Georgia:  Tariff elimination commitments under th e Agreement and corresponding average trade values   
% of total lines in Georgia's 
tariff schedule Value of Georgia's imports 
from Ukraine 
1996-1997 2006-07 Duty phase-out period Number of lines 
in million 
US$ % of 
Georgia's total 
imports from 
Ukraine in million  
US$ % of 
Georgia's 
total imports 
from Ukraine 
MFN Duty free (1996) 1,153 11.0 24.2 51.1   
Duty free under the Agreement (1996) 9,362 89.0 23.1 48.9   
MFN Duty free (2009) 9,346 85.8   309.4 79.9 
Duty-free under the agreement (2009) 1,549 14.2   77.9 20.1 
Source:   WTO estimates based on data provided by Ukra ine to the WTO-IDB and UNSD, Comtrade data. 
 
24. As a result of the Agreement, Ukrainian supp liers to Georgian markets enjoyed tariff 
preferences ranging between 11% and 12% in most  sectors except live animals and animal products 
(HS Section I) and animal and vegetable fats and o ils (HS Section III).  However, the situation had 
changed entirely in 2009, when tariff preferences  have almost entirely disappeared because of 
declines in MFN tariffs, the exception being animal products where tariffs ha ve increased somewhat 
(Table II.7). 
     
  WT/REG121/6 
 Page 11 
 
 
 Table II.7 
Georgia:  Tariff elimination under the Agreement, by HS section 
HS section and description  1995 average basic rates %  Average under Agreement  2009 MFN average % 
I Live animals and animal products 0.5 0.0 4.8 
II Vegetable products 11.0 0.0  6.7 
III Animal or vegetable fats and oils 0.0 0.0  0.0 
IV Prepared foods etc. 11.6 0.0  8.4 
V Minerals 12.0 0.0  4.3 
VI Chemicals and chemical products 10.9 0.0  0.0 
VII Plastics and rubber 11.9 0.0  0.0 
VIII Hides and skins 12.0 0.0  0.0 
IX Wood and articles 12.0 0.0  0.0 
X Pulp, paper etc. 11.7 0.0  0.0 
XI Textiles and textiles articles 12.0 0.0  0.0 
XII Footwear, headgear 12.0 0.0  0.0 
XIII Articles of stone 11.8 0.0  3.3 
XIV Precious stones, etc. 12.0 0.0  0.0 
XV Base metals and products 12.0 0.0  0.0 
XVI Machinery 12.0 0.0  0.0 
XVII Transport equipment 11.9 0.0  0.0 
XVIII Precision equipment 10.7 0.0  0.0 
XIX Arms and ammunition 12.0 0.0  0.0 
XX Misc. manufactured articles 11.9 0.0  0.0 
XXI Works of art, etc. 12.0 0.0  0.0 
Total 10.7 0.0  1.5 
Note: For the calculation of MFN averages specific rates are excluded. 
Source:   WTO estimates based on data provided by Georgia to TPRD. 
 
25. Imports of alcoholic products into Georgia are subject to specific customs duties (Table II.8).  
Imports from Ukraine are exempt from the payment of these customs duties.   
Table II.8  
Specific import duties on alcoholic products, 2009  
HS number Product description Customs Duty Rate  
220410 Sparkling wines €1.5/litre 
220421 Grape wines €0.5/litre  
220429 Grape wines €0.2/litre  
220430 Grape wines €0.2/litre  
2205 Vermouth and other wine of  fresh grapes  €0.5/litre  
2206 Other brewed drinks (for example,  cider, perry, mead); €0.5/litre  
2207 Ethyl spirit  €3/litre  
2208 Spirit drinks, including  €1.5/litre  
220820 Made from distillation of grape wine (cognac, armagnac, etc.) €5/litre  
220830 Whiskies €5/%vol/HL 
220840 Rum & tafia €5/ %vol/HL  
220850 Gin & Geneva  €5/ %vol/HL  
220860 Vodka €5/%vol/HL  
220870 liquor, and fruit-vodka €5/ %vol/HL  
220890 Other €5/%vol/HL  
2209 Vinegar €1.5/litre  
Source: Government of Georgia. 
 
26. A number of products are subject to excise tax in Georgia, mainly, alcoholic beverages, 
tobacco products, petroleum products and motor vehicl es (Table II.9).  These excise taxes apply in the 
same way to domestic and importe d products, including from Ukrain e, except in the case of tobacco 
products.  
 
 
  WT/REG121/6 
Page 12  
 
 Table II.9  
Overview of excise taxes applied to domestic production and imports, 2009 
HS Sub-Heading Brief Description of Products Rate  
(laris)a 
2203 Beer 0.2/litre 
220600 Other fermented beverages (for exam ple, cider, perry, mead) 2.5/ litre 
2207 Undenatured ethyl alcohol, alcoholic st rength by volume > 80% vol   1.3/ litre 
220860 Undenatured ethyl alcohol, alcoholic st rength by volume < 80% vol   1.5/ litre 
220830, 40, 50, 90  Spirits, liqueurs and other spirituous beverages. 2.5/ litre 
220820,70 Spirits obtained by distilling gr ape wine or grape marc 2.3/ litre 
240210   Cigars A (import) 0.90/stick 
 Cigars B (domestic) 0.70/stick 
  Cigarillos A (import) 1.0/20 stick 
 Cigarillos B (domestic) 0.80/20 sticks 
240220 Cigarettes A (with filter,  imported) 0.60/20 sticks 
 Cigarettes B (with filter, domestic) 0.40/20 sticks 
 Cigarettes A (without filter, imported) 0.15/20 sticks 
 Cigarettes B (without filter, domestic) 0.10/20 sticks 
2403 Other tobacco 20 /kilo 
2707 Oils and products from coal distillation 350-400/tonne 
2709 00   
271111 271121 Crude petroleum 80/1000 cubic metre 
2710 Refined petroleum products 150-400/tonne 
271112,13,14,19 Petroleum gases 120/tonne 
2902, 2905 Hydrocarbons, acyclic alcohols 400/tonne 
3403 Lubricating preparations 400/tonne 
3811-3814 Prepared additives for mineral oils, and other composite preparations 400/tonne 
 Export of scraps of ferrous and/or non ferrous metal 25/tonne 
8703 Motor vehicles  0.5-1.5 /per cubic 
centimetre  of engine depending on the age 
of the vehicle 
a The Lari is Georgia's currency and was valued at 1. 6 laris per US dollar in November 2008 (period average). 
 
Source:  Information provided by Georgia.  
 
4. Rules of origin 
27. The Agreement's disciplines on rules of origin  (Article 1) follow the Resolution on the  
CIS "Rules of Establishing the Country of Origin fo r Goods", which are common to all bilateral FTAs 
between CIS Members States.  The Resolution was approved in 1993, as amended and replaced by a 
new Decision (Box II.1).  This Decision was subseque ntly amended by a series of nine resolutions 
adopted during 2005-2008.  The origin of the goods  is confirmed upon submis sion of the appropriate 
certificate (form CT-1).  WT/REG121/6 
 Page 13 
 
 
 Box II.1:  Commonwealth of Independent States Rules of Origin  
The Commonwealth of Independent States (CIS) 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 States, 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 countr ies 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 exclusively 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 differe nt product and the slaughter of cattle do not constitute 
sufficient transformation or processing (Paragraph 2). 
 According to Paragraph 3, where raw materials, or ma terials which originate in one or more countries are 
subject afterwards to a stage-by-stage processing in other countries, are used in production of the final goods 
in one of the signatory States of 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 indicates three elements to define the substantial processing/transformation criterion:  
 
(i) A change in the tariff classi fication at the heading level.   
 
(ii) Specific conditions for manufacturing and processing operations are specified for a large number of 
products (mainly food and chemical products) in a List of Conditions annexed to the Rules; these 
conditions determine whether the goods can be cons idered to originate from the country where the 
operations took place (see Annex I).   
 
(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 th e price of finished products.  Va lue shall be calculated (a) for the 
materials imported on the basis of customs value of  these materials at the time of their importation 
into the country of production; and (b) for the finished products on the basis of the “ex-works” 
(“ex warehouse”) price of the seller. 
 
The Decision further requires the Par ties to produce a Certificate of Orig in (CT-1 form) or a declaration of 
origin of the goods to the customs bodies of the importing country in order to confirm the country of origin (Paragraph 10).  Such a document is issued in accordance with the national legislation of the exporting State. 
 
Source:  WTO document WT/REG82/5, 31 March 2003, and information provided by the Parties.  
 
 
28. In order to benefit from duty-free status, the goods must meet the rules of origin (see 
Box II.1);  they must be shipped directly from the territory of one of the Parties;  and they must be purchased directly from an enterprise or incorporated co mpany in one of the Parties.  This rule is not 
fulfilled when goods are purchased in one Party from a representative of a company which is not a 
resident of a Party.
6  In effect, these "direct purchase and supply" rules require that imports arrive 
directly from CIS states and are not transported outside the CIS region.    
                                                      
6 WTO document WT/ACC/UKR/65, 23 July 1999. WT/REG121/6 
Page 14  
 
 5. Export duties and charges 
29. Ukraine maintains a number of export taxes ma inly on animal products, grains and scrap 
metal (Table II.10).  Some of these export taxes are not  applicable to exports to Georgia as a result of 
the Agreement.  
Table II.10  
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 
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 Ja nuary 2008, Table 20(a), and informa tion provided by the authorities. 
 
C. REGULATORY PROVISIONS OF THE AGREEMENT  
1. Customs-related procedures  
30. The Agreement did not introduce any new customs- related procedures.  Article 8 states that 
customs procedures are to be based on the unified , nine-digit Commodity Nomenclature of Foreign 
Economic Activities (CN FEA), itself based upon the Harmonized Commodity Description and 
Coding System, as well as the Combined Tariffs a nd Statistics Nomenclature of the EEC.    
31. There have been no changes regarding trans it procedures as a result of the Agreement.  
However under Article 9, Contracting Parties ensure  free transit through their territory of goods 
originating from the customs area of the other Pa rty of from third countries and destined for the 
customs area of the other Party or for third countries.   
2. Standards and technical regulations 
32. The Agreement does not contain explicit provisi ons on technical regulations or on standards-
related matters, including sanitary or phyto-sanitary measures or regulations.   WT/REG121/6 
 Page 15 
 
 
 3. Anti-dumping, countervailing and safeguard measures 
33. No anti-dumping provisions are contained in th e Agreement. With respect to countervailing 
measures, under Article 3 the Parties maintain thei r right to the "restriction of import of goods, when 
the internal price on such a product is lower than  the world price as a result of implementation of 
governmental assistance programmes".   
34. No specific measures regarding safeguards are contained in the Agreement. Since 2003, 
Ukraine has introduced a series of safeguard measu res on imports, mostly based on minimum import 
prices.  These measures are applied to all trading pa rtners, including preferential trading partners.  The 
safeguard duty is applied in addition to the norma l customs duty;  however, one of the safeguard 
measures, on steel pipes, is a quota (Table II.11). 
Table II.11 
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. 
 
35. In March 2009, Ukraine notified the WTO of the introduction, as of 10 March 2009, of a 
surcharge of 13%7, on imports of certain products.  The lis t referred to in the initial regulation 
included a variety of products8, but according to the authorities the list was by the end of March 2009 
reduced to motor vehicles and refrigerators (HS tariff headings 8418, 8702, 8703, and 8704).  The 
surcharge applies in addition to the customs value of  the goods, before payment of internal taxes if 
any (e.g. VAT, excise duties);  thus for example if  the MFN tariff is 10%, the total duty paid on the 
import including the surcharge will amount to 23%.    
36. The surcharge applies to imports from all s ources except Ukraine's preferential trading 
partners, namely: CIS partners (including Georgia) ; the Former Yugoslav Republic of Macedonia; and 
Singapore.   
37. This import surcharge was justified by the au thorities as a measure applied for balance of 
payments purposes (import duty surcharge), under Art. XII of the GATT 1994 and under paragraph 9 
of the Understanding on the Balance-of-Payments Provisions of GATT 1994.     
                                                      
7 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”.    
8 Tariff headings 0202, 0203, 0206 - 0210, 0504 - 0506, 0509, 0511 (except item 0511 10 00 00), 0808, 
1601 - 1605, 1701, 1702 (exc ept for starch treacle in ite m 1702 30 99 00), 2204 - 2208, 2701, 42 03, 4303, 57, 
60 - 65, 6806, 6901, 7201, 7301, 7321, 8401, 8414, 8418, 8501, 8516, 8702, 8703, 8704.   WT/REG121/6 
Page 16  
 
 4. Subsidies, state-aid and competition 
38. 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 business practices, that are aimed at hindering or limit 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. 
D. G
ENERAL PROVISIONS OF THE AGREEMENT  
1. Exchange of information 
39. The Parties commit to exchange, on a regular basis, information about customs issues, 
including changes in customs tariffs;  and about fr ee trade agreements between the Parties and third 
countries (Articles 5 and 6).   
2. Exceptions 
40. Under Article 3, the Parties maintain their ri ght to implement economic measures considered 
necessary for the protection of their: national security ; trade in weapons; trade in nuclear materials; 
wartime or emergency measures; or fulfilment of  United Nations obligations.  The Agreement does 
not prevent parties from taking measures necessary to comply with other international agreements to 
which one of the Member State is or intends to become Party, if those agreements concern human 
health and life; animals and plants; the environmen t;  works of art, historical and archaeological 
valuables;  non-agricultural and intellectual property;  trade in gold, silver or other precious stones and metals; and the maintenance of irreplaceable natural resources.  
3. Accession and withdrawal 
41. The Agreement contains no specific provisions  on accession to the Agreement by third 
countries.  As provided for in Article 13, the Ag reement will be terminated six months following 
notification of willingness by one of the Parties. 
4. Institutional framework 
42. As prescribed by Article 12, the Parties in July 1997 were to establish a joint 
Georgian-Ukrainian "Bipartite Commission" to im plement the objectives of the Agreement and to 
strengthen trade and economic c ooperation between them.  The Commission, which was created in 
2002, is a standing advisory body which represents the Governments of the Parties in mutual economic relations and ensures the implementation of obligations de riving from the conclusion of 
bilateral agreements and arrangements.  The Co mmission can set up joint working groups when the 
need arises.  In the past, such groups have been  established on agriculture; on regional cooperation; on 
the energy sector; on industrial cooperation; on tr ansport; on privatization and investment; and on 
humanitarian cooperation.  Since its establishment,  five meetings of the Commission have taken 
place, the latest in February 2005.  Decisions of  the Commission are reflected in the Protocols. 
5. Dispute settlement 
43. Article 11 contains the Agreement's sole refe rence to dispute settlement.  It states that 
"Disputes between the Sides concerning interpretation or application of the Agreement's provisions  
will be settled through negotiations."  WT/REG121/6 
 Page 17 
 
 
 6. Relationship with other agreements concluded by the Parties 
44. Article 10 prescribes that "Nothing in the present agreement prevents the Sides from 
establishing relations, without violating objectives and te rms of the agreement, with countries that are 
not participants of the present agreement as well  as with their associations and international 
organizations".  Regional Trade Agreements to wh ich the parties are signatories (in addition to this 
Agreement) notified to the WTO as well as non-notified RTAs in force are listed in Table II.12.   
Table II.12 
Ukraine and Georgia:  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 
Armenia 18.12.96 Goods 2004 GATT Art. XXIV 
Azerbaijan 02.09.96 Goods 2008 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 
GEORGIA 
Turkey 01.11.08 Goods 2009 GATT Art. XXIV 
Turkmenistan 01.01.00 Goods 2001 GATT Art. XXIV 
Kazakhstan 16.07.99 Goods 2001 GATT Art. XXIV 
Armenia 11.11.98 Goods 2001 GATT Art. XXIV 
Azerbaijan 10.07.96  Goods 2001 GATT Art. XXIV 
CIS 30.12.94  Goods 1999 GATT Art. XXIV 
Russian Federation 10.05.94 Goods 2001 GATT Art. XXIV 
GUAM 10.12.03 Goods Not notified 
 
Source:  WTO Secretariat, RTA-IS Database. 
 
CIS: Commonwealth of Independent States GUAM: Georgia, Ukraine, Azerbaijan and Moldova 
 
  WT/REG121/6 
Page 18  
 
 ANNEX I 
 
 
Table AI.1  
Georgia's top exports to the worlda, average 1996-1997 and average 2006-07 
(Million US$)  
Tariff 
heading Commodity Description 1996-1997 2006-2007 
080222 Hazelnuts and filberts, fres h or dried, shelled 2.8 58.9 
170199 Refined sugar, in solid form, n.e.s., pure sucrose 0.1 23.8 
220110 Mineral and aerated waters not  sweetened or flavoured 11.2 24.5 
220210 Beverage waters, sweetened or flavoured 3.5 26.2 
220421 Grape wines n.e.s., fortified wine or must, pack < 2l 5.9 33.4 
220820 Spirits obtained by distilling grape wine, grape marc 1.1 35.3 
252310 Cement clinkers 0.1 12.8 
252329 Portland cement, other than white cement 0.1 10.8 
252390 Hydraulic cements except portland or aluminous 0.0 18.2 
260300 Copper ores and concentrates 10.3 79.4 
270900 Petroleum oils, oils from bituminous minerals, crude 10.6 26.8 
271000 Oils petroleum, bituminous, distillates, except crude 15.4 0.7 
271600 Electrical energy 12.5 9.6 
310230 Ammonium nitrate, including solution, in pack >10 kg 12.3 51.8 
710813 Gold, semi-manufactured forms, non-monetary .. 58.9 
720230 Ferro-silico-manganese 4.8 115.3 
720421 Waste or scrap, of stainless steel .. 7.2 
720429 Waste or scrap, of alloy st eel, other than stainless .. 17.7 
720449 Ferrous waste or scrap, n.e.s. .. 59.8 
740400 Copper/copper alloy waste or scrap .. 33.6 
760200 Waste or scrap, aluminium .. 15.0 
870323 Automobiles, spark ignition engine of 1500-3000 cc 0.3 42.2 
880211 Helicopters:  of an unladen weight not exceeding 2 000 kg .. 16.9 
880230 Aeroplanes and other aircraft, of an unladen weight exceeding 2,000 kg but not 
exceeding 15,000 kg .. 18.8 
880240 Fixed wing aircraft, unladen weight > 15,000 kg .. 9.6 
a 25 tariff sub-heading with largest exports in one of the two periods. n.e.s. Not elsewhere specified.  
Source:  UN Comtrade. 
 
   
 
    
 
     
 
    WT/REG121/6 
 Page 19 
 
 
 Table AI.2  
Ukraine's main exportsa 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 .. 
a 25 tariff sub-heading with largest exports in one of the two periods.  
.. Not available. 
Source:  UNSD Comtrade. WT/REG121/6 
Page 20  
 
 ANNEX II 
 
 
Table AII.1 
Ukraine:  MFN tariff heading averages at or above 20%, 2009, and corresponding averages in 1996 
HS 
heading  Description  1996a 
Basic 
% Average 
under 
Agreement 
2009 b 2009b 
MFN 
% 
1701 Cane or beet sugar and chemically pure sucrose, in solid form. 50.0 50.0 50.0 
2205 Vermouth and other wine of fresh grapes  flavoured with plants or aromatic 
substances. 20.0 0.0 32.3 
6807 Articles of asphalt or of similar material (for example, petroleum bitumen or coal 
tar pitch). 20.0 27.4 30.3 
8702 Motor vehicles for the transport of ten or more persons, including the driver. 17.0 0.0 25.1 
8703 Motor cars and other motor vehicles 20.0 0.0 23.0 
4204 Articles of leather or of composition leather,  of a kind used in machinery   40.0 0.0 22.5 
8704 Motor vehicles for the transport of goods. 19.0 0.0 20.3 
2208 Undenatured ethyl alcohol; spirits, liqueurs and other spirituous beverages. 350.0 0.0 20.2 
0410 Edible products of animal origin, not el sewhere specified or included. 30.0 0.0 20.0 
0501 Human hair, unworked, whether or not washed or scoured; waste of human hair. 5.0 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, with thei r feathers or down, feathers  15.0 0.0 20.0 
0506 Bones and horn-cores, unworked, defatted, simply prepared (but not cut to shape) 15.0 0.0 20.0 
0507 Ivory, tortoise-shell, whalebone and wh alebone hair, horns, antlers, hooves, nails, 
etc 15.0 0.0 20.0 
0508 Coral and similar materials, unworked or simply prepared but not otherwise 
worked;  5.0 0.0 20.0 
0705 Lettuce (Lactuca sativa) and chicory (Cichor ium spp.), fresh or chilled. 15.0 0.0 20.0 
0706 Carrots, turnips, salad beetroot, salsify, cel eriac, and similar edible roots, fresh or 
chilled. 30.0 0.0 20.0 
0708 Leguminous vegetables, shelled or unsh elled, fresh or ch illed. 30.0 0.0 20.0 
0812 Fruit and nuts, provisionally preserved, unsuitable in that state for immediate 
consumption. 20.0 0.0 20.0 
0814 Peel of citrus fruit or melons, fresh, frozen , dried or provisionally preserved  10.0 0.0 20.0 
1002 Rye 10.0 0.0 20.0 
1102 Cereal flours other than of wheat or meslin. 20.0 0.0 20.0 
1103 Cereal groats, meal and pellets. 10.0 0.0 20.0 
1105 Flour, meal, powder, flakes, granules and pellets of potatoes. 30.0 0.0 20.0 
1210 Hop cones, fresh or dried, whether or  not ground, powdered or in the form of 
pellets; lupulin. 30.0 0.0 20.0 
1213 Cereal straw and husks, unprepared, wh ether or not chopped, ground 5.0 0.0 20.0 
1501 Pig fat (including lard) and poultr y fat, other than that of heading 02.09 or 15.03. 30.0 0.0 20.0 
1503 Lard stearin, lard oil, oleostearin, oleo-oil and tallow oil 30.0 0.0 20.0 
1522 Degras; residues resulting from the treatme nt of fatty substances  10.0 0.0 20.0 
1903 Tapioca and substitutes therefor pr epared from starch 30.0 0.0 20.0 
2006 Vegetables, fruit, nuts, fruit-peel and other parts of plants, preserved by sugar  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 
2303 Residues of starch manufacture and simila r residues, bagasse and other waste of 
sugar 5.0 0.0 20.0 
2305 Oil-cake and other solid residues, whether or not  ground or in the form of pellets 5.0 0.0 20.0 
2307 Wine lees; argol. 30.0 0.0 20.0 
2308 Vegetable materials and vegeta ble waste, vegetable residues and by-products 5.0 0.0 20.0 
2403 Other manufactured tobacco and manufactur ed tobacco substitutes;  55.0 0.0 20.0 
4205 Other articles of leather or of  composition leather. 40.0 0.0 20.0 
a For the calculation of MFN averages  specific rates are excluded and the ad valorem  part of alternate rates are included. 
b For the calculation of MFN averages speci fic rates without AVEs are excluded and the ad valorem  part of alternate rates are 
 included. 
Source:   WTO Secretariat calculations ba sed on data provided by Ukraine. 
  WT/REG121/6 
 Page 21 
 
 
 ANNEX III 
 
Indicators of trade liberalization under the Georgia-Ukraine FTA  
  
1. A comparison between the scheduled elimination of tariffs applied to the Parties' mutual 
imports and the duty rates applied by Georgia and Ukraine to MFN imports is shown in Tables AIII.1 
(Georgia) and AIII.2 (Ukraine) below, by agricultu ral, non-agricultural and all products.  The most 
recent applied MFN duty rates that are available in the WTO Integrated database serve as a basis of 
comparison. 
2. In 2009, for the 14.2% of tariff lines where duties applied, Georgia had an average MFN 
tariff rate of 11.7%, as presented in Table AIII.1.  The remaining 85.8% of Georgia's tariff lines are 
duty-free at an MFN level.  Its (unweighted) average MFN rate (2009) is 1.5% on all goods, with a 
higher average tariff applied to agricultural goods th an to non-agricultural products.  98.1% of MFN 
tariffs on non-agricultural products are duty-free, while  37.2% of agricultural tariffs are duty-free.  In 
comparison, the tariff applied by Georgia to Ukraine is entirely duty-free. 
Table AIII.1 
Georgia:  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 2009 1.5 11.7 85.8 6.9 11.6 37.2 0.2 12.0 98.1 
Ukraine 2009 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 estimates based on data provided by Georgia.  
3. Ukraine  has an (unweighted) average MFN rate of 4.9% on all goods in 2009, including the 
36.4% of tariff lines that are duty free at an MFN leve l (Table AIII.2).  The average applied tariff for 
agricultural goods (9.8%) is nearly three times that  of non-agricultural goods (3.8%).  Over 42% of 
non-agricultural products enjoy MFN duty-free tari ffs, while 12.1% of agricultural products are 
duty-free.  In comparison, the tariff applied by  Ukraine to Georgia is nearly all duty-free. 
Table AIII.2 
Ukraine:  Indicators of tariff rate s applied to MFN and Georgian imports 
(Per cent) 
All products  Agricultural products  Non-agricultural products  
Average 
applied tariff  Average 
applied tariff  Average 
applied tariff  Origin 
of 
goods  Year  
Overall 
 On 
dutiablea Share 
of duty-
free 
tariff 
lines  Overall
 On 
dutiablea Share of
duty-free 
tariff 
lines  Overall 
 On 
dutiablea Share of 
duty-free 
tariff 
lines  
MFN 2009 4.9 7.8 36.4 9.8 11.2 12.1 3.8 6.5 42.3 
Georgia 2009 0.1 18.0 99.7 0.2 24.1 99.2 0.0 12.8 99.8 
a "On dutiable" excludes duty-free tariff lines. 
Source:   WTO Secretariat calculations ba sed on data provided by Ukraine. WT/REG121/6 
Page 22  
 
 4. A presentation of bilateral trade between the Pa rties is contained in Annex Tables AIII.3 and 
AIII.4.    
Table AIII.3 
Ukraine main exports to Georgiaa, average 1996-97 and 2006-07, and corres ponding Georgian MFN tariffs  
Export value 
US$ million Tariff 
sub-
heading Commodity Description Georgia's 
average MFN 
tariff 2009 1996-1997 2006-2007 
040210 Sweetened cream  6 0.2 3.5 
100190 Wheat 0 0.7 1.5 
100590 Corn  12 .. 4.7 
110100 Wheat or meslin flour. 12 1.4 5.9 
151211 Crude sunflower oil 0 0.1  10.2 
151219 - Other 0 0.0 13.1 
170199 Sugar 12 9.9 0.4 
170490 - Other 12 0.2 6.3 
180690 Cocoa preparations 0 0.0 11.6 
210690 Food preparations contai ning dairy products 0 0.0 5.1 
220710 - Undenatured ethyl alcohol of an alcoholic strength > 80% vol €3/lit 78.3 3.8 
220860 Vodka €5/%vol/HL 0.5 1.6 
220870 Liqueurs and cordials €5/%vol/HL 0.5 0.0 
220890 Other €5/%vol/HL 0.5 0.0 
240220 Cigarettes containi ng tobacco 12 0.3 21.3 
240310 Smoking tobacco  12 .. 7.1 
250100 Salt 12 0.8 1.7 
270400 Coke and semi-coke of coal, of lignite or of peat 0 0.4 10.2 
271320 Petroleum bitumen 0 .. 2.7 
300410 Medicaments containi ng penicillins  0 0.4 0.2 
300490 Other medicaments 0 1.1 1.1 
300680 Waste pharmaceuticals 0 1.8 2.6 
390210 Polypropylene 0 0.5 0.1 
401110 New tyres f a kind used on motor cars  0 2.6 1.5 
401120 - Of a kind used on buses or lorries 0 1.8 1.5 
481810  Toilet paper 0 0.4 1.5 
690220 Bricks containing by weight more  than 50% of alumina   0 0.3 0.4 
720719 Semi-finished iron and steel products 0 0.4 2.3 
720720 - Containing by weight 0.25% or more of carbon 0 0.4 1.0 
721391 - Of circular cross-section measuri ng less than 14 mm in diameter 0 0.1 9.9 
721420 Steel bars containing indentations, ribs, grooves or other  0 0.3 47.8 
721631 Steel in U sections 0 0.1 2.5 
722820 Bars and rods, of silic o-manganese steel 0 0.4 0.3 
730210 Rails 0 0.5 3.8 
730511 Longitudinally submerged arc welded steel 0 .. 4.9 
730630 Other, welded, of circular cross-sect ion, of iron or non- Alloy steel 0 0.0 2.7 
732611 Grinding balls and similar articles for mills 0 0.4 1.2 
831190 Wire and rods, including parts 0 0.5 .. 
843780 Other machinery 0 0.4 0.0 
850423 Agricultural machinery 0 0.6 1.8 
852610 Radar apparatus 0 .. 6.8 
854459 Electric connectors 0 0.1 4.7 
870210 Motor vehicles for over 10 persons  0 .. 5.9 
870423 Motor vehicles for the transpor t of goods, exceeding 20 tonnes 0 .. 9.8 
870590 Special purpose vehicles 0 .. 2.7 
.. Not available. 
a 25 tariff sub-heading with largest exports in one of the two periods. 
Source:  UNSD-COMTRADE;  WTO estimates based on data provided by Georgia to the WTO-IDB. 
 
 
 
    WT/REG121/6 
 Page 23 
 
 
 Table AIII.4  
Georgia's main exports to Ukrainea, average 1996-97 and 2006-07, and corres ponding Ukrainian MFN tariffs  
Export value 
US$ million Tariff 
sub-
heading Commodity Description Ukraine's average MFN 
tariff 2009 1996-
1997 2006-
2007 
070990 - Other 14.4 .. 0.5 
080222 -- Shelled 0.0 0.1 1.9 
080520 - Mandarins, clementines, wilkings a nd similar citrus hybrids 0.0 1.7 3.1 
220110 - Mineral waters and aerated waters 10.0 0.5 10.7 
220421 Sparkling wine in containers holding 2 litres or less 5.4 0.4 12.6 
220820 - Spirits obtained by distilling grap e wine or grape marc 14.4 0.2 26.8 
720221 -- Containing by weight more than 55% of silicon 3.0 .. 2.7 
720230 - Ferro-silico-manganese 3.0 .. 7.8 
860110 - Powered from an external source of electricity 0.0 .. 4.6 
870323 -- Of a cylinder capacity betw een 1,500 cc and 3,000 cc 22.6 0.0 1.0 
a 25 tariff sub-heading with largest exports in one of the two periods. 
.. Not available. 
Note: For the calculation of MFN averages, sp ecific rates without AVEs are excluded and the ad valorem  part of alternate 
rates are included. 
__________