WORLD TRADE  
ORGANIZATION  WT/REG248/2 
24 November 2009 
 (09-5872) 
Committee on Regional Trade Agreements Original:   English 
  
 
FREE TRADE AGREEMENT BETWEEN UKRAINE AND THE FORMER YUGOSLAV 
REPUBLIC OF MACEDONIA  
(GOODS) 
 
Questions and Replies
 
 
  The following communication, dated 12 November 2009, is being circulated at the request of 
the delegations of Ukraine and the Fo rmer Yugoslav Republic of Macedonia. 
 
 This document reproduces the questions addressed to the Parties and the responses submitted. 
 
_______________ 
 
 
Questions from the Delegation of Argentina
 
 
1. Paragraphs 21 and 26 of the Secretariat report indicate that the Free Trade Agreement 
between Ukraine and Macedonia does not provide for liberalization with respect to agricultural 
products for either of the parties. 
 Could the parties provide information for a rel evant period (e.g. 2000-2005) on trends in 
bilateral trade for the tariff lines corresponding to Sections I to IV of the Harmonized System?  
 
 Information on trends in bilateral trade for the tariff lines corresponding to Sections I to IV of 
the Harmonized System are provided in Tables I-II,  annexed hereto.  Please refer to Annex I. 
 
It should also be noted that under the provisi ons of this Agreement and the Decrees of the 
Cabinet of Ministers of Ukraine the lists of pr oducts and the volume of quotas on goods imported to 
Ukraine, imports of which from the Republic of Ma cedonia are subject to licensing under the tariff 
quota, are approved annually since 2002. 
 These products are referred to 22 commodity groups under the UKTZED (Ukrainian 
Classification of Goods for Foreign Economic Activ ity based on Harmonized System).  During 2002 
and 2003 only 2 applications  were received for import licenses for natural grape wine (UKTZED code 
- 2204) in the volumes that is 9% of the quota (a nnual quota – 40,000 thousand litres, used share – 
3,500 thousand litres each year). 
 
During 2004 and 2005 there were no applications  for licenses to import to Ukraine of goods 
within a specified tariff quota.  
 
In 2006, among the goods, import of which from the Republic of Macedonia was under 
assignment of quotas, the applications were recei ved only for tobacco (UKTZED code - 2401 10) in 
the volumes that constituted 3.03% of quota restri ctions (quota - 10000 tons, the use - 302.6 tons). 
 WT/REG248/2 
Page 2  
 
  During 2007 and 2008 the volume of licenses for import to Ukraine of grape wine was 
smaller than in 2002 and 2003, and amounted to  368,050 thousand litres a nd 1,000 thousand litres 
respectively, or 0.92% and 2.5% of the installed quota restrictions.  However, in 2008 the application 
for a license to import into Ukraine plants, plan t parts, seeds and fruits (UKTZED code - 1211 90) 
was received in the volume of 440 tons with quota of 500 tons (88%).  
 
Thus, the data on the use of tariff quotas on imports from the Republic of Macedonia in 
2002-2008 shows extremely small and irregular usag e of quotas provided under the Agreement.  
 
2. Article 10 of the Agreement states that:  "P rovisions of this Chapter shall apply to 
agricultural products originating in one of the Contracting Parties.  The term "agricultural 
products" for purposes of this Chapter will refer to products falling within Chapters 1 to 24 of 
the Harmonized Commodity Description and Coding  System, as well as to products listed in 
Annex 1 to this Agreement". 
Since Chapter 3 of the Harmonized System relates to fish and fish products, and 
Annex 1 to the Agreement on Agriculture states that the Agreement covers Chapters 1 to 24 of 
the Harmonized System less fish and fish products. 
 Could the parties explain why the Free Trade Agreement between Ukraine and 
Macedonia includes fish products as agricultural products? 
 
Taking into consideration that the Free Trad e Agreement between the Republic of Macedonia 
and Ukraine was signed and ratified in 2001, be fore Ukraine's accession to WTO, the relevant 
provisions of the legislation of Ukraine are reflected in this Agreement. 
 In accordance with th e Law of Ukraine № 1877-IV "On State Support of Agriculture of 
Ukraine" as of 24 June 2004 the agricultural pr oducts (agricultural commodities) - are goods 
mentioned in Groups 1-24 of the UKTZED accordi ng to the Law of Ukraine “On Customs Tariff of 
Ukraine”.  
 Furthermore, the Law of Ukraine № 168/97 as of 3 April 1997 "On value added tax" 
determines that the agricultural products – are produc ts that are produced as a result of activity in the 
field of agriculture, forestry or fishing. 
 
Questions from the Delegation of Chinese Taipei
 
 Trade Environment
 
 
3. According to paragraph 9 of the WTO Secretariat’s Factual Presentation, the 
FTA between Ukraine and the Former Yugoslav Republic of Macedonia was signed on 
18 January 2001 and entered into force on 15 July 2001.  Could the Parties provide more details 
regarding the impact of this FTA on trade and the economic structure of the Parties since the 
Agreement entered into effect? Does the Agreemen t enhance foreign investment in both Parties 
or not? 
 During 2004-2008 Ukraine was among the twenty countries – largest trade partners of 
Macedonia, and according to the indexes of export, Ukraine is among the leaders. 
 
 Together with that, it should be noted that establishment of the free trade area did not give 
expected results as average rates of growth of bilateral commodity turnover with Macedonia in 
2000-2008 were lower than the rates of gr owth of turnover with other countries. 
  WT/REG248/2 
 Page 3 
 
 
   The main article of Ukrainian exports was and remains Group 72 – Ferrous metals (according 
to the latest data – 70% of total export).   The main article of imports from Macedonia until 2007 was Group 24 – tobacco (77% of total imports).  New groups of commodities appear fro m 2007, such as Group 84 – boilers, machines, 
apparatus;  Group 85 – electric ma chines and Group 72 – ferrous metals. 
  The index of specific weight of Ukrainian - Ma cedonian trade in the foreign trade of Ukraine 
in 2008 is 0,13%, as of January–June of 2009 – 0, 09%.  Taking into consideration the specified 
indexes, the lack of substantial impact of the Free Trade Agreement on the structure of the economy 
of Ukraine can be affirmed. 
 
 As regards foreign investment it should be noted that the investment cooperation between 
Ukraine and Macedonia is conducted on the basis of the Agreement on Promotion and Mutual Protection of Investments between the G overnment of Ukraine and the Government of 
Macedonia signed on 2 March 1998.  Details concer ning investment between the two countries are 
provided below. 
 
Direct foreign investments from Macedonia to Ukraine
 
 
 As of 1 July 2009 the economy of Ukrain e attracted 2.14 million of investments from 
Macedonia.  There are 14 enterprises within the Macedonian capital.   
 
The dynamics of direct foreign investments from Macedonia to  the economy of Ukraine from 2001 till the first half of 2009  
 01.01.02 01.01.03 01.01.04 01.01.05 01.01.06 01.01.07 01.01.08 01.01.09 01.07.09 
Value of direct 
investments 1,04 1,14 1,08 1,17 1,15 1,17 2,21 2,13 2,14 
Dynamics -0,11 0,1 -0,06 0,09 -0,02 0,05 0,02 -0,08 0,01 
Quantity of 
enterprises 6 6 8 9 11 11 12 15 14 
Dynamics - - 2 1 2 - 1 3 -1 
 
 The largest volume of investments from Macedoni a were invested in the field of industry – 
US$1,002.5 (46.8% of the total investments from Macedonia) as of 1 July 2009. 
 The income of investments in industry was as follows: 
 
As of 01.01.2009 As of 01.07.2009 
Industry Volume of investments, 
thousands US$ in % to 
total Volume of investments, 
thousands US$ in % to 
total 
Total value of investments in industry, including: 999,9 46,9 1002,5 46,8 
Dynamics - - 2,6 - 
Manufacturing industry: 999,9 46,9 1002,5 46,8 
Dynamics  - - 2,6 - 
Wood processing and manufacturing of wood 
products, except furniture 711,5 33,3 713,3 33,3 
Dynamics  - - 1,8 - 
 
 During the first half of 2009 investments to industry increased by US$2,600.  
 
 As of 1 July 2009 US$74,400 (3.5%) have been invested to the construction industry.  Thus during the first half of 2009 the growth of investments in this area of economic activity amounted to US$4,900.   WT/REG248/2 
Page 4  
 
  Direct investments from Ukraine to Macedonia
 
 
As of 1 January 2008 Ukraine invested US $290,000 in the economy of Macedonia.  One 
enterprise with Ukrainian investments works on the territory of Macedonia. 
 
The dynamics of direct foreign investments from  Ukraine to Macedonia's economy in 2001–2008 
 01.01.02 01.01.03 01.01.04 01.01.05 01.01.06 01.01.07 01.01.08 
Volume of direct 
investments - - 0,25 0,27 0,24 0,26 0,29 
Dynamics - - 0,25 0,02 -0,03 0,02 0,03 
In % to total volume - - 0,2 0,1 0,1 0,1 0,0 
Quantity of enterprises - - 1 1 1 2 1 
Dynamics - - 1 - - 1 -1 
 
 Investments from Ukraine to Macedonia are full y directed to the areas of financial activity – 
US$293,800 (100%).  
 
 Due to the fact that, according to the data fro m the State Committee of Statistics of Ukraine, 
direct investments from Ukraine to Macedonia in the first half of 2009 were received from no more 
than two entities, information on their volume is  confidential under the law of Ukraine "On State 
Statistics" .  
Safeguard Mechanism
 
 
4. As regards “general safeguard”, paragraph 43 on page 18 of the Factual Presentation 
and Article 19b) of this Agreement state that safeguard measures can be adopted when imports may cause or threaten to cause “serious disrupt ions to any related sector of the economy or 
difficulties which could bring about serious deteri oration of the economic situation in the region 
of the Contracting Parties.” Could the Contract ing Parties clarify whether these conditions are 
only applicable to bilateral safeguard me asures, and provide more details about these 
conditions?  
 Ukraine applies the safeguard measures in accordance with the Law "On Application of 
Safeguard Measures against Imports to Ukraine", as of  22 December 1998, No. 332-XIV, which is in 
conformity with provisions of the WTO Agreem ent on Safeguard Measures.  This law establishes 
general conditions and requirements concerning conduction of the investigation procedure and 
application of safeguard measures regardless of the country of export.  
   WT/REG248/2
 Page 5ANNEX I 
 
Table I Exports of products from Section I to IV of Harmoniz ed System from Ukraine to the Republic of Macedonia  
2000 2001 2002 2003 2004 2005 
Tariff lines Description Quantity 
(kg) Value 
(US$)  Quantity 
(kg) Value 
(US$)  Quantity 
(kg) Value 
(US$)  Quantity 
(kg) Value 
(US$)  Quantity 
(kg) Value 
(US$)  Quantity 
(kg) Value 
(US$)  
0200000000 Meat and edible meat offal - 100,40 - - 54000 122,22 - - - - - - 
0202000000 Meat of bovine animals, frozen. 74000,000 100,40 - - 54000 122,22 - - - - - - 
0202300000 Boneless 74000,00 
0 100,40 - - 54000 122,22 - - - - - - 
040000000 Dairy produce; birds' eggs; natural honey; edible 
products of animal origin, not elsewhere specified or 
included  110,90 - 207,10 - - - - - - - - 
040200000 Milk and cream, concentrated or containing added 
sugar or other sweetening matter. 80000,000 110,90 122000,000 207,10 - - - - - - - - 
040210000 In powder, granules or other solid forms, of a fat 
content, by weight, not exceeding 1.5% 80000,000 110,90 60000,000 99,50 - - - - - - - - 
040221000 Not containing added sugar or other sweetening 
matter - - 62000,000 107,60 - - - - - - - - 
0700000000 Edible vegetables and certain roots and tubers - - - 3,20 29750 9,5 - - - - 5289 1,0578 
0708000000 Leguminous vegetables, sh elled or unshelled, fresh 
or chilled. - - - - 20000 5,6 - - - - - - 
0708200000 Beans (Vigna spp., Phaseolus spp.) - - - - 20000 5,6 - - - - - - 
0713000000 Dried leguminous vegeta bles, shelled, whether or 
not skinned or split - - 10000.000 3.20 9750 3,9 - - - - 5289 1,0578 
0713330000 Kidney beans, including white pea beans (Phaseolus 
vulgaris) - - 10000.000 3.20 9750 3,9 - - - - 5289 1,0578 
0800000000 Edible fruit and nuts; peel of citrus fruit or melons - 1,73 - 39,68 101923,5 93,69 66722 154,03 45337 84,98 206283 176,38718 
0802000000 Other nuts, fresh or drie d, whether or not shelled or 
peeled - - 35000,000 27,58 101923,5 93,69 61332 147,6 41057 77,65 175673 131,59287 
0802310000 In shell - - 35000.000 27.58 80000 40 - - 5000 1,79 152223 85,9431 
0802320000 Shelled - - - - 21923,5 53,69 61332 147,6 36057 75,86 23450 45,64977 
0813000000 Fruit, dried, other than that of headings 08.01 to 
08.06; mixtures of nuts or dried fruits of this Chapter 1368,000 1,73 6525,000 12,10 - - 5390 6,43 4280 7,33 30610 44,79431 
0813200000 Prunes - - - - - - - - - - 10010 7,49299 
0813400000 Other fruit 1368,000 1,73 6525,000 12,10 - - 5390 6,43 4280 7,33 20600 37,30132 
1200000000 Oil seeds and oleaginous fruits; miscellaneous 
grains, seeds and fruit; industrial or medicinal plants; straw and fodder - 77,58 - 27,17 39889 16,33 93520 71,35 330541 279,03 175162 175,14181 
1206000000 Sunflower seeds, whether or not broken - - - - - - - - 24000 7,36 - - 
1207000000 Other oil seeds and oleaginous fruits, whether or not 
broken - - - - - - - - 200000 166,54 41693 41,09319 
1207990000 Other - - - - - - - - 200000 166,54 41693 41,09319 
1209000000 Seeds, fruit and spores, of a kind used for sowing 19954,000 12,24 - - 20000 3,65 8252 5,76 40975 31,79 40960 26,540 5 
1209230000 Fescue seed - - - - - - 200 0,17 - - - - 
1209250000 Rye grass (Lolium multiflorum Lam., Lolium 
perenne L.) seed 19954,000 12,24 - - - - 6500 4,73 - - - - 
Table I (Cont'd) 
  
  WT/REG248/2 
Page 6 2000 2001 2002 2003 2004 2005 
Tariff lines Description Quantity 
(kg) Value 
(US$)  Quantity 
(kg) Value 
(US$)  Quantity 
(kg) Value 
(US$)  Quantity 
(kg) Value 
(US$)  Quantity 
(kg) Value 
(US$)  Quantity 
(kg) Value 
(US$)  
1209260000 Timothy grass seed - - - - - - 200 0,15 - - - - 
209290000 Other - - -- - 20000 3,65 200 0,13 - - - - 
1209910000 Vegetable seeds - - - - - - - - 20000 15 21020 17,5405 
1209990000 Other - - - - - - 1152 0,58 20975 16,79 19940 9 
1211000000 Plants and parts of plants (including seeds and 
fruits), of a kind used primarily in perfumery, in 
pharmacy or for insecticidal, fungicidal or similar 
purposes, fresh or dried, whether or not cut, crushed or powdered 67818,000 65,34 36976,000 27,17 19889 12,68 65445 62,02 65566 73,34 92509 107,50812 
1211900000  Other 67818,000 65,34 36976,000 27,17 19889 12,68 65445 62,02 65566 73,34 92509 107,50812 
1214000000 Swedes, mangolds, fodder roots, hay, lucerne 
(alfalfa), clover, sainfoin , forage kale, lupines, 
vetches and similar forage  products, whether or not 
in the form of pellets - - - - - - 19823 3,57 - - - - 
1214900000 Other - - - - - - 19823 3,57 - - - - 
2200000000 Beverages, spirits and vine gar - - - - - - - - - - 19117 35,46033 
2208000000 Undenatured ethyl alcohol  of an alcoholic strength 
by volume of less than 80% vol; spirits, liqueurs and 
other spirituous beverages - - - - - - - - - - 19117 35,46033 
2208600000 Vodka - - - - - - - - - - 16925 32,66995 
2208900000 Other - - - - - - - - - - 2192 2,79038 
2400000000 Tobacco and manufactured tobacco subs titutes - - - - 80 1,09 - - 272160 273,19 189000 205,30707 
2401000000 Unmanufactured tobacco; tobacco refuse - - - - - - - - 272160 273,19 30240 32,49388 
2401300000 Tobacco refuse - - - - - - - - 272160 273,19 30240 32,49388 
2403000000 Other manufactured tobacco and manufactured 
tobacco substitutes; "homogenized" or "reconstituted" tobacco; tobacco extracts and 
essences - - - - 80 1,09 - - - - 158760 172,81319 
2403990000 Other - - - - 80 1,09 - - - - 158760 172,81319 
 
 
 
  
 
   
 
   
   WT/REG248/2
 Page 7Table II 
Imports of products from Section I to IV of Harmoniz ed System from the Republic of Macedonia to Ukraine  
  2000 2001 2002 2003 2004 2005 
Tariff lines Description Quantity (kg)  Value 
(US$)  Quantity (kg)  Value 
(US$)  Quantity 
(kg) Value 
(US$)  Quantity 
(kg) Value 
(US$)  Quantity 
(kg) Value 
(US$)  Quantity 
(kg) Value (US$)  
0800000000 Edible fruit and nuts; 
peel of citrus fruit or 
melons - - - - - - - - - - 35831 14,82978 
0806000000 Grapes, fresh or dried - - - - - - - - - - 7436 2,91434 
0806100000 - Fresh - - - - - - - - - - 7436 2,91434 
0806101000 - - Table grapes - - - - - - - - - - 7436 2,91434 
0809000000 Apricots, cherries, 
peaches (including 
nectarins), plums and sloes, fresh - - - - - - - - - - 18300 9,15 
0809300000 - Peaches, including 
nectarines - - - - - - -- - - - 18300 9,15 
0809309000 - - Other - - - - - - - - - - 18300 9,15 
0810000000 Other fruit, fresh - - - - - - - - - - 10095 2,76544 
0810900000 Other - - - - - - - - - - 10095 2,76544 
810908500 - - Other - - - - - - - - - - 10095 2,76544 
0900000000 Coffee, tea, maté and 
spices - - - - - - - - - - 29982 11,9928 
0909000000 Seeds of anise, badian, 
fennel, coriander, cumin or caraway; juniper 
berries - - - - - - - - - - 29982 11,9928 
0909500000 Seeds of fennel; juniper 
berries - - - - - - - - - - 29982 11,9928 
1200000000 Oil seeds and oleaginous 
fruits; miscellaneous 
grains, seeds and fruits; 
industrial or medicinal plants; straw and fodder - 31,04 - 33,04 - - - - - - 10821 4,3284 
1211000000 Plants and parts of plants 
(including seeds and 
fruits), of a kind used 
primarily in perfumery, in pharmacy or for 
insectidal, fungicidal or 
similar purposes, fresh or dried, whether or not 
cut, crushed or 
powdered 30895,000 31,04 10836,800 33,04 - - - - - - 10821 4,3284 
1211900000 other 30895,000 31,04 10836,800 33,04 - - - - - - 10821 4,3284 
2100000000 Miscellaneous edible 
preparations - - - - 63 1,04 - - - -   
Table II (Cont'd)  
  WT/REG248/2 
Page 8   2000 2001 2002 2003 2004 2005 
Tariff lines Description Quantity (kg)  Value 
(US$)  Quantity (kg)  Value 
(US$)  Quantity 
(kg) Value 
(US$)  Quantity 
(kg) Value 
(US$)  Quantity 
(kg) Value 
(US$)  Quantity 
(kg) Value (US$)  
2106000000 Food preparations not 
elsewhere specified or included - - - - 63 1,04 - - - - - - 
2106900000 other - - - - 63 1,04 - - - - - - 
2200000000 Beverages, spirits and 
vinegar - 105,47 - 47,62 914439 120,86 722255 276,94 225025 83,83 1798 3,67399 
2204000000 Wine of fresh grapes, 
including fortified 
wines; grape must other than that of 
heading 2009 157184,000 105,47 402742,000 47,61 914439 120,86 722255 276,94 225025 83,83 1798 3,67399 
2204210000 In containers holding 2 
liters or less - - 354,000 0.11 45 0,07 630 1,17 585 1,3 1798 3,67399 
2204300000 Other grape must 157184,000 105,47 402388,000 47,5 914394 120,79 21899 5,72 - - - - 
2208000000 Undenatured ethyl 
alcohol of an alcoholic 
strength by volume of 
less than 80% vol; spirits, liqueurs and 
other spirituous 
beverages - - 9,800 0.01 - - - - - - - - 
2208900000 Other - - 9,800 0.01 - - - - - - - - 
2400000000 Tobacco and 
manufactured tobacco 
substitutes - 909,96 - 914,47 8332 27,92 365962 624,17 402316 918,62 750557 1789,69065 
2401000000 Unmanufactured 
tobacco; tobacco refuse 349560,000 909,96 251677 914,47 8332 27,92 365962 624,17 402316 918,62 750557 1789,69065 
2401100000 Tobacco, not 
stemmed/stripped 190078,000 637,44 251677 914,47 8332 27,92 34501 174,65 304697 756,56 750557 1789,69065 
2401200000 Tobacco, partly or 
wholly 
stemmed/stripped 156996,000 263,90 - - - - 331461 449,52 97619 162,06 - - 
2401300000 Tobacco refuse 2486,000 8,62 - - - - - - - - - - 
 
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