Source: Carnegie
For Immediate Release: April 10, 2003
Contact: Jayne Brady, 202-939-2372, jbrady@ceip.org
Recommends Entry to World Trade Organization by 2004
A trade policy for Ukraine should be its "predominant economic and international policy priority", according to a new Carnegie Endowment for International Peace report, Foreign Trade Policy Strategy for Ukraine. On the heels of a successful transition to a market economy and strong export expansion, Ukraine needs "trade rather than aid" to accomplish further growth, according to the author, Anders Åslund, a Carnegie senior associate.
Åslund says that surging exports are the key to Ukraine's continued economic growth and access to foreign markets is the key issue in the country's economic future. His report outlines a three-part strategy for Ukraine's foreign trade policy. First, obtain swift entry to the World Trade Organization (WTO), with "a realistic but ambitious target" of 2004. Once the country has joined the WTO, it should improve market access by concluding free trade agreements with the 11 Commonwealth of Independent States countries, the European Union (EU), the United States and other key countries. And finally, Ukraine must persuade the EU and the US to declare Ukraine a market economy-which he notes it already is-with free prices, small subsidies, few trade quotas and low import tariffs. He notes that Ukraine is subject to "extreme trade discrimination" from the EU and suffers badly.
Drawing on meetings with a wide range of top Ukrainian and international government officials, businessmen, non-government organizations and academics, Åslund explores current trade agreement limitations, barriers to improving trade, and issues with export products.
Åslund discusses the benefits of finalizing entry into the WTO and how it would provide a foundation for all other trade agreements. He provides analysis of Ukraine's current export markets and the need to supply big markets in its own "neighborhood." He concludes that export positioning in world markets would ensure greater economic stability and growth if Ukraine is given equal trade status. The report was prepared for the United Nations Development Program.
Anders Åslund is a leading specialist on post-communist economic transformation. A senior associate in the Carnegie Endowment's Russian and Eurasian Program, he has served as senior economic advisor to the governments of Russia, Ukraine, and Kyrgyzstan.
The full report is available only the web at: www.ceip.org/russia.
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