LOGO
Ukraine’s
membership in the
WTO: advantages
and disadvantages
The reporter: Tania Marchenko,
the Ukrainian academy of banking, Sumy,
3-year student of banking
Research supervisor: D.L. Tsiganyuk
Language advisor: O.I. Leshchenko
STRUCTURE
Background information about the WTO
Necessity of Ukraine’s entering the union
Predicted advantages and disadvantages
Comparison of expectations and reality
Our conclusions
Background information
about the WTO
 Formation: January 1, 1995
 Headquarters: Geneva,
Switzerland
 Membership: 153 states
 Official languages: English,
French, Spanish
 Director-General:Pascal
Lamy
 Website:
www.wto.int
Background information
about the WTO
Ukraine became
the 152-nd member
country of the WTO
on May 16, 2008
Necessity of Ukraine’s
entering the union
The European Union emphasizes on higher
possibility of entering its community only for
those countries which are members of the WTO;
It provides Ukraine with the first integration step
– creation of free trade area with the EU;
The WTO can carry out the functions of
international economic regulator
Necessity of Ukraine’s entering
the union
The WTO is absolutely new business sphere,
business culture, and new philosophy;
The WTO membership opens new markets for
the Ukrainian products;
Ukraine's WTO accession will help to reduce the
cost of critical imports from the WTO Members.
Predicted advantages and
disadvantages
ADVANTAGES
Access to the international trade dispute
resolution mechanism
Conducting international trade and
business
Ukraine gains the status of a rightful
participant of international trade
ADVANTAGES
Import sphere
Market of services
Bank services
Insurance sector
Branch of communication and information
Status of member of the WTO will help
Ukraine to defend its trade interests
better in the global arena
DISADVANTAGES
Increased imports, which could cause
reduction in industrial output, higher
unemployment and social tension
After entering the WTO Ukraine will be
forced to reduce customstariffss in
particular on resources
DISADVANTAGES
The rules of the WTO regulate the terms of
foreign trade only, here the WTO leaves
freedom of actions of country-members in the
questions of providing guard of health and
environment.
Insurance sector
Comparison of
expectations and reality
Table1. Main macroeconomic indicators of
Ukraine in 2004–2010 (growth rates in per cent
relative to the same period of the previous year)
2004
2005
2006
2007
2008
2009
2010
Real growth of GDP
112.1
102.6
107.1
107.6
106.3
84.9
104.2
Industrial production
112.5
103.1
106.2
110.2
96.9
108.8
109.7
Investments into basic
capital
Direct foreign investments
128.0
101.9
119.0
129.8
97.4
73.1
102.9
170.3
348.2
60.1
168.1
77.9
51.6
111.6
Exports
142.6
107.5
113.2
127.4
135.9
62.5
127.9
Imports
131.3
120.4
122.0
135.4
141.1
55
130.8
Turnover of retail trade ( of
legal entities )
121.9
123.4
126.4
129.5
117.9
95.3
111.7
Real growth of GDP, %
120
112.1
107.1
106.3
104.2
100
102.6
107.6
80
Real growth
of GDP
84.9
60
40
Industrial production, %
115
20
112.5
110.2
108.8
110
0
2004
2005
2006
2007
2008
2009
2010
109.7
106.2
105
103.1
100
Industrial
production
96.9
95
90
85
2004
2005
2006
2007
2008
2009
2010
Direct foreign investments, %
348.2
350
300
250
200
170.3
168.1
150
Direct foreign
investments
111.6
100
77.9
60.1
51.6
50
0
2004
2005
2006
2007
2008
2009
2010
Investments into basic capital, %
2010
102.9
2009
73.1
2008
97.4
2007
129.8
2006
119
2005
101.9
2004
128
0
20
40
60
80
100
120
140
Investments into
basic capital
Exports, %
160
142.6
135.9
127.9
140
120
127.4
100
107.5
113.2
80
Exports
60
62.5
40
20
Imports, %
0
2004
2005
2006
2007
2008
2009
2010
160
140
135.4
131.3
141.1
130.8
120
120.4
100
122
80
Imports
60
55
40
20
0
2004
2005
2006
2007
2008
2009
2010
Consequences of joining the
WTO, export
The government has improved the legislation
according to the WTO’s demands.
Besides the export quota on metal production was
canceled.
It became more difficult to impose anti-dumping
investigations against Ukrainian companies.
Ukraine activated trade cooperation with the WTOmembers thus it allowed the national exporters to
broaden sales market of their production.
Besides Ukraine increased amount of export of
traditional kinds of products.
Consequences of joining the
WTO, import
1. Imports to Ukraine are stable and homogeneous for its
commodity structure.
 Energy resources – 25-30 %,
 equipment and machinery –18-20 %,
 chemical production – about 14 %.
2. Freer access of goods from the WTO member countries on
the Ukrainian domestic market and increasing imports.
3. Import price of natural gas increased by 38% in 2008, but it
Is not directly related to the fact that Ukraine accessed the WTO.
CONCLUSION
Entering the WTO isn’t a mistake, but a
huge step in the future
LOGO