Ukraine's leading English-language newspaper since 1995

WTO membership should be a priority for Ukraine, and not a point of concession to Russian interests

equirements of the World Trade Organization. By doing so, the country inched one step closer to joining the trade organization, but a lot of time has been lost in this process – more than a decade.

Most of the WTO laws were pushed through parliament as pro-presidential oppositionist forces teamed up with Prime Minister Viktor Yanukovych’s pro-big business Regions Party. While the left-wing Socialist Party of Ukraine generally supported the WTO legislation, the other left-wingers in Yanukovych’s cocktail-like coalition, the Communists, didn’t.

One has to wonder what this group has in common, if not more than hunger for the obvious benefits of being in power.

The leftists cried foul against many laws required for WTO membership, saying they will expose Ukraine’s inefficient business to stronger foreign competitors.

This is true, but competition fuels progress and improvement. Moreover, Ukraine has had sufficient time to prepare and adapt. And the arrival of foreign competition will only raise the standards of Ukrainian business, as well as the living standards of the nation’s populace.

Joining the WTO is, indeed, a double edge-sword. It will open access to new markets for Ukraine’s vast export-oriented steel and chemical industries. But it will also lift protectionist barriers for many inefficient domestic manufacturers who fear foreign competition. But keeping the entire country on hold to protect inefficient businesses, or well-connected tycoons with interests in auto-assembly ventures that curtail import duties on ready-made cars, isn’t justified.

President Viktor Yushchenko has in recent months pressured parliament hard to pass the last batch of WTO legislation, arguing that membership will help sustain sharp economic growth posted in recent years. He is right and one need look no further than to compare neighboring Central Europe with the outskirts of Moscow for proof.

Earlier this year, Yushchenko expressed hope that Ukraine could join the WTO by the end of this year. The hopeful president even appeared confident in early autumn that his arch rival would support speedy implementation of his pro-Western integration agenda. Time has proven these expectations to be based on false hopes. Yanukovych can’t be trusted – he needs to be wrestled with in order to keep the country on track. This is the unfortunate reality, one which could resurface in attempts to conclude WTO membership talks fast.

Getting into the WTO before Russia is key.

Ukraine making it into the WTO first would give Ukraine important leverage over its northern neighbor, including veto rights against Russia’s WTO entry, as well as added strength in negotiations on natural gas supplies and other trade-related issues. Russia, which is also seeking WTO membership, has expressed its hope that Kyiv and other former Soviet states such as Kazakhstan will synchronize WTO membership talks, essentially putting the brakes on their chances of getting in first.

Ukrainian officials have in recent days predicted that the country would become a full-fledged member by next spring. This provides no comfort, taking into consideration their previous predictions on WTO and other policy goals.

More worrisome are rumors circulating throughout the capital amid insiders that Yanukovych is intent on delaying WTO membership. As the story goes, the plan is to give into Kremlin interest synchronizing the timing, so that both countries get in simultaneously. In return, big industry backing Yanukovych’s political career could receive inside deals offering them lower prices on natural gas.

Yanukovych has, of course, denied this, but government officials under him seem to find increasingly more technicalities to blame for putting the WTO off. This is disturbing to say the least.

Russia is clearly not intent on letting Ukraine take an upper hand. Getting into the WTO first would be leverage Ukraine has not had for some time.

It’s difficult to say at this point if Yanukovych’s camp has surrendered to Russian interests. But more circumstantial evidence is piling up in support of this argument.

We urge Ukraine’s government to join the WTO as quickly as possible. Getting into the WTO before Russia would, for once, offer Ukraine a strategic advantage over Moscow.Chances like this don’t come often. This one was virtually offered on a silver platter. It would be sad and unfortunate to see Ukraine fail in capitalizing on this opportunity.