The cabinet is slowing the pace of accession to the WTO so as not to join before Russia in an attempt to appease the latter
ine to become a member of the World Trade Organization. The problem, however, is the new-found lack of urgency in the cabinet of Prime Minister Viktor Yanukovych. Meeting top EU officials in Brussels Sept. 21, Yanukovych was urged to conclude talks to join the WTO by the end of 2006 to bring Ukraine closer to EU policies. In reply, he said he would not bend to EU pressure but protect Ukraine’s national interests. Clearly a balance has to be found between protecting domestic producers from competition, but also the public from overpriced and inefficiently produced goods. The next day, Yanukovych was in Moscow for gas talks. According to the premier, Ukraine must take into account that “unsynchronized” accession - that is, Ukraine joining earlier than Russia - could worsen trade relations between the two countries.
Kyiv stands closer to WTO accession than Moscow. The EU wants Ukraine to become a member of the WTO and to create a free-trade zone with it in order for talks on EU membership to go forward. Why should Ukraine delay in order to join simultaneously with Russia? Ukraine has to do its own thing. Neither is there a guarantee there will be a sweetener, like Russia selling cheap gas. Belarus is a case in point. A close ally of Russia, Minsk has been told to pay much more for gas from 2007. Also, the timeframe for Russia’s admission is unclear. The possibility of Ukraine joining the WTO first may be embarrassing for Russia. But Yanukovych is supposed to be representing the interests of his own country.
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