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RESTRICTED WT/TPR/S/334 15 March 2016

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RESTRICTED WT/TPR/S/334 15 March 2016 RESTRICTED WT/TPR/S/334 15 March 2016 (16-1479) Page: 1/163 Trade Policy Review Body TRADE POLICY REVIEW REPORT BY THE SECRETARIAT UKRAINE This report, prepared for the first Trade Policy Review of Ukraine, has been drawn up by the WTO Secretariat on its own responsibility. The Secretariat has, as required by the Agreement establishing the Trade Policy Review Mechanism (Annex 3 of the Marrakesh Agreement Establishing the World Trade Organization), sought clarification from Ukraine on its trade policies and practices. Any technical questions arising from this report may be addressed to Cato Adrian (tel: 022/739 5469); and Thomas Friedheim (tel: 022/739 5083). Document WT/TPR/G/334 contains the policy statement submitted by Ukraine. Note: This report is subject to restricted circulation and press embargo until the end of the first session of the meeting of the Trade Policy Review Body on Ukraine. This report was drafted in English. WT/TPR/S/334 • Ukraine - 2 - CONTENTS SUMMARY ........................................................................................................................ 7 1 ECONOMIC ENVIRONMENT ........................................................................................ 11 1.1 Main Features .......................................................................................................... 11 1.2 Economic Developments ............................................................................................ 11 1.3 Developments in Trade .............................................................................................. 15 1.4 Foreign Direct Investment ......................................................................................... 19 2 TRADE AND INVESTMENT REGIME ............................................................................ 21 2.1 General Framework .................................................................................................. 21 2.2 Trade Policy Objectives ............................................................................................. 24 2.3 Trade Agreements and Arrangements .......................................................................... 25 2.3.1 WTO .................................................................................................................... 25 2.3.2 Regional and preferential agreements ....................................................................... 26 2.3.2.1 European Union (EU) ........................................................................................... 26 2.3.2.2 European Free Trade Association (EFTA) ................................................................. 28 2.3.2.3 Commonwealth of Independent States (CIS) ........................................................... 29 2.3.2.4 Former Yugoslav Republic of Macedonia (FYROM) .................................................... 30 2.3.2.5 Montenegro ........................................................................................................ 30 2.3.2.6 Canada .............................................................................................................. 31 2.3.2.7 Free trade agreements under negotiation ............................................................... 31 2.3.3 Other agreements and arrangements ........................................................................ 31 2.4 Investment Regime .................................................................................................. 32 3 TRADE POLICIES AND PRACTICES BY MEASURE ........................................................ 36 3.1 Introduction ............................................................................................................. 36 3.2 Measures Directly Affecting Imports ............................................................................ 36 3.2.1 Import procedures and requirements ........................................................................ 36 3.2.2 Ordinary customs duties ......................................................................................... 37 3.2.3 Other duties and charges ........................................................................................ 42 3.2.4 Tariff quotas and tariff exemptions ........................................................................... 42 3.2.5 Fees and charges for services rendered ..................................................................... 45 3.2.6 Internal taxes ....................................................................................................... 46 3.2.7 Import prohibitions, restrictions, and licensing ........................................................... 48 3.2.8 Customs valuation ................................................................................................. 49 3.2.9 Rules of origin ....................................................................................................... 51 3.2.10 Anti-dumping, countervailing duty, and safeguard regimes......................................... 51 3.3 Measures Directly Affecting Exports ............................................................................. 54 3.3.1 Export procedures and requirements ........................................................................ 54 3.3.2 Export taxes, fees, and charges for services rendered, and internal taxes on exports .......................................................................................................................... 55 3.3.3 Export restrictions ................................................................................................. 58 WT/TPR/S/334 • Ukraine - 3 - 3.3.4 Export subsidies, finance, and guarantees ................................................................. 59 3.3.5 Export promotion and marketing assistance ............................................................... 59 3.4 Measures Affecting Production and Trade ..................................................................... 60 3.4.1 Subsidies .............................................................................................................. 60 3.4.2 Standards, technical requirements, and conformity assessment .................................... 63 3.4.3 Sanitary and phytosanitary measures ....................................................................... 65 3.4.4 Trade-related investment measures.......................................................................... 69 3.4.5 Free zones and special economic areas ..................................................................... 70 3.4.6 Transit ................................................................................................................. 72 3.4.7 Government procurement ....................................................................................... 72 3.4.8 State trading, state-owned enterprises, and privatization............................................. 74 3.4.9 Countertrade and barter ......................................................................................... 76 3.4.10 Competition policy ............................................................................................... 76 3.4.11 Price controls ...................................................................................................... 77 3.4.12 Trade-related intellectual property regime ............................................................... 78 4 TRADE POLICIES BY SECTOR ..................................................................................... 85 4.1 Agriculture .............................................................................................................. 85 4.1.1 Main features ........................................................................................................ 85 4.1.2 Market access ....................................................................................................... 86 4.1.3 Domestic support ................................................................................................... 86 4.1.4 Export measures ................................................................................................... 89 4.1.5 Level of support..................................................................................................... 89 4.1.6 Selected agricultural products .................................................................................. 90 4.2 Fisheries ................................................................................................................. 95 4.3 Mining and energy .................................................................................................... 96 4.3.1 Electricity ............................................................................................................. 97 4.3.2 Gas and oil ......................................................................................................... 100 4.4 Manufacturing ........................................................................................................ 103 4.5 Services ................................................................................................................ 105 4.5.1 Overview ............................................................................................................ 105 4.5.2 Financial services ................................................................................................. 106 4.5.2.1 Banking services ..............................................................................................
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