On May 16 of this year, Ukraine joined the WTO as its 152^nd member. Although Ukraine's economy has been booming for the past decade and foreign investment has been rapidly growing, WTO accession will bring with it a new set of standards for Ukraine, resulting in even higher levels of FDI and further integration into the world economy. WTO countries in the region have seenan approximate doubling of FDI post-accession. The main terms of Ukraine's accession are market liberalization and non-discrimination in sectors including agriculture, manufactured goods, services trade, intellectual property protection and overall reform of the country's commercial environment, including mechanisms for dispute resolution and international enforcement procedures.

AGRICULTURE

Open access to Ukraine's agricultural market is one of the key terms of WTO accession. For foreign investors, a major obstacle to doing business in this sector had been the recent government-imposed export quotas and restrictions on grains, including wheat and rye. These quotas have now been lifted. In addition, minimum export prices have been revised, and tariff rate quotas for grains, sugar, and other agricultural products have been reformed. Finally, Ukraine must now adhere to international standards for imports of beef, pork, poultry, fish, and biotech products.

MANUFACTURED/INDUSTRIAL GOODS

Ukraine has committed to a reduction of average bound tariffs on manufactured goods to 4.6%. In addition, the country joined many of the zero-tariff agreements including the Information Techonology Agreement, and those applying to civil aircraft, chemicals, agricultural equipment and parts, construction products, scientific equipment, distilled spirits, pharmaceuticals, furniture, non-ferrous metals, paper, and toys. Export duties on steel scrap and non-ferrous metals will also be reduced.

SERVICES TRADE

In the service sectors, Ukraine had, for a long time, limited foreign equity rights. With WTO accession, Ukraine's core service sectors, including: banking, financial services (and within five years, insurance), business and professional services, telecommunications, construction and engineering, transport, education, distribution, energy, environmental, and many other services will be granted open access and 100% foreign ownership rights.

INTELLECTUAL PROPERTY PROTECTION

Ukraine has had a poor track record on protection of intellectual property. With WTO accession, the country has agreed to implement most WTO rules, including on intellectual property rights enforcement, customs valuation, technical barriers to trade, trade remedies, trade-related investment measures, and other requirements.

REFORM OF COMMERCIAL ENVIRONMENT

Perhaps the singlemost important provision for foreign investors of Ukraine's WTO accession is the country's commitment to reform its commercial environment. This provision encompasses two major tracks: 1) Reform of the country's internal commercial regime, including improved transparency and implementation of new laws and 2) Participation in WTO dispute settlement processes and bilateral consultations. Both internal reform and increased participation in and adherence to international enforcement procedures should reassure investors that there is now a lower risk to doing business in the country.