In article it is reported about influences of the introduction of Ukraine in the WTO on makrosredu, advantages to producers and consumers, and also the general advantages from membership of Ukraine in the WTO.
3
Prospects of the introduction of Ukraine in the WTO will have complex character and they should be considered from three positions:
• influence of the introduction on the macroeconomic environment;
• advantages of the introduction to consumers;
• advantages of the introduction to producers.
Influence on the macroeconomic environment. In macroeconomic measurement it is possible to call accession to WTO powerful incentive for implementation of structural reforms. The competition aggravation between the Ukrainian and foreign producers on domestic and foreign markets will assist redistribution of resources from inefficient out-of-date productions to the knowledge-intensive modern enterprises and branches. The competition will stimulate implementation of innovative programs, investments into the human capital and new technologies.
Creation of conditions for growth of volumes of foreign investments into economy of Ukraine.
Accession to WTO will give a powerful spur for inflow of foreign investments to economy of Ukraine.
Foreign investors consider WTO membership as a signal that:
• Ukraine has stable, predvidenny and favorable conditions for trade and investment;
• the Ukrainian rules of trade and investment answer the international rules and principles which are well-known to the majority of investors;
• Ukraine respects intellectual property rights;
• costs of business in Ukraine are caused by the simplified trading, customs and ministerial procedures;
• the Ukrainian products and services have open and non-discriminatory access to the markets of the countries – members of the WTO.
Creation of preconditions for expansion of cooperation with trading partners (free trade area creation with European Union). According to Partnership and Cooperation Agreement articles 4, 5, 9 between Ukraine and European Union membership of Ukraine in the WTO is the necessary precondition of liberalization of a mode of trade between Ukraine and EU, to the beginning of negotiations on creation of the free trade area and ensuring gradual integration of Ukraine in European Union by preparation and conclusion of agreement about associated membership of Ukraine in EU.
Because the majority of the countries is members of the WTO, they included its rules and principles in the national legal system. In turn, they expect from the trading partners of observance of the same rules. Thus, deepening of cooperation with Europe or conclusion of agreement about free trade with other country – the member of the WTO demands compliance of the Ukrainian legislation to WTO agreements, first of all, connected with customs barriers, intellectual property rights, technical barriers in trade, sanitary and fytosanitory actions.
EU expansion in May, 2004 as a result of which 10 countries – trading partners of Ukraine were included into the common European market, generates new arguments in favor of the fastest accession of our country to the WTO. Participation in this organization will help izbegnut quantitative restrictions on export of the Ukrainian production with EU as such restrictions in its framework are forbidden.
New possibilities of use of competitive advantages of the Ukrainian producers. Ukraine, as well as each country, has certain advantages in production of certain types of production (a geographical arrangement, natural resources, the cheap qualified labor, traditions of national production, etc.). In economic transformation businessmen had many possibilities for development of commercial intercourses with foreign partners, however, Ukraine still not fully uses advantages of international trade. Accession to WTO will expand possibilities of use of competitive advantages with the Ukrainian producers through simplification of access to the markets of other countries – members of this trade body.
Advantages to consumers
Improvement of quality of the goods and services. Trade liberalization after the accession of Ukraine to the WTO will strengthen competitive pressure upon domestic producers of the goods and service providers. It will force domestic producers to increase quality and safety of production for competitiveness increase on domestic and the international markets. The Ukrainian companies will have more incentives to introduce the international quality standards of ISO.
Reduction of the cost of the domestic and import goods and services. Reduction of the cost of the goods and services will occur under the influence of two factors:
1. Rates of import duty for the goods which are imported to Ukraine within the arrangements fixed in bilateral protocols will decrease. It will assist decrease in the indirect taxes paid by consumers upon purchase of the import goods and services.
2. Growth of number of suppliers of the goods and services will assist an aggravation of the price competition between them. It will promote reduction of the cost of production of those producers which use the monopoly position in the market.
Production expansion of the range. The competition will provide access to wider range of the better goods and services in competitive prices for all consumers. Simplification of trading procedures and liberalization of the market of services create preconditions for arrival on the Ukrainian market of the companies which can offer the Ukrainian consumers wider choice of qualitative production and a high degree of service.
Advantages to producers
Liberalization of access of the Ukrainian goods on the world markets. The Ukrainian producers will receive additional possibilities of export of production owing to introduction of a most favored nation treatment (RNB) and a national treatment (HP) concerning the Ukrainian goods in trading space of all countries – members of the WTO (149 countries of the world of which in world trade about 95 % are the share). Introduction of RNB means that the goods from Ukraine will be delivered on the markets of the countries of the WTO on the same convenient conditions, as the goods from other countries – her members. Quotas of an import of the Ukrainian production of the markets of other countries as application of quantitative restrictions within the WTO is forbidden will be abolished. Introduction of a national treatment concerning the Ukrainian production means that after payment of all customs duties the goods and services will be delivered on the markets of the countries – members of the WTO on the same conditions, as well as the domestic goods.
At the moment many trading partners of Ukraine voluntary apply a most favored nation treatment and a national treatment to the Ukrainian production.
Today the majority of the imported goods gets on the Ukrainian market without payment of import duty. With accession to WTO responsibility of Ukraine on fight against a shadow import will increase, as smuggling will threaten any more to only the Ukrainian market, but also the markets of the external economic partners of Ukraine. As a result of reduction of volumes of an illegal import the Ukrainian markets become more protected from cheap bad quality production.
The general advantages from WTO membership can be summarized as follows:
creation of more favorable conditions for access to the world markets of the goods and services on the basis of predictability and stability of development of trade relations with WTO member countries, including transparency of their external economic policy; access to the WTO mechanism on the settlement of disputes providing protection of national interests if they are restrained by partners, and thus, discrimination elimination; possibility of realization of the current and strategic trade and economic interests by effective participation at development of new rules of international trade.
(On materials of the Ukrainian center of the international integration).