Presentation on theme: "Ukraine’s membership in the WTO: advantages and disadvantages"— Presentation transcript:
1 Ukraine’s membership in the WTO: advantages and disadvantages The reporter: Tania Marchenko,the Ukrainian academy of banking, Sumy,3-year student of bankingResearch supervisor: D.L. TsiganyukLanguage advisor: O.I. Leshchenko
2 STRUCTURE Background information about the WTO Necessity of Ukraine’s entering the unionPredicted advantages and disadvantagesComparison of expectations and realityOur conclusions
3 Background information about the WTO Formation: January 1, 1995Headquarters: Geneva,SwitzerlandMembership: 153 statesOfficial languages: English,French, SpanishDirector-General:PascalLamyWebsite:
4 Background information about the WTO Ukraine became the 152-nd member country of the WTO on May 16, 2008
5 Necessity of Ukraine’s entering the union The European Union emphasizes on higher possibility of entering its community only for those countries which are members of the WTO;It provides Ukraine with the first integration step – creation of free trade area with the EU;The WTO can carry out the functions of international economic regulator
6 Necessity of Ukraine’s entering the union The WTO is absolutely new business sphere, business culture, and new philosophy;The WTO membership opens new markets for the Ukrainian products;Ukraine's WTO accession will help to reduce the cost of critical imports from the WTO Members.
8 ADVANTAGESAccess to the international trade dispute resolution mechanismConducting international trade and businessUkraine gains the status of a rightful participant of international trade
9 ADVANTAGESImport sphereMarket of servicesBank servicesInsurance sectorBranch of communication and informationStatus of member of the WTO will help Ukraine to defend its trade interests better in the global arena
10 DISADVANTAGESIncreased imports, which could cause reduction in industrial output, higher unemployment and social tensionAfter entering the WTO Ukraine will be forced to reduce customstariffss in particular on resources
11 DISADVANTAGESThe rules of the WTO regulate the terms of foreign trade only, here the WTO leaves freedom of actions of country-members in the questions of providing guard of health and environment.Insurance sector
13 Table1. Main macroeconomic indicators of Ukraine in 2004–2010 (growth rates in per cent relative to the same period of the previous year)2004200520062007200820092010Real growth of GDP112.1102.6107.1107.6106.384.9104.2Industrial production112.5103.1106.2110.296.9108.8109.7Investments into basic capital128.0101.9119.0129.897.473.1102.9Direct foreign investments170.3348.260.1168.177.951.6111.6Exports142.6107.5113.2127.4135.962.5127.9Imports131.3120.4122.0135.4141.155130.8Turnover of retail trade ( of legal entities )121.9123.4126.4129.5117.995.3111.7
17 Consequences of joining the WTO, export The government has improved the legislation according to the WTO’s demands.Besides the export quota on metal production was canceled.It became more difficult to impose anti-dumping investigations against Ukrainian companies.Ukraine activated trade cooperation with the WTO-members thus it allowed the national exporters to broaden sales market of their production.Besides Ukraine increased amount of export of traditional kinds of products.
18 Consequences of joining the WTO, import 1. Imports to Ukraine are stable and homogeneous for itscommodity structure.Energy resources – %,equipment and machinery –18-20 %,chemical production – about 14 %.2. Freer access of goods from the WTO member countries on the Ukrainian domestic market and increasing imports.3. Import price of natural gas increased by 38% in 2008, but itIs not directly related to the fact that Ukraine accessed the WTO.
19 Entering the WTO isn’t a mistake, but a huge step in the future CONCLUSIONEntering the WTO isn’t a mistake, but a huge step in the future