1. Ukraine’s membership in the WTO: advantages and disadvantages
The reporter: Tania Marchenko,
the Ukrainian academy of banking, Sumy,
3-year student of banking
Research supervisor: D.L. Tsiganyuk
Language advisor: O.I. Leshchenko

2. STRUCTURE Background information about the WTO
Necessity of Ukraine’s entering the union
Predicted advantages and disadvantages
Comparison of expectations and reality
Our conclusions

3. Background information about the WTO
Formation: January 1, 1995
Headquarters: Geneva,
Switzerland
Membership: 153 states
Official languages: English,
French, Spanish
Director-General:Pascal
Lamy
Website:

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.

7. Predicted advantages and disadvantages

8. ADVANTAGES
Access to the international trade dispute resolution mechanism
Conducting international trade and business
Ukraine gains the status of a rightful participant of international trade

9. ADVANTAGES
Import sphere
Market of services
Bank services
Insurance sector
Branch of communication and information
Status of member of the WTO will help Ukraine to defend its trade interests better in the global arena

10. DISADVANTAGES
Increased imports, which could cause reduction in industrial output, higher unemployment and social tension
After entering the WTO Ukraine will be forced to reduce customstariffss in particular on resources

11. DISADVANTAGES
The 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

12. Comparison of expectations and reality

13. Table1. Main macroeconomic indicators of Ukraine in 2004–2010 (growth rates in per cent relative to the same period of the previous year)
2004
2005
2006
2007
2008
2009
2010
Real growth of GDP
112.1
102.6
107.1
107.6
106.3
84.9
104.2
Industrial production
112.5
103.1
106.2
110.2
96.9
108.8
109.7
Investments into basic capital
128.0
101.9
119.0
129.8
97.4
73.1
102.9
Direct foreign investments
170.3
348.2
60.1
168.1
77.9
51.6
111.6
Exports
142.6
107.5
113.2
127.4
135.9
62.5
127.9
Imports
131.3
120.4
122.0
135.4
141.1 55
130.8
Turnover of retail trade ( of legal entities )
121.9
123.4
126.4
129.5
117.9
95.3
111.7

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 its
commodity 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 it
Is 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
CONCLUSION
Entering the WTO isn’t a mistake, but a huge step in the future

20. Thank You !