President Bush issued a determination March 28 stating that the U.S. will apply WTO rules to Ukraine once it formally joins that organization later this year despite the operation of state trading enterprises in Ukraine. The president determined that STEs account for a significant share of Ukraine’s exports and goods that compete with imports and that they do or are likely to unduly burden and restrict or adversely affect the foreign trade of the U.S. or the U.S. economy. However, the terms and conditions of Ukraine’s accession to the WTO include ensuring that all STEs will make purchases of goods and services that are not intended for governmental use, and sales in international trade, in accordance with commercial considerations such as price, quality, availability, marketability and transportation. Ukraine has also committed to afford U.S. firms an adequate opportunity, in conformity with customary practice, to compete for such purchases or sales.
World Trade/Interactive
