VZCZCXYZ0027
PP RUEHWEB

DE RUEHKV #0200/01 0261537
ZNR UUUUU ZZH
P 261537Z JAN 07
FM AMEMBASSY KYIV
TO RUEHC/SECSTATE WASHDC PRIORITY 1033
INFO RUCPDOC/DEPT OF COMMERCE WASHDC
RUEHGV/USMISSION GENEVA 0043
RUEHZL/EUROPEAN POLITICAL COLLECTIVE

UNCLAS KYIV 000200 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
GENEVA FOR USTR 
STATE PLEASE PASS TO USTR FOR KLEIN/MOLNAR 
USDOC FOR 4201/DOC/ITA/MAC/BISNIS 
USDOC FOR 4231/ITA/OEENIS/NISD/CLUCYCK 
STATE FOR EUR/UMB, EB/TPP/BTA, EB/TPP/MTA 
 
E.O. 12958: N/A 
TAGS: ETRD WTRO ECON PGOV UP
SUBJECT: UKRAINE WTO UPDATE: JANUARY 26 
 
REF: A. KYIV 82 
     ¶B. 2006 KYIV 4667 
     ¶C. 2006 KYIV 4648 
 
¶1. (SBU) Summary: The GOU is anxious to push ahead as 
quickly as possible on its WTO accession.  Minister of 
Economy Volodymyr Makukha is requesting to hold bilateral 
consultations in early, rather than late, February. 
Makukha continues to work to ensure U.S. beef and pork 
imports flow freely, although he also hopes to begin 
discussions soon with the USG on conducting an audit of the 
U.S. veterinary system.  We have cautioned the GOU on plans 
to reconstitute Special Economic Zones; the Ministry of 
Economy assured that any new zones would be compliant with 
WTO rules.  Pharmaceutical companies approve of the draft 
resolution on registration of medical drugs, one of five 
the GOU has identified as required for accession.  WTO DG 
Pascal Lamy rejected the idea that Ukraine and Russia might 
synchronize their accessions, and he plans to meet with PM 
Viktor Yanukovych at Davos.  End Summary. 
 
¶2. (U) This latest edition in a series of regular update 
cables regarding the status of Ukraine's WTO accession 
(refs A, C, and previous) covers the period January 13 - 
January 26. 
 
GOU Anxious to Push Ahead Quickly 
--------------------------------- 
 
¶3. (U) Minister of Economy Volodymyr Makukha told 
Ambassador on January 23 that the GOU wants to move ahead 
on accession plans as quickly as possible.  Makukha 
expressed concern regarding Washington's proposal to 
conduct the next round of bilateral talks on February 23 
and asked if this date could be moved up.  If the bilat 
could be held during the first half of February, said 
Makukha, this would pave the way for a Working Party 
meeting in late February, and hopefully for a final WTO 
General Council vote in July.  Ambassador promised to pass 
on this request to Washington.  Vyacheslav Tsymbal, 
Director of the Ministry of Economy's WTO Division, told 
EconOff January 25 that Ukraine had already received 
comments from the EU on Ukraine's recently passed 
legislation and were anxiously awaiting U.S. comments. 
 
Agriculture Trade 
----------------- 
 
¶4. (SBU) Makukha reiterated to Ambassador his argument (ref 
B) that the GOU had gone "above the law" to let in imports 
before conducting an audit of the U.S. veterinary 
inspection system.  Makukha sent a letter on January 22 to 
Ambassador Crowder, USTR Chief Agricultural Negotiator, 
stating unambiguously that the Ukrainian market was now 
open to U.S. beef and pork, and requesting consultations 
with U.S. experts on conducting a system audit.  Zhanna 
Pastovenska, from the Ministry of Economy's WTO Division, 
noted to Econoff January 17 that even just setting a date 
to begin discussions of a system audit (i.e. not a date for 
the audit itself) would help give the Ministry of Economy 
leverage in dealing with other parts of the GOU who are 
emphasizing this issue.  He suggested to Ambassador that 
the GOU was considering ending all grain export quotas in 
February. 
 
Special Economic Zones (SEZs) 
----------------------------- 
 
¶5. (U) Econoff queried Tsymbal on January 18 regarding 
plans to reconstitute SEZs and cautioned that the GOU would 
need to be careful to avoid any violations of WTO rules. 
Tsymbal said he expected the government to push through a 
 
SIPDIS 
law on SEZs during the first quarter of 2007.  The GOU was 
well aware of the WTO implications, said Tsymbal, and would 
ensure full WTO compliance. 
 
Data Exclusivity: Pharmaceutical Companies Happy 
--------------------------------------------- --- 
 
¶6. (SBU) Katerina Rybalchenko, Executive Director of the 
Association of Pharmaceutical Research and Development 
(APRaD), which unites local affiliates of major 
international pharmaceutical companies, told Econoff on 
January 19 that APRaD approved of the draft Cabinet of 
Ministers Resolution on registration of medical drugs. 
APRad still had one small concern on specific language, but 
overall thought the draft was in good shape.  Rybalchenko 
said she expects the Cabinet to approve the resolution, one 
of five outstanding regulatory acts on the GOU's list of 
those required for accession, with no changes. 
 
Lamy: No Synchronization with Russia 
------------------------------------ 
 
¶7. (U) WTO Director-General Pascal Lamy, speaking to 
reporters on January 23, rejected the possibility that 
Ukraine and Russia would somehow synchronize their 
accessions, noting that neither Ukrainian nor Russian 
officials had ever raised the issue of synchronization with 
him.  Lamy said he planned to discuss Ukraine's accession 
at a January 26 meeting with PM Viktor Yanukovych during 
the World Economic Forum in Davos. 
 
TAYLOR