Ukraine hosts GUUAM meeting (07/28/02)

Ukraine hosts GUUAM meeting

by Roman Woronowycz
Kyiv Press Bureau

KYIV - Ukraine and three fellow member-states of GUUAM, the international multilateral organization, signed a free trade agreement during their annual summit in Yalta, this year held on July 19-20.

In addition to Ukraine, the economic organization counts Georgia, Azerbaijan and Moldova as members. Uzbekistan officially still holds membership as well, but it suspended that membership last month and has indicated it may withdraw over what it believes was a lack of activity. While Tashkent was officially represented at the summit by Uzbekistan's ambassador to Ukraine, he did not sign any of the nine documents that were issued.

Ukraine's Minister of Foreign Affairs Anatolii Zlenko, who signed the agreement opening up trade among the four countries, said that it would do much to re-energize the organization, which was founded to stimulate trade among the states through which the ancient Silk Road once bisected.

"The signing creates the economic basis for the existence of GUUAM," said Mr. Zlenko.

In addition to stimulating commerce, it is hoped that a regional free trade zone on Russia's borders will force the economic giant of the region to agree to become part of a similar zone. Russia has resisted all calls to organize free trade among its neighbors, especially persistent efforts by Ukraine.

GUUAM is the only geopolitical structure on the territory of the former Soviet Union that is not controlled by Moscow and does not have Russia as a member. As such, the agreement between the four countries to open their borders to the tariff-free exchange of goods and services will pressure Moscow to agree to a free trade zone for the entire Commonwealth of Independent States, to which the four active GUUAM states belong as well, and for which Kyiv has pushed for several years.

Serhii Tolstov, director of the Institute of Political Analysis and International Studies in Kyiv, told the newspaper Den that the free trade agreement strengthens Ukraine's economic situation in the region.

"The creation of the free trade zone, if it actually happens, gives the five united member-states the ability to collectively put forward the matter of a free trade zone for EurAsEC," explained Mr. Tolstov, who explained that the CIS as an economic entity is practically non-existent.

EurAsEC is the Eurasian Economic Community, a new economic grouping that Moscow recently created on the CIS territories. Ukraine has limited its participation in the new organization to observer status.

Volodymyr Sydenko, an economic analyst with the Razumkov Center for Economic and Political Research, expressed doubt, however, that the new GUUAM free trade zone would stimulate increased trade among the member-states with the exception of gas and oil commodities trade. He said it could benefit Ukraine the most in giving it access to the transportation of the energy products from the Caspian region.

The presidents of Georgia, Ukraine, Azerbaijan and Moldova attended the two-day affair in Yalta and signed agreements on cooperative efforts to maintain peace and stability in the region and on fighting organized crime. Ukraine's President Leonid Kuchma expressed particular satisfaction over these initiatives as GUUAM's contribution to a global effort.

"We should significantly speed up interaction to ensure the GUUAM zone becomes a zone of peace and stability, and to prevent the growth of crime and illegal migration," said Mr. Kuchma, according to Interfax-Ukraine.

He said particular attention must be paid to terrorist activity and international money laundering, and called for the development of a Financial Action Task Force within the group.

During his presentation to the state delegation on July 20, Mr. Kuchma also presented his vision for the organization, which he said had potential as the economic link between Europe and the Pacific region of Asia.

Azerbaijan's President Haidar Aliyev, who chaired this summit, emphasized that, as the group considers its role in international affairs, it must also resolve festering conflicts on its own territories. He noted that several of the member-states had continuing civil conflicts, including the unresolved issue of Abkhazia between his country and Georgia, and Moldova's problem with the breakaway Transdniester Republic.

"While hoping for the aid of international community in finding peace settlements, we should also unite our efforts within GUUAM to withstand these threats and create terms for conflict resolution," said Mr. Aliyev.

The Azerbaijani president noted that in addition to "aggressive separatism," GUUAM needed to tackle problems associated with religious and national extremism, armed aggression, illegal weapons trade and drug trafficking.

Several Western countries, including the United States, sent official observer groups to the Yalta summit. State Department Coordinator for the Newly Independent States William Taylor, who represented the United States along with U.S. Ambassador to Ukraine Carlos Pascual, said he was optimistic about GUUAM's future. He added that he could not rule out Washington's financial support for an oil pipeline through the member-states to Western Europe, according to Interfax-Ukraine. Mr. Taylor also said the United States is interested in attaining observer status in GUUAM.

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