House subcommittee hearing focuses on Ukraine after the Orange Revolution (08/07/05)

House subcommittee hearing focuses on Ukraine after the Orange Revolution

by Marta Matselioukh
U.S.-Ukraine Foundation

WASHINGTON - "Ukraine: Developments in the Aftermath of the Orange Revolution" was the topic of a July 27 open hearing of the U.S. House of Representatives Subcommittee on Europe and Emerging Threats. Chaired by Rep. Elton Gallegly (R-Calif.), the hearing was attended by Subcommittee Ranking Member Robert Wexler (D-Fla.), and Rep. Shelley Berkley (D-Nev.). The well-attended hearing was divided up into two panels. Daniel Fried, assistant secretary of the Bureau of European and Eurasian Affairs at the U.S. Department of State, spoke during the first panel. The second panel comprised Nelson Ledsky, senior associate and regional director at the National Democratic Institute; Stephen Nix, regional program director at the International Republican Institute, and Taras Kuzio, visiting professor at George Washington University.

Chairman Gallegly opened the hearing with an overview of post-Orange Revolution Ukraine and an outline of the hearing's agenda. Economic reform in Ukraine, World Trade Organization accession and graduation of Ukraine from the Jackson-Vanik amendment, as well as EU-Ukraine and NATO-Ukraine relations were set as the main discussion points.

The text of Rep. Gallegly's statement may be read at: http://wwwc.house.gov/in-ternational_relations/109/gal072705.pdf.

Complex political environment

Drawing on his recent visit to Kyiv, Mr. Fried commented on the current complex political environment in Ukraine, the impressive successes of President Yushchenko's administration, concerns over some of the government's reforms, and the "New Century Agenda for the American-Ukrainian Strategic Partnership."

With regard to the "New Century Agenda" the U.S. supports Ukraine's desire to draw closer to NATO. However, the pace and intensity of Ukraine's relationship with NATO will depend on Ukraine's own wishes, and on its willingness and ability to meet NATO performance-based standards through progress on reforms. The U.S. is committed to ensure that NATO's door remains open, Mr. Fried explained.

The U.S. deeply appreciates Ukraine's substantial military contribution toward building a peaceful, secure and democratic Iraq, and its assistance in Operation Enduring Freedom in Afghanistan, he continued. Also, the U.S. applauds Kyiv's decision to expand dialogue on non-proliferation issues.

As for Ukraine's WTO accession, the U.S. strongly supports Ukraine's bid and is pleased to see the passage of some of the necessary legislation, particularly the Optical Disc law. According to Mr. Fried, "the administration expects to see quick and effective implementation of these laws and strengthening their enforcement. Now that President Yushchenko has signed the intellectual property legislation, without amendments, into law, the [U.S.] administration is examining whether to terminate $75 million worth of trade sanctions currently imposed on Ukraine. This decision would be made within the next few weeks. In addition, the administration will conduct a 'Special 301' out-of-cycle review of Ukraine."

Mr. Fried stated that "Ukraine has complied with the provisions of the Jackson-Vanik Amendment to the Trade Act of 1974 for over a decade. This administration strongly supports Ukraine's immediate graduation from Jackson-Vanik and the extension of Permanent Normal Trade Relations to Ukraine."

In his concluding remarks, Mr. Fried explained that he is confident that "President Yushchenko and his team have the vision and commitment necessary to do what needs to be done, and to lead Ukraine into the new century. The U.S. will pitch in to help."

Following his testimony, Mr. Fried was asked various questions by Rep. Wexler that pertained to the Jackson-Vanik provisions and the WTO.

Rep. Berkley's question focused on the progress of the restitution of property in Ukraine, which was taken during the Holocaust, back to the Jewish community. In response, Mr. Fried stated that some property has been returned, but more needs to be done.

The entire text of Mr. Fried's testimony may be read at http://wwwc.house.gov/international_relations/109/fri072705.pdf.

Supporting change in Ukraine

During the second panel, Ambassador Ledsky of the NDI underscored that the National Democratic Institute has conducted programs aimed at strengthening democratic political parties, parliamentary groups and civic organizations in Ukraine since 1992.

In particular, he pointed out that Congress has it in its power to assist by focusing on professional exchanges, supporting the international community working in Ukraine, partnering with Ukraine on anti-corruption measures, and assisting the government with restructuring and improving the rule of law. In addition, congressional support for assistance to the Parliament of Ukraine in 2006 under the Democracy Assistance Commission would be useful.

The entire text of Ambassador Ledsky's testimony may be read at: http://wwwc.house.gov/international_relations/109/led072705.pdf. The IRI's Mr. Nix highlighted the progress Ukraine has made in strengthening democracy. As for constitutional reform that will limit the Ukrainian president's power starting in September, Mr. Nix pointed out that President Yushchenko must either challenge the constitutional amendments in court, or must be willing to surrender certain powers to the parliament and the prime minister. In any case, this separation of powers issue must ultimately be clarified.

There is also a need to reform the judicial system of Ukraine, particularly the courts of general jurisdiction. The United States should aid Ukraine's judicial reform by providing expert assistance and consultation on these necessary structural and procedural changes, which in turn will foster a positive and transparent climate to attract foreign direct investment in Ukraine, Mr. Nix noted.

As for Jackson-Vanik, considering Ukraine's cooperation on the adoption of laws protecting intellectual property rights, Mr. Nix said it is crucial that the U.S. remove outdated trade barriers with Ukraine. The U.S. should further assist Ukraine's development by including Ukraine as an eligible country to compete for the Millennium Challenge Account assistance.

For more on Mr. Nix's testimony, readers may log on to http://wwwc.house.gov/international_relations/109/nix072705.pdf.

Outlook for the future

Dr. Kuzio stated that "Ukraine's progress toward reform under Mr. Yushchenko will progressively move forward and become faster after the 2006 parliamentary election. Mr. Yushchenko's election coalition will win a parliamentary majority, giving it control over the government."

He added that "The speed of reforms will be at a medium pace, compared to their rapid progress in central Europe and the Baltic states. The reasons for this are inherited legacies from Soviet rule and mismanagement and corruption since 1992. A faster reform pace is also constrained by two other factors. First, regional divisions, with support for reform lower in eastern Ukraine. Second, the need to build up administrative capacity to permit Yushchenko's policies to be implemented at the local level."

Dr. Kuzio's entire testimony may be read at http://wwwc.house.gov/international_relations/109/kuz072705.pdf.

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