U.S. lifts sanctions on Ukraine's exports (09/11/05)

U.S. lifts sanctions on Ukraine's exports

by Andrew Nynka

PARSIPPANY, N.J. - The United States has lifted a $75 million sanction on Ukrainian exports, the Office of the U.S. Trade Representative announced on August 31. The move is the result of legislation passed recently by Ukraine that improves the protection of intellectual property rights and has been billed as a boon to President Viktor Yushchenko's government.

On July 6 the Verkhovna Rada passed a law that made the piracy of intellectual property illegal. The new law, which went into force on August 2, is meant to strengthen Ukraine's licensing regime and enforcement efforts to stem the illegal production and trade of compact discs and DVDs.

Reaction from the United States to passage of Ukraine's new law protecting intellectual property came quickly. "I commend Ukrainian President Yushchenko and Prime Minister Tymoshenko for their personal involvement in securing passage of these amendments, which is expected to improve Ukraine's protection of intellectual property rights," said U.S. Trade Representative Rob Portman on August 31.

In a statement released the same day, Ukraine's Foreign Affairs Ministry praised the lifting of the sanctions, which it said is proof that the country is moving closer toward joining the World Trade Organization.

The move by the Office of the U.S. Trade Representative "recognized the Ukrainian government's effort to safeguard intellectual property, to bring Ukrainian legislation in line with international standards, and is a sign of Ukraine's progress on the way toward completion of the talks on WTO entry," the Foreign Affairs Ministry statement said. "It is a remarkable event on the eve of Ukrainian President Viktor Yushchenko's visit to the U.S.A."

The move is seen widely as a first major step toward Ukraine's membership in the World Trade Organization. In addition, in order to become a member of the WTO, Ukraine must shed its status as a Jackson-Vanik country, a status that the U.S. Congress had placed on the Soviet Union for its failure to allow citizens to emigrate freely.

In December 2001 the U.S. imposed sanctions on $75 million worth of metals, footwear and other goods from Ukraine in retaliation for the continued violation of intellectual property, most notably of music compact discs and optical media products.

At the time, U.S. officials contended that Ukraine was the largest producer and exporter of pirated media in Europe. Ukrainian piracy of intellectual property copyrights is believed to have cost the U.S. recording industry more than $200 million annually in lost revenue, U.S. trade officials said.

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