Ukraine

On February 5, 2008, the General Council of the World Trade Organization cleared the path for Ukraine’s membership in the WTO by approving Ukraine’s accession package. Ukraine will have to ratify the deal by July 4, 2008 and would become a member 30 days after notifying the WTO Secretariat of this ratification. Ukraine applied for WTO membership in 1993 and concluded the negotiations on January 25, 2008. As of July 27, 2007 there were 151 members of the WTO.

The European Union launched negotiations with Ukraine for a free trade agreement on February 18, 2008. The finalization of Ukraine’s WTO accession process on February 5, 2008 was a prerequisite for FTA talks. The EU is Ukraine’s largest trade partner, followed by Russia, and Ukraine is EU’s 25th largest export market. Ukraine became independent after the Soviet Union dissolved in 1991 and is Europe’s second largest country by area.

Russia applied for WTO membership in 1993 and hopes to complete the process before Ukraine gains the status of a full Member. Otherwise, Ukraine would have the ability to request a bilateral deal with Russia, prolonging Russia’s accession talks. Any single Member would be able to block Russia’s accession. Saudi Arabia, a Member since December 2005, has initiated trade talks with Russia.

Source: World Trade Organization 2008 Press Release; European Commission Press Release; CIA World Factbook; BRIDGES Weekly Trade News Digest www.ictsd.org; various news wires

Outlook for U. S. Agricultural Trade FY 2008

USDA’s Economic Research Service raised their Fiscal Year (FY) 2008 agricultural export forecast at $101 billion, up $10 billion from November’s forecast. Higher unit values for wheat, feed grains and soybeans and products account for over half the increase. Exports of livestock, poultry and dairy products are forecast at a record $18 billion, up $900 million from the November estimate. Increased pork and broiler meat shipments and higher prices for animal fats account for most of the change. For the October-December period, the value of broiler meat exports grew almost 50%, while the volume increased about 15%.

The revised broiler meat forecast reflects higher broiler shipments and unit value due to firm foreign demand resulting from the weaker dollar. Demand from Russia and China, major markets, should remain strong. China’s economy is expected to be among the fastest growing in the world in 2008. The rapidly growing middle class should boost U.S. exports of poultry meat, red meats, and dairy products. Changes to Russia’s import quota will allow more broiler meat exports to that market.

Source: USDA/Economic Research Service

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