News
24.09.2013
Former WTO head: Ukraine should choose between two trade policy models
Ukraine should make a choice between two major trade policy models in the world, but whatever choice it makes, Ukraines development will depend on the situation inside the country and its capability to resist external pressure and external challenges.
Former Director General of the World Trade Organization (WTO) and President of Notre Europe - Jacques Delors Institute Pascal Lamy said this during a discussion at the 10th Yalta Annual Meeting in Livadia Palace, Yalta, on September 21.
Ukraine has to choose between two major trade models. The first is what EU and Eurasian communities have chosen to follow. This is a system in which you transfer the trade sovereignty of your country to a supra-national body. The second is what countries such as Mexico, Norway, Switzerland, Canada and other countries have chosen to follow. In this model you preserve trade sovereignty in your own country and make a series of free trade agreements with many other countries, Lamy said.
In his opinion, the second model is optimum for Ukraine. He arrived at this opinion for a number of reasons. Firstly, Ukraine has a specific mix of economical dominance that is unlike other EU/Eurasian Community countries, secondly, the commodity turnover of Ukraine is divided in approximately equal proportions between the EU and Eurasia. Finally, out-of-tariff barriers influence trade in Ukraine.
Ukraine is situated in a good position between the two unions where differing standards are in operation. However, it is my opinion that the standards will converge at some point in the future, Lamy said.
Therefore, the best scenario for Ukraine is to follow the example set by Mexico, which is now a party to free trade area agreements both with the United States and the EU and develops analogous agreements with the Asian countries.
Whatever strategy Ukraine chooses, the main point is what is inside the country. The matter of real importance is whether economic policy is adaptable to economic pressures and challenges of the modern world, he said.
