Concluding remarks by the Chairperson

I am pleased to deliver my concluding remarks on the second Trade Policy Review of Ukraine. Let me start by thanking H.E. Mr Taras Kachka, Deputy Minister of Economy and Trade Representative of Ukraine, Ambassador Yevhenia FILIPENKO, and the rest of Ukraine's delegation for their positive and constructive engagement in this meeting. I would also like to thank Ambassador Ronald SABORIO for his insightful intervention as the discussant. The Review was based on the reports by the WTO Secretariat and Ukraine, both of which were commended by delegations.

Throughout this meeting, we heard numerous references to the exemplary resilience and determination of the Ukrainian people and the capacity of Ukraine's economy to adapt to unprecedented challenges. It was noted that adequate macroeconomic policies, continued progress in economic and governance reforms, the development of alternative trade routes, and international assistance have helped the economy withstand severe supply-side disruptions and register solid growth after its fall by almost 30% in 2022. Nonetheless, many challenges remain, including depressed output, labour shortages, and persistent uncertainty and disruptions due to security risks and widespread damage to infrastructure.

Against this backdrop, delegations commended Ukraine for its vital role as a supplier of key agricultural commodities, including to LDCs and other developing countries, and its determination to help ensure global food security. In this regard, they noted strategic initiatives such as “Grain from Ukraine”, the clearance of landmines from agricultural land, work to secure and diversify export routes, and domestic resilience-building programmes. Together with significant support from international partners, these and other efforts have underpinned the strong recovery of Ukraine's agricultural exports to nearly pre-war levels, a development that was welcomed by many delegations.

Delegations praised Ukraine's unwavering commitment to the rules-based trading system, along with its proactive and constructive role at the WTO despite very challenging circumstances. Many of them applauded Ukraine's strong notification record, swift acceptance of the Agreement on Fisheries Subsidies, accession to the Government Procurement Agreement, adoption of commitments on services domestic regulation, participation in the multi-party interim appeal arrangement, and membership in the Cairns Group. Several delegations also expressed appreciation for Ukraine's solid and thoughtful contributions to WTO work across a wide range of areas, including agriculture, dispute settlement reform, electronic commerce, MSMEs, trade and gender, and trade and environmental sustainability. Ukraine was encouraged to join the Investment Facilitation for Development initiative, which several delegations saw as a valuable complement to Ukraine's own efforts to revive much‑needed private investment.

Ukraine's recovery and post-war reconstruction were central themes of this Review, with several delegations highlighting the key role of investment and trade in rebuilding critical infrastructure and catalyzing efforts to transform Ukraine into a globally competitive and integrated, resilient, sustainable, and inclusive economy. In this regard, delegations welcomed steps by Ukraine to improve its investment framework and strengthen its overall business climate, including through judicial reform, the establishment of specialized anti-corruption bodies, the reinforcement of corporate governance for SOEs, the modernization of the legal and institutional framework for intellectual property, and agricultural land reform. At the same time, some delegations noted that more work was needed to address continuing shortcomings in the rule of law. Completing such work was seen as both necessary and urgent to unleash Ukraine's full trade and investment potential. On the role of investment more generally, I was encouraged by Deputy Minister Kachka's remarks on Wednesday that Ukraine is taking steps to ensure that foreign investors play their full role in supporting Ukraine's reconstruction, and that the Ukrainian authorities are focusing on optimizing Ukraine's SOE portfolio and preparing selected entities for privatization.

Many delegations commented on Ukraine's pioneering use of digital tools, including under the flagship Diia Portal developed by the recently established Ministry of Digital Transformation. They noted Diia's potential to reduce red tape, boost entrepreneurship and exports, and increase the transparency, accountability, and efficiency of public services. Several delegations also commended Ukraine for efforts to safeguard the integrity of public contracts, not least by embracing electronic tendering in government procurement through the Prozorro platform, which, as we heard on Wednesday, has yielded concrete results in terms of savings and the fight against fraud. Delegations also praised Ukraine's efforts to foster a more inclusive trade environment through its financial support programmes for MSMEs, women entrepreneurs, and veterans. It was felt that these initiatives could help mitigate long-standing adverse demographic trends, which have been exacerbated by the war-induced population exodus and displacement.

Another major theme running through this Review was the essential role that international trade, underpinned by open and predictable trade policies and a well-functioning rules-based trading system, can play in supporting Ukraine's post-conflict reconstruction and helping Ukraine capitalize on emerging trade opportunities. One such area of opportunity, which was highlighted by many delegations, is digital services trade, where Ukraine has performed strongly since its previous Review, fuelled in large part by a burgeoning start-up sector.

Delegations commended Ukraine for reforming many of its trade policies, noting the key role that Ukraine's WTO membership, strong commitment to closer EU integration, and extensive and growing network of RTAs have played in driving reforms. Many delegations praised Ukraine's efforts to update its customs legislation and promote trade facilitation by improving its single window, introducing an Authorized Economic Operator programme, and advancing the digitalization of customs services. Some delegations also noted steps by Ukraine to streamline customs transit procedures, enhance state aid controls, eliminate distorting agricultural support measures, and strengthen its legislation on financial services. Several delegations commented on the positive impact that many of these actions could have on reducing Ukraine's trade costs, promoting competition in the domestic market, and spurring Ukraine's international competitiveness.

At the same time, several delegations saw additional room to address remaining trade obstacles, calling on Ukraine to simplify its relatively complex tariff structure, enhance the predictability of its trade remedy measures, and streamline its SPS regime, especially as regards food imports. Concerns were also expressed about possible trade barriers that could result from the divergence of national and international standards as Ukraine seeks to integrate more closely with the EU, prompting calls for Ukraine to ensure that its standards are developed through open and transparent processes and in close adherence to WTO principles.

In closing, I trust that Ukraine will draw on the many constructive suggestions made by delegations during this Review to continue improving its trade and investment framework. Doing so could help Ukraine make full use of international trade to bolster economic resilience, accelerate reconstruction, and deepen its integration into the global economy, all with appropriate support from international partners, many of whom used this meeting to reaffirm their unwavering support for Ukraine. The Ukrainian delegation, for its part, has demonstrated its strong commitment to the Trade Policy Review Mechanism and the rules-based trading system through the high level of its delegation, active participation in our exchanges, and comprehensive responses to almost 400 written questions by 20 delegations. Delegations look forward to receiving any outstanding questions within a month.

With that, allow me to thank all delegations for a successful second Review of Ukraine's trade policies and practices.