EU recognizes Ukraine as “market economy”

EU recognizes Ukraine as “market economy”

The European Union (EU) announced yesterday at the EU summit in Kiev, Ukraine, that it would recognize Ukraine's market economy status. British Prime Minister Tony Blair, who headed the EU summit in Kiev, made the announcement that had been long awaited by Ukraine. The recognition of Ukraine's market economy status will enable Ukrainian producers to export their goods to the EU at lower duty rates. Once the change becomes effective, Ukrainian exports to the EU, including low-cost steel, chemicals, machinery and food stuffs, will likely increase. Moreover, yesterday's events will ease Ukraine's efforts to join the World Trade Organization (WTO), membership in which is expected sometime later this month. Membership in the WTO would mean lower duties on Ukrainian exports worldwide.