IIPA recommends that Ukraine remain a Priority Foreign Country (PFC) and that trade sanctions continue accordingly in 2003. IIPA also recommends that the United States government should continue the suspension of Ukraine’s duty-free trade benefits under the Generalized System of Preferences (“GSP”); those benefits were suspended in August 2001 for Ukraine’s IPR shortcomings.

We make these recommendations because Ukraine’s copyright piracy problem remains very serious almost three years after agreeing to a Joint Action Plan signed by then-President Clinton and President Kuchma that Ukraine has neither effectively nor completely implemented. By its failure to fully implement an optical media regulatory scheme and by its overall criminal enforcement failures, Ukraine is not in compliance with the June 2000 bilateral agreement or the 1992 Bilateral NTR Trade Agreement with the United States (which Ukraine agreed to implement by December 31, 1993).

Also, Ukraine’s overall copyright law and enforcement regime falls far short of compliance with the TRIPS obligations of the World Trade Organization; Ukraine should be prevented from accession to the WTO until it is in complete compliance.