Ukraine tries to avoid US sanctions

In an attempt to lift US sanctions against Ukraine, the country's president and the prime minister has asked the parliament to pass a draft law on compact disk (CD) production. The US imposed sanctions, coming in force on 23 January, on goods from Ukraine over its failure to fight copyright piracy. The row centres on the unauthorized production in Ukraine of compact discs (CDs) and optical media products - including CD-ROMs and DVDs - which is estimated to cost American businesses about $75m per year. To compensate for these losses, the US imposed punitive tariffs on Ukrainian imports of metals, footwear and other goods last December. Ukraine's government estimates the country may lose at least $400m annually due to the US move. The US also threatens to dash Ukraine's hopes to join the World Trade Organisation if the country fails to protect copyrights. Washington has been urging Kiev to crack down on copyright piracy for more than two years, but with little success. The US says Ukraine is one of the major sources for the trade and production of unlicensed CDs. Counterfeit CDs, CD-ROMs and DVDs produced in Ukraine are available in almost all shops and markets there, as well as at some outlets in Russia, Eastern Europe and even in the UK. Illegal production of CDs causes at least $250m to $300m a year in lost revenues to the global record industry, according to experts.