U.S. to Strip Nation of Special Trade Privileges

Contending that Ukraine has failed to halt widespread piracy of U.S. compact discs, the Bush administration announced it was stripping the former Soviet republic of special trade privileges and would hold hearings on possible further sanctions.

U.S. Trade Representative Robert B. Zoellick announced in Washington that the administration had decided to suspend Ukraine’s participation in a program that allows developing countries to ship certain products into the U.S. duty free.

In addition, the administration released a list of products from Ukraine that could be subjected to penalty tariffs in retaliation for the lost sales claimed by U.S. producers of music, computer programs and movies.