Contending Ukraine has failed to halt widespread piracy of American 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.
US Trade Representatives Robert Zoellick announced that the Administration had decided to suspend Ukraine's participation in a program that allows developing countries to ship certain products into the US duty free.
Ukraine, the most populous of the former Soviet republics, sold $975 million in goods to the US last year, placing the Ukraine 64th among all countries exporting to the US. The penalty tariffs would impose a 100% border tax on targeted products from Ukraine as a way to price those products out of the US market. The list of sanctions released by the Administration covered such products as steel and chemicals.
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