"...The Bush administration on Tuesday threatened to impose trade sanctions against Ukraine unless the country makes a greater effort to control what American companies claim is widespread piracy of music, computer programs and other copyrighted material. "Ukraine's exports of pirated compact discs are disrupting markets through the region and beyond. This failure to protect intellectual property rights could jeopardize Ukraine's efforts to join the World Trade Organization and undermine its efforts to attract trade and investment." USTR said in a statement.

According to a USTR fact sheet, the U.S. recording industry estimates that Ukraine has produced and exported between 60 million and 80 million pirated compact discs over the past two years at a loss to the U.S. record industry of more than $200 million annually. Under a June 2000 agreement with the United States, Kuchma committed his country to crack down on unlawful production at Ukraine's CD factories and to implement tougher laws governing copyright piracy. Zoellick's office said that Ukraine had failed to meet any of its commitments..."