euportal twitter euportal facebook

New Trade Agreement between the EU and Ukraine

On 1.1.2016 a free trade agreement between Ukraine and the European Union (DCFTA) entered into force, which forms part of the Association Agreement.

The introduction of the DCFTA as part of the Association Agreement between Ukraine and the EU represents an important milestone in bilateral relations, as well as significant economic benefits for both sides. The Ukrainian economy will on the one hand received a stable and preferential access to the market of 500 million customers, while the EU, on the other hand, can trade on the Ukrainian market without obstacles.

The Agreement will also contribute to the modernization of the Ukrainian economy and diversification with the ambitious aim of convergence of Ukraine to EU law in areas such as competition, protection of intellectual property rights, public procurement and will create room for further reforms related to the fight against corruption. DCFTA is an opportunity for Ukraine to improve the climate in the economy and attract foreign investment and better integrate into the world economy. For the full implementation of the agreement it is foreseen for several years, since the rule provides for a gradual adjustment and time for all stakeholders to adapt to the new situation.

Commissioner Malmström expressed confidence in the prospects of Ukraine: ” The entry into force of this trade area on 1 January 2016 creates unique opportunities for Ukraine to stabilize, diversify and develop its economy to the benefit of all its citizens. Assistance from the EU will be made available to help Ukrainian SMEs seize these new opportunities, to grow, and thereby create jobs. EU businesses will benefit as well by gaining improved access to a market of 45 million people. The change will not occur over night, it will require work and investment. Gradually, the DCFTA will contribute to a prosperous Ukraine and to stronger economic integration with the EU.”

EU exports to Ukraine amount to EUR 17 billion and Ukrainian exports to the EU equaled EUR 14 billion (data for 2014). Main EU exports to Ukraine consist of machinery and appliances (€ 5.7bn in 2013), transport equipment (€ 2.6bn), chemicals (€ 3.7bn) and manufactured goods. Ukraine’s main exports to the EU are base metals (€ 3.5bn in 2013), vegetable products (€ 2.8bn), mineral products (€ 2.7bn), machinery and appliances (€ 1.2bn).

Source:http://europa.eu/rapid/press-release_IP-15-6398_en.htm?locale=en

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>