EU-UKRAINE ASSOCIATION AGREEMENT

УДК 339.924(47771)

Танаревська А.І., студентка 2 курсу
ХНЕУ ім. С. Кузнеця

Negotiations on the EU-Ukraine Association Agreement took place in 2007-2017, and the country was run by three presidents – Viktor Yushchenko, Viktor Yanukovich and Petro Poroshenko.

Between 2007 and 2011 negotiations on the Association Agreement took place, which included a deep and comprehensive free trade area between the EU and Ukraine. The agreement was signed in two stages: March 21 and June 27, 2014. It has replaced the previous framework of cooperation between Ukraine and the EU. The Association Agreement is the main instrument for rapprochement between the EU and Ukraine: it promotes deeper political relations, stronger economic ties and respect for common values.

As of November 1, 2014 some parts of the Association Agreement have been temporarily applied. This strengthened EU-Ukraine cooperation on human rights, fundamental freedoms and the rule of law; political dialogue and reform, as well as the movement of persons. It has also strengthened cooperation in a wide range of areas, including in the energy sector, the environment, counteracting climate change, transport, financial services, public finances, in particular countering fraud, agriculture and rural development, consumer protection and civil society.

The agreement came into force on September 1, 2017.

The Association Agreement with the EU is a huge document on seven sections and over a thousand pages, which clearly regulates the gradual economic and political rapprochement of Ukraine with the European Union.

The agreement has a total of more than 2100 pages and consists of:

  1. preamble;
  2. 486 articles;
  3. 44 annexes;
  4. 3 Protocols.

Despite the fact that the document covers a very wide area, it does not reflect the following issues:

  1. The prospect of membership.

The Preamble of the Association Agreement only states that the European Union recognizes the European aspirations of Ukraine and welcomes its European choice.

  1. The prospect of liberalization of the visa regime.

The Preamble of the Association Agreement is only one mention of the importance of introducing a visa-free regime for Ukrainian citizens at an appropriate time after creating the conditions for well-managed and safe movement of people.

In order to understand the importance of signing the Association Agreement, it is worth considering some of the benefits contained in it.

First of all, the Association Agreement means for Ukraine free access to the world’s largest market for the vast majority of Ukrainian goods, which creates significant opportunities for business. In accordance with the provisions of the Association Agreement, the EU has pledged to apply zero customs duties on goods imported into the EU from Ukraine since the entry into force of the Association Agreement. As a result, according to estimates, Ukrainian exporters will save almost 500 million Euros ($ 685 million) a year, as they no longer have to pay duties. In general, Ukrainian exports to the EU will increase by 1 billion Euros per year, in particular, sales of textiles, metals and food products are expected to increase.

In addition, the Association Agreement provides Ukraine with higher standards and more stringent requirements for the safety of products on the domestic market. Ukraine pledged to introduce European standards in order to fully approximate EU procedures in the field of standardization, metrology, accreditation and conformity assessment. This will increase the quality of Ukrainian products in the domestic market and create a positive image of Ukraine as an exporter of high-quality goods on the foreign market.

Another positive aspect of the Association Agreement is that it contributes to the creation of a more favorable investment climate in Ukraine through the harmonization of national legislation with EU law.

Despite all of the foregoing strengths, the Association Agreement also has serious challenges. First of all, it is about increasing competition in the domestic market as a result of eliminating tariffs. In accordance with Section 4 of the Association Agreement, Ukraine has committed itself to gradually reduce its duties on goods from the EU during the transition period. After the end of the transition period (average 10 years), the import duty rate in Ukraine should be zero for all industrial products from the EU. Although in the medium-term, hard competition can have a positive impact on the country’s economy; short-term effects are likely to be painful for Ukrainian producers.

The Association Agreement also contributes to safeguarding protectionism by setting quotas that allow imports of agricultural products from Ukraine without customs duties. The introduction of quotas between Ukraine and the EU means that Ukrainian producers can deliver a certain amount of goods imported without paying customs duties in the EU. After the quotas have been exhausted, Ukrainian producers have to pay the general import duties applicable in the EU.

The Association Agreement also provides for certain expenses from Ukraine related to the approximation and enforcement of European standards. In particular, introduction of new procedures in the field of certification, as well as the creation of regulatory bodies, should be carried out at the expense of Ukraine. This process reveals another problem: lack of qualified personnel.

Obviously, the Association Agreement with the EU has important medium- and long-term benefits for Ukraine, but at the same time it has short-term costs. In addition, the benefits of the Agreement will only be possible if it is effectively implemented by the Ukrainian authorities, whose efforts should be aimed at ensuring the implementation of the Association Agreement not as an order but as a guideline for the successful development of Ukraine.

REFERENCES

  1. Association Agreement.

  2. Chervonenko V. Association of Ukraine with the EU : How It Works // BBC Ukraine.

  3. EU-Ukraine Relations: Information Reference.

Науковий керівник

старший викладач Черниш Л.М.