Thursday 25 July 2013

Eastbook.eu | EU’s Deep and Comprehensive Free Trade Area vs. Russia’s Customs Union: Kiev Contemplating

Eastbook.eu | EU’s Deep and Comprehensive Free Trade Area vs. Russia’s Customs Union: Kiev Contemplating:
This article explores the benefits of trade cooperation options which are still posed before Ukraine: the Deep and Comprehensive Free Trade Area with the European Union and the Customs Union with Russia.
Brussels and Kiev have initialled the Deep and Comprehensive Free Trade Area in July 2012 and this became an important moment in EU-Ukraine bilateral relations. The purpose of DCFTA is for EU and Ukraine to liberalize their trade by lifting customs tariffs, removing import quotas, and facilitating legal aspects of trade. On average 99 percent of export-import duties will be eliminated. It will also adjust the special and technical requirements towards goods and harmonize customs processes.
Ukraine in turn will have to adjust her trade laws and standards according to the EU’s ones. Brussels also took into account the agricultural dominance of Ukrainian exports and granted duty free quotas for some sensitive products, such as beef, pork, poultry and cereals. While for other types of products EU has foreseen a progressive elimination of customs duties that will occur during the ten years period. This is why the new cooperation between EU and Ukraine is more than just a free trade area and it was specifically designed to go deeper – it would tackle trade obstacles through Ukraine’s adoption of EU’s trade acquis, and be comprehensive – grasp trade in both goods and services.



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