The European Commission (EC) has announced the completion of its talks over reviewing the European Union’s Deep and Comprehensive Free Trade Area (DCFTA) Agreement with Ukraine.
The modernized agreement ensures trade flows from Ukraine to Europe and world markets and is also building bridges of stability and economic solidarity, while continuing to defend EU farmers’ interests, EC President Ursula von der Leyen said on Monday, adding that Ukraine belongs in the EU family.
The review of the trade liberalization provisions in the association agreement marks a new stage in establishing a long-term, predictable and mutual basis in the wider context of Ukraine’s accession process, according to an EC assessment.
The review also fully takes account of the sensitivity of certain agricultural sectors, which were pointed out by EU members and farmers, the EC said in a statement on Monday.
The review will foster Ukraine’s gradual integration with the EU single market and illustrates that the EU commitment to support Ukraine is at its strongest ever, it said. Once approved the reviewed DCFTA agreement will be profitable for both sides, providing basis for a long-term economic certainty and stable trade relations, the statement said.
The updated version is structured around three key foundations, it said. The first one sets equal rules of the game, access to the new market is conditioned on Ukraine’s gradual alignment with relevant EU production standards such as animal welfare, use of pesticides and veterinary drugs, the statement said.
Second, a reliable protective reservation: both sides will be allowed to activate a protective mechanism allowing them to take appropriate measures in situations where an import may cause unfavorable consequences for either side.
The third foundation is broader trade flows: the reviewed agreement establishes a balance between supporting EU-Ukraine trade and bearing in mind the sensitivity of certain agricultural sectors and concerned EU parties.
The agreed market access varies: for the most sensitive goods, such as sugar, poultry, eggs, wheat, corn and honey, there are only slight increases compared with the initial DCFTA; for others, improvements have been made to benefit both sides on the basis of additional markets; and finally, full liberalization has been approved for certain non-sensitive products the EC said.
Both sides also have agreed to examine measures to help Ukrainian exporters to reach their traditional markets in third countries, it said.
Member states and the European Parliament will be informed about details of the agreement in coming days. Providing the agreement undergoes finishing legal touches in principle, the EU and Ukraine will now continue their respective procedures for the reviewed DCFTA agreement to be formally approved, the EC said.
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