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EBA - Working meeting on the EU-Ukraine Association Agreement implementation

EBA - Working meeting on the EU-Ukraine Association Agreement implementation . 1. The DCFTA structure. Association agreement (486 articles) PREAMBLE Title I GENERAL PRINCIPLES

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EBA - Working meeting on the EU-Ukraine Association Agreement implementation

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  1. EBA - Working meeting on the EU-Ukraine Association Agreement implementation

  2. 1. The DCFTA structure • Association agreement(486 articles) • PREAMBLE • Title I GENERAL PRINCIPLES • Title II POLITICAL DIALOGUE AND REFORM, POLITICAL ASSOCIATION, COOPERATION IN THE FIELD OF FOREIGN AND SECURITY POLICY • Title III JUSTICE AND FREEDOM • Title IV TRADE AND TRADE RELATED MATTERS (art 25-336) • Title V ECONOMIC AND SECTOR COOPERATION • Title VI FINANCIAL COOPERATION • Title VII INSTITUTIONNAL, GENERAL AND FINAL PROVISIONS • …and lots of annexes!

  3. 1. The DCFTA structure • Title IV TRADE AND TRADE RELATED MATTERS • Chapter 1 – National treatment and marketaccess for goods • Chapter 2 – Trade remedies • Chapter 3 – Technicalbarriers to trade • Chapter 4 – Sanitary and phytosanitarymeasures • Chapter 5 – Customs and trade facilitation • Chapter 6 – Establishment, trade in services and electronic commerce • Chapter 7 – Currentpayments and movement of capital

  4. 1. The DCFTA structure • Title IV TRADE AND TRADE RELATED MATTERS • Chapter 8 – Public procurement • Chapter 9 – Intellectualproperty • Chapter 10 –Competition • Chapter 11 – Trade relatedenergy • Chapter 12 – Transparency • Chapter 13 – Trade and sustainabledevelopment • Chapter 14 – Dispute settlement

  5. 2. DCFTA – Tariff part • "FTA part" of the DCFTA: • Liberalizesmosttariffsbothways, in line with the provision of the WTO / GATT (elimination on "substantially all the trade") • Withdelays for manyproducts • In an asymmetricalmanner: Ukraine has usually more time to adapt • Withquotas (tariff rate quotas / TRQs) for certain agricultural products • All thisbeingspecified in the AA/DCFTA (in two annexes, one for Ukraine, one for the EU) • A ratherusual FTA (with the exception for the asymmetry) – whereas the "Deep and comprehensive" part isveryspecific to Ukraine

  6. 2. DCFTA – Tariff part • Where to get information on tariffs? • Texts of the AA/DCFTA http://eeas.europa.eu/ukraine/assoagreement/assoagreement-2013_en.htm • European Commission "Export Helpdesk" http://exporthelp.europa.eu/thdapp/index.htm

  7. 2. DCFTA – Tariff part • How to use the annexes? There are several possible cases for tariff: • Set at 0 fromday 1 • Set at 0 progressively • Partialreductionfromday 1 (and no furtherreduction) • Partial and progressivereduction • Set at 0 for a limited quota (TRQ) (and usualtariffbeyond quota) This isfullydetailed in the Annexes(one for the EU, one for Ukraine) http://eeas.europa.eu/ukraine/assoagreement/assoagreement-2013-annexes-to-title-iv_en.htm

  8. 2. DCFTA – Tariff part

  9. 2. DCFTA – Tariff part

  10. 3. Autonomoustrademeasures • Autonomoustrademeasures - whatisit about? • Key issue with the AA / DCFTA: thisis an international treaty, whichmeansthatbefore entry into force it must besigned (e.g. by heads of states or anyappointedauthority) and thenratified by 30 parliaments (Ukraine, EU, Member States), whichmaytakeyears… • One option: provisionalimplementation (with consent of the European Parliament), whichmayreduce the delay to a few months. • One other option: unilateralimplementationby the EU of the trade part. • We call this "autonomoustrademeasures"

  11. 3. Autonomoustrademeasures REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the reduction or elimination of customs duties on goods originating in Ukraine – 22 April 2014: Article 1 Preferential arrangements Customs duties on goods originating in Ukraine shall be reduced or eliminated in accordance with Annex I.

  12. 3. Autonomoustrademeasures • When and For how long? It isinto force already, and willbeuntil 1st November: Article 7 Entry into force and application This Regulation shall enter into force on the day following that of its publication in the Official Journal of the European Union. It shall apply until Title IV of the Association Agreement enters into force or, where appropriate, is applied provisionally, and until 1 November 2014 at the latest. The Commission shall publish in the Official Journal of the European Union a notice in the event that this Regulation ceases to apply before that date.

  13. 3. Autonomoustrademeasures • In exchange of what? Nothing: thisis an autonomous EU regulation, Ukraine did not have to do anythingbeyondsome administrative adaptation (in order to make sure that, through the system of rules of originonlyUkrainiangoodsbenefit) • And thenwhat'snext? By the 1st of November, weexpect the AA/DCFTA to beprovisionnallyappliedsothisregulationwouldbecomeredundant • What about territorial application and Crimea? One key issue is to avoidthatgoodsoriginatingfromRussiabenefitformduty free access to the EU market, throughCrimea.

  14. 4. Adressing non-tariffbarriers in the DCFTA • Industrial goods - Technical Barriers to Trade (TBTs) • One of the most important problems that Ukrainian and European exporters face on a day-to-day is the problem of different technical norms and standards • The DCFTA foresees widespread alignment between Ukrainian and EU standards, both for industrial goods and agricultural products. • In 2005-2006, Ukrainian companies wishing to export to the EU faced additional production costs of about 14% on average in order to ensure that their products met EU standards • The use of EU standards will not only make Ukrainian products more competitive on the EU market but also in the rest of the world – the growing markets of the Far East, Middle East, Africa and America

  15. 4. Adressing non-tariffbarriers in the DCFTA • Animals, animal products, plants and plant products – SPS • In parallel with its commitments on technical barriers to trade, Ukraine also commits itself in the DCFTA to align with EU legislation and standards on all animal health, food safety and plant health measures • In addition, a special cooperation mechanism is foreseen to monitor progress and make recommendations on changes to UA's legislation in this field • A number of trade facilitation measures are foreseen, e.g. relating to listing of establishments, verification procedures etc.

  16. 4. Adressing non-tariffbarriers in the DCFTA • Services • In the field of services, the DCFTA is unprecedented in the extent of its liberalisation. • The services chapter is based on the services part of the association agreements that were concluded with countries acceding to the EU – for example with Croatia. • It provides for a complete freedom of establishment in all services and non-services sectors (with a limited number of reservations). In other words, EU and Ukrainian service providers will be able to set up businesses in each others'territories and be treated like domestic service providers. • Furthermore, the DCFTA foresees gradual legislative alignment in financial services, telecom services, postal and courier services, and maritime services

  17. 4. Adressing non-tariffbarriers in the DCFTA • Other fields (1/2) • Provisions on freer capital movement will help to enhance economic growth by allowing easier access to capital and better allocation of capital to its most productive use • There will be gradual alignment of UA's legislation on public procurement with that of the EU. With the sole exception of the defence sector, this would allow mutual unrestricted access of EU and UA suppliers and service providers to each others public procurement markets • Competition policy is another area which should see major improvements. UA has agreed to progressively align its legislation with that of the EU in a number of fields, including on state aid, subsidies, and transparency of decisions

  18. 4. Adressing non-tariffbarriers in the DCFTA • Other fields (2/2) • There are very detailed provisions in the DCFTA regarding intellectual property rights, including a strong section on enforcement of legislation based on EU rules and detailed provisions on so-called geographical indications (GIs) • Regarding customs, we already have relatively good cooperation but the DCFTA enhances this by establishing a framework for mutual administrative assistance to ensure the correct application of customs legislation, cooperation on customs irregularities and fraud etc. • There are a number of trade related energy provisions which will establish rules on the pricing of energy goods (to let market prices prevail and to prohibit dual pricing)

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