Ukraine-EU Free Trade Area to take effect after Association signing

Most of the rules setting up the Ukraine-EU Deep and Comprehensive Free Trade Area (FTA) will take effect immediately after the signing of the Ukraine-EU Association Agreement on November 28-29, Ukrainian Prime Minister Mykola Azarov told his weekly Cabinet of Ministers meeting on October 2 after meeting with EU Trade Commissioner Karel de Gucht. In the meeting, Azarov said he requested financial and technical assistance in setting up EU standards and technical regulations. He also requested EU investment in the Ukrainian economy, as well as introducing “systemic promotion of Ukrainian products in EU countries.” In turn, Ukraine will ensure equal opportunities for European companies to operate in Ukraine, he said.

Zenon Zawada: While the Free Trade Area will take effect immediately, adopting and implementing its rules and regulations will take years. . Tariff barriers that will be eliminated aren’t even a major impediment to Ukraine-EU trade at the moment. Standardization and certification are bigger issues. So we don’t expect any shock to the Ukrainian economy, especially considering there are far more serious threats to its stability

Azarov can reasonably expect financial and technical assistance, but we’re not sure what a system promotion of Ukrainian products in the EU would entail. We expect Ukrainian companies will have to handle such promotion on their own. We also don’t expect the investment climate to be improved in Ukraine for as long as Viktor Yanukovych is president. So the prime minister offered some flowery words for what we expect will be a painful, but necessary transition in integrating with the global marketplace.