The trade part of the EU-Ukraine Association Agreement becomes operational on 1 January 2016 | WPN World People News

On 1 January 2016, the European Union (EU) and Ukraine will start applying the Deep and Comprehensive Free Trade Area (DCFTA) which forms part of the Association Agreement signed in June 2014. The rest of the Association Agreement has already been in force since November 2014.

The application of the DCFTA of the EU-Ukraine Association Agreement constitutes a milestone in the bilateral relationship, as it will offer new economic benefits to both sides. Ukrainian businesses receive stable and predictable preferential access to the largest market in the world with 500 million customers, while EU businesses will be able to benefit from easier access to the Ukrainian market and build new relationships with Ukrainian suppliers and cooperation partners. This will also be to the benefit of Ukrainian citizens, as they will have better access to high quality products, and increased competition and the lowering of import tariffs should lead to lower prices.

By its ambitious goals of approximation to EU legislation in areas such as competition, government procurement, and protection of intellectual property rights, the agreement will contribute to the modernisation and diversification of the Ukrainian economy and will create additional incentives for reform, notably in the fight against corruption. The DCFTA will thus offer an opportunity to Ukraine to improve its business climate and to attract foreign investment, helping Ukraine to further integrate with the world economy. The DCFTA is foreseen to be implemented over several years, allowing gradual legislative alignment and time for all affected stakeholders to adjust.

Commissioner Malmström's remarks expressed confidence in the prospects for Ukraine: “The entry into force of this trade area on 1 January 2016 creates unique opportunities for Ukraine to stabilise, diversify and develop its economy to the benefit of all its citizens. Assistance from the EU will be made available to help Ukrainian SMEs seize these new opportunities, to grow, and thereby create jobs. EU businesses will benefit as well by gaining improved access to a market of 45 million people. The change will not occur over night, it will require work and investment. Gradually, the DCFTA will contribute to a prosperous Ukraine and to stronger economic integration with the EU.”

The EU continues to stand by Ukraine by providing assistance and making available advice and expertise, notably to help small businesses (SMEs) to grow and to take advantage of the opportunities granted by the DCFTA, in particular regarding the progressive alignment with EU rules. The DCFTA Facility for SMEs will complement existing EU programmes (EU SURE, SME Flagship) enabling SMEs to be better equipped to the changes in the domestic business environment.

Commissioner Hahn added: "With the DCFTA new opportunities are opening up for Ukraine in the EU and beyond, since European standards are often international standards. The EU will continue to support Ukraine and help with the necessary adjustments. We want to see Ukraine succeed and make use of the full potential of the DCFTA".

Source: European Commission