Brussels, 02/10/2013 (Agence Europe) - Before the upcoming signing of the association agreement, the European Commission expects clarification and solutions from Kiev on several trade issues that are causing friction.
Ahead of an eagerly awaited Eastern Partnership in Vilnius at the end of November - where the EU hopes to sign an association agreement - the visit of European Commissioner for Trade Karel De Gucht to Ukraine on 2 October enabled him to make preparations for the summit and to stock-take with the Ukrainian authorities on their bilateral trade relations. As well as Ukraine's Minister for Economic Development and Trade Ihor Prasolov, De Gucht met the country's leaders - including President Viktor Yanukovych and Prime Minister Mykola Azarov.
While the conditions that Ukraine still has to fulfil in order to sign the agreement in Vilnius remain political (see EUROPE 10929), De Gucht reiterated certain EU trade demands to the Ukrainian authorities. He underlined his objections both to some trade restrictions adopted by Ukraine, and to the worsening of the investment climate in Ukraine over the last year.
Amongst other things, the Commission is targeting a recycling tax on imported vehicles which was adopted by the Ukrainian parliament in July, signed by the Ukrainian president in August, and entered into force on 1 September. On Wednesday, De Gucht said he hoped Ukraine would do everything possible to repeal this law, which is similar to the law introduced by Russia in 2011 and which then became the subject of a complaint at the WTO.
De Gucht also spoke of his concern about several other issues - like Kiev's recently stated intention by senior officials to offer financial incentives for the purchase of Ukrainian manufactured cars. This is a measure which is against WTO rules - an organisation which Ukraine joined in 2008.
As well as the recent introduction of legislation setting out demands on the local Ukrainian content of equipment used in the renewable energy sector, the Commission is also targeting the import quota of coke established by Ukraine - a quantitative restriction which replaced a ban, but the size of which Brussels considers to be too low.
Lastly, the EU is still concerned about Ukraine's continuing resolve to renegotiate some of its tariff concessions at the WTO in order to revise its import duties upwards for certain products (see EUROPE 10757, 10742 and 10703). (EH/transl.fl)