Brussels, 07/03/2014 (Agence Europe) - In the framework of the aid package for Ukraine, which includes a trade plank, the European Commission has stated that it is inclined to propose an "early application" of the provisions of the agreement on imports of goods (on the reduction of customs duty and the opening-up of tariff quotas). The Commission is expected to propose a draft regulation to the Council and the Parliament on Tuesday 11 March on these "autonomous commercial measures".
The measure is to be adopted by ordinary legislative procedure by the Council and the Parliament. If they adopt this decision under the current term of the Parliament, the measure may enter into force before June 2014. It would then be in force for a limited period of time (until 31 December 2014).
These interim trade measures, which are unilateral on the part of the EU, will allow Ukraine to take immediate advantage of a number of benefits offered by the agreement, until this agreement can be signed and applied provisionally. The swift implementation of these aid measures will, however, require the Council and the European Parliament to commit clearly to speeding up the approval process.
According to the Commission, liberalisation in the framework of the free-trade zone would allow tariff savings in the order of 500 million euros a year, 400 million of which for the Ukrainian agriculture sector. The bilateral trade agreement liberalises more than 82.3% (in value) of Community imports from Ukraine. For agricultural products deemed sensitive, import quotas at a zero rate of duty will be opened up gradually, to reach one million tonnes of wheat (including flours and agglomerates), 350,000 tonnes of barley and 650,000 tonnes of maize, for example, after five years, and 20,000 tonnes of sugar from year one.
Agricultural trade surplus of 1.6 billion euros for Ukraine in 2013. In 2013, Ukraine recorded a surplus of 1.6 billion euros in its agricultural trade with the EU. It exports stood at 3.818 billion euros (with cereals accounting for 39%, soya 10%, oilseed meal 8% and other oilseed products 19%). EU agricultural exports to Ukraine last year were worth 2.194 billion euros and included preparations for animal feed 6%, cereals other than wheat 9%, oilseed products 6%, spirits and liqueurs 4%, other products (including live animals, pork meat, fruit and cheese) 65%.
For industrial products, the timetable for the liberalisation of the free-trade zone provides for the immediate scrapping of existing customs duty on most products, with a number of exceptions (transitory period), particularly for the automotive sector. (LC with CG)