Brussels, 20/03/2014 (Agence Europe) - The European Parliament has given its approval, in committee, to the temporary and unilateral tariff liberalisation on the European side, which was proposed by the European Commission.
On 20 March, the international trade committee approved the draft regulation tabled by the Commission aiming to offer unilateral trade preferences to Ukraine, while awaiting the entry into force of free trade accompanying the EU-Ukraine association agreement, which is due to be signed on Friday 21 March. This temporary liberalisation of European tariffs is expected to bring €500 million of savings in customs duties per year for Ukrainian exports. “Parliament and the other EU institutions should lose no time in passing this law, given the urgency of the situation in Ukraine. Ukraine's new government needs strong and immediate EU help to fight off external pressures and to overcome economic and financial hardships”, said rapporteur Pawel Zalewski (EPP, Poland), whose report proposes no amendment to the draft text.
The early application of arrangements in the free-trade agreement on trade in goods is part of the aid package of €11 billion for Ukraine, proposed by the Commission on 5 March and approved by the European Council the following day. The regulation must still be approved by the Parliament plenary in early April, in order to enter into force in May. It will be valid until 1 November. The proposal provides for tariff liberalisation for 82.3% of Ukrainian agricultural products and the opening of quotas for sensitive products (cereals, pork, beef and poultry). It also provides for preferences for 84.1% of Ukrainian exports of processed agricultural products, the remaining 15.9% being partially liberalised by the quotas, and the proposal provides for the removal of tariffs for 94.7% of Ukrainian industrial products. Lastly, the proposal provides for safeguard measures to prevent any risk of export of fraudulent Ukrainian products. (EH)