Brussels, 23/10/2014 (Agence Europe) - On Thursday 23 October, the European Parliament gave its approval to the extension - until the end of 2015 - of the unilateral trade preferences for Ukraine, while awaiting the entry into force of the free trade area, which has now been postponed until the start of 2016. The MEPs gave their green light (by 497 votes in favour, 78 against and 56 abstentions) to the extension of the arrangements in the initial Commission proposal, without amending them.
The regulation already in place is based on the early application - unilaterally to Ukraine's advantage - of the arrangements in the free trade agreement relating to goods. It provides for a 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 83.4% of Ukrainian exports of processed agricultural products, with the remaining 15.9% being partially liberalised through quotas. Lastly, it provides for the removal of tariffs on 94.7% of Ukrainian industrial products.
According to Ukrainian statistics, Ukraine's exports to the EU increased by $587 million, in other words 25% in the first half of 2014, thus compensating for the reduction in Ukraine's exports to Russia (-24.5%).
Introduced in April, the trade preferences for Ukraine are due to expire at the end of the month. Their extension until the end of 2015 stems from the trilateral compromise made in mid-September between the EU, Russia and Ukraine, under the terms of which the EU agreed to postpone - until 1 January 2016 - the provisional implementation of the EU-Ukraine free trade agreement. The 15 month time gap will enable the EU to respond to Russia's economic concerns through trilateral consultations. (EH)