On Thursday 1 June, the European Parliament approved (by 475 votes in favour to 102 against with 61 abstentions) the amended draft regulation proposed by the Commission in September 2016 that aims to grant further trade preferences to Ukraine for certain agricultural and industrial products – in addition to what is already offered as part of the EU-Ukraine free trade area. MEPs ruled out some agricultural products, such as wheat, tomatoes and urea.
The Parliament also calls for the fight against corruption, the respect of human rights and fundamental freedoms to be conditions for granting additional preferences to Ukraine. Furthermore, it calls for industry representatives and member states to be able to request an investigation in order to launch the safeguard measures aimed at protecting EU producers.
"By offering temporary additional trade preferences, the Parliament wants to show its support to the ongoing reforms in Ukraine, to strengthen SMEs and to provide the necessary impulse for the growth of trade flows", rapporteur Jaroslaw Walesa (EPP, Poland) stated. This vote paves the way for trialogue negotiations between the Parliament, Council and Commission.
Having entered into force on 1 January 2016, the EU-Ukraine free trade area provides for the reciprocal opening of goods and services markets, with the removal or quicker reduction of EU tariffs. The additional preferences aim to compensate for the country's economic difficulties.
The EU is Ukraine's biggest trading partner, accounting for 40% of its trade in 2015, while Ukraine accounts for 0.8% of total EU trade. Exports from Ukraine to the EU stood at €13.1 billion in 2016, and those from the EU to Ukraine came to a total of €16.5 billion. The export of EU services to Ukraine stood at €5 billion in 2015, while those of Ukraine to the EU stood at €2.7 billion. In addition, the EU's foreign direct investment (FDI) stocks in Ukraine amounted to €16.3 billion at the end of 2015. (Original version in French by Emmanuel Hagry)