Brussels, 09/03/2005 (Agence Europe) - On Wednesday, the EU and Ukraine signed a bilateral agreement allowing the last remaining restrictions to trade in textiles and clothing products to be lifted, with both sides agreeing to match low levels of customs duties; Although quantitative restrictions were lifted back in early 2001, the agreement signed on Wednesday ends import and export licensing requirements for all textiles and clothing products. Initialled on 22 December 2004, the agreement will prolong the provisions of the bilateral agreement which has been in place since 1993, and removes the export licensing requirements on the Ukrainian side.
The main elements of the agreement are as follows: - Ukraine and the EU continue to apply the same tariff levels, which do not exceed 4% for yarns, 8% for fabrics and 12% for clothing; - the two parties guarantee they will not bring in any quantitative restrictions or export and import licensing requirements; - both parties refrain from adopting any non-tariff measures which could hinder trade in textile and clothing products; - both parties will ensure close administrative cooperation; - and the agreement contains a clause of suspension of benefits in case of non-respect of commitments.
Ukraine is a priority partner country within the EU's European Neighbourhood Policy (ENP). In this framework, the EU-Ukraine Cooperation Council adopted an action plan during the General Affairs Council on 21 February (see EUROPE of 19 February, p.5). Given the political evolution in Ukraine, the EU has expressed the wish to enter into a much closer economic relationship, including the possibility of a Free Trade Agreement and concrete measures to remove regulatory and non-tariff barriers to trade. The EU has also offered strong support for Ukraine's accession to the WTO in 2005. Since enlargement on 1 May last hear, the EU has become Ukraine's largest trading partner, with about 33% of Ukraine's total trade. In 2003, Ukraine exported textile products to the EU25 for a value of around EUR 472 euros and Community textile exports to Ukraine amounted to EUR 732 million.