privind abolirea temporara a taxelor vamale pentru exporturile ucrainene
The European Commission today adopted a proposal for temporarily removing customs duties on Ukrainian exports to the EU.
Following the recent unprecedented events in the country and the security, political and economic challenges faced by Ukraine, on 6 March 2014 the European Council stated its support to help stabilize Ukraine’s economy with a package of measures. One of these was the granting of autonomous trade preferences, set out in today’s proposal for an EU Council/Parliament Regulation.
The idea is not to await the entry into force of the Association Agreement’s (AA) provisions on a Deep and Comprehensive Free Trade Area (DCFTA), but to advance the implementation of its tariffs section by means of autonomous trade preferences and to start unilaterally the reduction or elimination of the EU’s customs duties on goods originating in Ukraine. However, the preferences are not a substitute for the DCFTA and will be granted for a limited period only: until 1 November 2014. It is expected that the DCFTA between the EU and Ukraine will be signed and provisionally apply before the 1st November 2014 in which case the unilateral system of autonomous trade preferences ends.
Once adopted by the EU, this unilateral measure will allow Ukrainian exporters to benefit from preferential access to the EU market in full line with the schedule of concessions negotiated under the DCFTA. Ukraine will not have to provide extra access to EU exports in return. The temporary elimination of the customs duties will be total or partial, depending on the sector.
"The European Commission is committed, and ready, to support Ukraine to stabilise its economic and financial situation", said European Commission President José Manuel Barroso. "Last Thursday, the EU Heads of State and Government welcomed the 11 billion euros package of support to Ukraine presented by European Commission. The Commission is moving ahead fast with the implementation of this support package, and today has adopted the first of the foreseen measures – a set of trade provisions that will represent an economic benefit to Ukraine of around 500 million euros per year. This proposal is a concrete, tangible measure of EU support to Ukraine."
"I’m delighted that we have been able to act so swiftly to prepare the way for help to Ukraine. The idea is for the EU to open its doors to exports from Ukraine, helping to give a real boost to Ukrainian businesses with a real impact on the daily-lives of all Ukrainians", said EU Trade Commissioner Karel De Gucht. "With this rapid response, the European Commission has shown it stands shoulder to shoulder with the people of Ukraine and I would now encourage the European Parliament and the Council to fast track the approval process, so the tariff reductions can be in place by June."
The annual value of this support measure will be nearly €500 million in tariff reductions, of which almost €400m accrue to the agricultural sector.
The EU’s unilateral trade opening requires Ukraine to fully co-operate with the EU in its implementation and ensure that Ukraine does not change in any way its tariffs towards the EU during this period. In addition, a number of safeguard controls will be put in place to prevent market-distorting surges impacting adversely on European companies and industry including the agricultural sector.
The proposal in detail:
Industrial Products: Existing EU tariffs for industrial goods exported from Ukraine will be removed immediately for 94.7% of products. For the remaining handful of products (some chemical products, etc.) the tariffs will be reduced.
Agricultural Products: For agricultural goods, the EU has taken important but more limited action to open up its market to Ukrainian agriculture. This will ensure the European agricultural sector is not harmed by this unilateral trade action.
In concrete terms, the EU will grant immediate and unlimited preferences to 82.2% of Ukraine’s exports. For the other products (cereals, pork, beef, poultry and a handful of additional products) a partial liberalisation is achieved by the granting of duty-free tariff rate quotas (TRQs), which limit the amount of certain goods able to benefit from the trade preference.
Processed food products: The EU will grant immediate preferences to 83.4 % of Ukraine’s exports. The remaining 15.9% will be partially liberalised through TRQs.
Safeguard systems: In order to prevent any risk of fraud, the entitlement to benefit from autonomous trade preferences is conditional on the compliance by Ukraine with the relevant procedures linked to the ‘rules of origin’ of products as well as involvement in effective administrative cooperation with the EU. Moreover, Ukraine must abstain from introducing new duties or charges having equivalent effect or new quantitative restrictions or measures having equivalent effect or from increasing existing levels of duties or charges or from introducing any other restrictions.
Safeguards are available and the reintroduction of normal customs duties is possible where products cause, or threaten to cause, serious difficulties to Union producers of like or directly competing products. This system is based on statistical data collected from national customs officials throughout the EU. In case the data demonstrates a sharp or swift increase of imports (meaning that, for example, products originating from another country (not Ukraine) end up flooding the EU market through false Ukrainian certificates of origin and benefit unduly of the DCFTA), the EU may re-establish the tariffs on a said product.
Background
Ukraine is a priority partner country within the European Neighbourhood Policy (ENP) and the Eastern Partnership. The European Union has been seeking an increasingly close relationship with Ukraine going beyond mere bilateral cooperation, encompassing gradual progress towards political association and economic integration. This was the logic behind the Association Agreement, including a DCFTA, negotiated between the European Union and Ukraine from 2007-2011 and initialed by both parties in 2012. Under the provisions of the DCFTA, the European Union and Ukraine are to establish a free trade area over a transitional period of a maximum of 10 years starting from the entry into force of the Association Agreement.
On 21 November 2013, Ukraine announced the suspension of the preparations for the signature of the Association Agreement, including the DCFTA, with the EU. The signature was initially scheduled to take place at the Eastern Partnership Summit, held in Vilnius, on 28-29 November 2013.
Following the recent unprecedented events in the country and the security, political and economic challenges faced by Ukraine, the European Council stated its intention to support the economic stabilization of the country by means of a package of measures, including the granting of autonomous trade preferences.
For more information
Statement of Commissioner De Gucht, 11 March 2014, Statement/14/63
Press Release (IP/14/219): The European Commission’s support package for Ukraine, 5 March 2014
Statement of the Heads of State or Government on Ukraine, 6 March 2014:
//www.consilium.europa.eu/uedocs/cms_Data/docs/pressdata/en/ec/141372.pdf
Guide to the EU-Ukraine Deep and Comprehensive Free Trade Area (DCFTA):
//trade.ec.europa.eu/doclib/docs/2013/april/tradoc_150981.pdf
EU-Ukraine Association Agreement – the complete texts
//www.eeas.europa.eu/ukraine/assoagreement/assoagreement-2013_en.htm
Trade relations between the EU and Ukraine
//ec.europa.eu/trade/policy/countries-and-regions/countries/ukraine/
Remarks by President Barroso on unilateral trade measures for Ukraine
Press conference
Brussels, 11 March 2014
The European Union is willing to do everything in its powers to contribute to a negotiated solution which respects the will of the Ukrainian people. Our first priority is a negotiated and peaceful outcome to the current crisis.
We are also committed, and ready, to support Ukraine to stabilise its economic and financial situation. Last Thursday, the European Union Heads of State and Government welcomed the 11 billion euros package of support to Ukraine presented by European Commission. The Prime Minister of Ukraine himself expressed gratitude for this very substantive package of support.
I am pleased to report that the Commission is moving ahead fast with the implementation of this support package.
Today, thanks to the hard and efficient work of Commissioner Karel De Gucht and his services, the Commission has adopted the first of the foreseen measures; we have agreed a set of unilateral trade provisions that will allow Ukraine to benefit substantially from the advantages offered in the Deep and Comprehensive Free Trade Area, DCFTA, and this even before the signature of the Association Agreement with Ukraine. This will represent an economic benefit to Ukraine of around 500 million euros per year. Karel will explain you afterwards in more detail these provisions and how they are to be implemented.
Today’s proposal is a concrete, tangible measure of support to Ukraine. It must now be adopted through ordinary legislative procedure by the Council and the Parliament. I strongly hope that the full legislative process can be concluded in time before the last Plenary of the European Parliament, so that the measure can be in force before June this year.
This will of course not be the only measure of support to Ukraine. The Commission continues to work as a matter of the highest priority on the implementation of the Macro Financial Assistance package of 1 billion euros – also part of the support package I presented last week. We will make proposals next week, concretely – they are now being prepared – proposals regarding macro financial assistance. That work is being done in cooperation, of course, with Vice-President Olli Rehn and his services.
Let me stress that the economic support is just a part – an important part, but just a part – of our broader efforts to support Ukraine in the current difficult circumstances. Let me recall that, as a matter of priority, the European Union has decided to sign the political chapters of the Association Agreement with Ukraine before 25 May, so before the elections. This will seal the political association between the EU and Ukraine before the upcoming elections.
So once again the European Union stands by Ukraine. We will continue to work very hard to support the democratic choices of the Ukrainian people and to help guarantee Europe’s peace and stability.
An "economic life-line for Ukraine": Temporary tariff cuts for Ukrainian exports to the EU
Statement by EU Trade Commissioner Karel De Gucht
Good afternoon ladies and gentlemen.
I’d first like to thank President Barroso for his presentation today and his full support for the trade action I have been working on for Ukraine.
I am very pleased that the College of Commissioners has agreed today to my proposal for a system of autonomous trade measures for Ukraine.
This will be an important component of the European Union’s package to help Ukraine during this difficult period. A package which the President himself presented to you already last week. What we proposed today adds on to this package – these are new measures.
Today is a first step in delivering rapid and direct assistance to the people of Ukraine. As the President just explained, it is also a clear sign of the European Union standing shoulder to shoulder with all the Ukrainian people.
So what does this system of autonomous trade measures really mean?
In short, the EU will open its doors to exports from Ukraine, giving a real boost to Ukrainian companies with the knock-on effect of creating or maintaining jobs across the country. These measures will be valid until 1 November 2014. We hope that in the meantime the Deep and Comprehensive Free Trade Area (DCFTA) part of the agreement will be signed. If not, we could prolong the measure.
We are all aware of the economic plight facing Ukraine right now. This trade action is more than a gesture – it is an economic life-line.
Now, the ‘one-way’ trade system will allow for almost full, preferential access for Ukrainian goods onto the EU marketplace – without any reciprocity from Ukraine but with a number of key restrictions.
We have, of course, included certain conditions to prevent abuse from third countries – I’m referring to the rules of origin. We have also put in place important safeguards to prevent sudden damaging surges of products onto the European marketplace which would harm our companies or key sectors such as agriculture.
I would expect a positive impact for Ukrainian businesses and workers to be felt just weeks after this system comes into force.
The expected annual benefits for Ukraine through tariff reductions of the original, as yet unsigned trade deal is in the region of half a billion euros per year, to be precise 483 million euros. So, even a few months of this unilateral arrangement would be expected to bring gains in the hundreds of millions of euros for Ukraine.
This is why I strongly urge the European Parliament and our EU Member States to ‘fast-track’ this proposal so that it can be operational by June.
But let me finish by reiterating that this unilateral system is not a substitute for the Deep and Comprehensive Free Trade Area (DCFTA) that from the outset we have proposed to Ukraine.
The EU-Ukraine complete trade deal is still the goal.
In the medium and long term, only the complete trade deal will modernize Ukraine’s economy; provide it with a new lease of life; and build the trade ties to Europe that offer a brighter economic and stable future for all Ukrainians.
For further information
Press Release (IP/14/250): European Commission proposes temporary tariff cuts for Ukrainian exports to the EU, 11 March 2014
SPEECH/14/205: Statement by President Barroso on the autonomous trade measures for Ukraine
Press Release (IP/14/219): The European Commission’s support package for Ukraine, 5 March 2014
Statement of the Heads of State or Government on Ukraine, 6 March 2014:
//www.consilium.europa.eu/uedocs/cms_Data/docs/pressdata/en/ec/141372.pdf
Guide to the EU-Ukraine Deep and Comprehensive Free Trade Area (DCFTA):
//trade.ec.europa.eu/doclib/docs/2013/april/tradoc_150981.pdf
EU-Ukraine Association Agreement – the complete texts
//www.eeas.europa.eu/ukraine/assoagreement/assoagreement-2013_en.htm
Trade relations between the EU and Ukraine
//ec.europa.eu/trade/policy/countries-and-regions/countries/ukraine/
