Temporary tariff cuts for Ukrainian exports to the EU

Еврокомиссия объявила о некоторых торговых преференциях для Украины. Будет облегчен доступ украинских товаров на рынок Европейского Союза. Такие льготы будут распространяться, в частности, на украинский экспорт зерновых культур. Ежегодный выигрыш Украины от этих льгот может составить почти EUR 0,5 млрд. Упомянутые преференции будут действовать до 01.11.2014. За это время предполагается заключение между Украиной и ЕС соглашения о Глубокой и всеобъемлющей зоне свободной торговли (DCFTA) – части соглашения об Ассоциации.

On 11 March 2014, the European Commission announced a system of autonomous trade measures for Ukraine which are to remain in place until 1 November 2014.   These measures are not a substitute for the as yet unsigned Deep and Comprehensive Free Trade Area agreement between the EU and Ukraine but are intended to provide benefits to Ukraine in the more immediate future.

The autonomous trade measure puts in place a so-called “one-way” trade system which allows for almost full, preferential access for Ukrainian goods in the EU market without requiring any reciprocity from Ukraine.  However, a number of significant restrictions are in place relating to rules of origin and safeguards to prevent sudden, potentially damaging, surges of products into the European market.

It is expected that existing EU tariffs for industrial goods exported from Ukraine will be removed  immediately for 94.7% of products, with the remaining products benefitting from reduced tariffs.

In relation to agricultural products, the EU has taken more limited action to ensure that the EU agricultural sector is not harmed by the unilateral trade measures.  In practice this is likely to mean that the EU will grant unlimited preferences to 82.2% of Ukraine’s exports with other products, including cereals benefitting from partial liberalisation through duty-free tariff rate quotas.

In addition, the EU will grant preference to 83.4% of Ukraine’s food exports, with the remaining being partially liberalised through duty-free tariff rate quotas.

The tariff reductions of the original, unsigned trade deal was expected to generate an annual benefit to Ukraine of 483 million euros and so the unilateral arrangements is expected to provide significant financial benefits to Ukraine.

The EU Trade Commissioner has urged the proposal to be fast-tracked so that it can be operational by June and has stated that it is hoped that the Deep and Comprehensive Free Trade Area agreement will be signed by 1 November 2014 while also indicating that the autonomous trade measures could be extended if necessary.

Links to the European Commissions’ press releases are below.

An “economic life-line for Ukraine”: Temporary tariff cuts for Ukrainian exports to the EU (European Commission – STATEMENT/14/63   11/03/2014)

European Commission proposes temporary tariff cuts for Ukrainian exports to the EU (European Commission – IP/14/250   11/03/2014)

Авторы:

Michael Swangard
Partner

Anousheh Bromfield

Associate
anousheh.bromfield@clydeco.com

Источник:

http://sites.clydeco.vuturevx.com/34/2842/march-2014/client-update—130314—ukraine-grain.asp?sid=d9f6e547-f32f-461b-9c4b-b2b2ef974f7c

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