DCFTA creates new opportunities for Ukraine: Commissioner Malmström

The European Trade Commissioner Cecilia Malmström is confident that the introduction of the trade part of the EU-Ukraine Association Agreement on January 1, 2016 will create unique opportunities for Ukraine to stabilise, diversify and develop its economy, according to an UNIAN correspondent reporting from Brussels.

“The entry into force of this trade area on 1 January 2016 creates unique opportunities for Ukraine to stabilise, diversify and develop its economy to the benefit of all its citizens. Assistance from the EU will be made available to help Ukrainian SMEs seize these new opportunities, to grow, and thereby create jobs,” reads the Thursday’s press release of the European Commission quoting Malmström as saying.

The Commissioner adds that the EU businesses will benefit as well by gaining improved access to a market of 45 million people. “The change will not occur over night, it will require work and investment. Gradually, the DCFTA will contribute to a prosperous Ukraine and to stronger economic integration with the EU,” the official said.

Commissioner for European Neighbourhood Policy and Enlargement Negotiations Johannes Hahn added that the DCFTA also opens opportunities for Ukraine beyond the European Union, as the EU standards are often international standards.

The application of the DCFTA of the EU-Ukraine Association Agreement constitutes a milestone in the bilateral relationship, as it will offer new economic benefits to both sides. Ukrainian businesses receive stable and predictable preferential access to the largest market in the world with 500 million customers, while EU businesses will be able to benefit from easier access to the Ukrainian market and build new relationships with Ukrainian suppliers and cooperation partners. This will also be to the benefit of Ukrainian citizens, as they will have better access to high quality products, and increased competition and the lowering of import tariffs should lead to lower prices.

On 1 January 2016, the European Union (EU) and Ukraine will start applying the Deep and Comprehensive Free Trade Area (DCFTA) which forms part of the Association Agreement signed in June 2014. The rest of the Association Agreement, containing political and cooperation provisions, has already been in force since November 2014. With the entry into force of the DCFTA both sides will ensure that markets for goods and services will be mutually opened on the basis of predictable and enforceable trade rules so that new opportunities will be created for the EU and Ukraine businesses, investors, consumers and citizens.

By more closely aligning Ukraine’s regulations with EU legislation, the DCFTA will promote higher quality standards for products and will increase the levels of consumer and environmental protection. Economic cooperation and exchanges will also be enhanced, contributing to increased stability and prosperity for Ukraine.

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