The Ukrainian government has approved a draft of the Association Agreement between Ukraine and the European Union, the press service of the Cabinet of Ministers.
Prime Minister of Ukraine Mykola Azarov at a session of the government called the main risk of signing an agreement with the European Union while the modernization of the economy. "The main risk is that for the modernization of the economy need huge resources and time. For example, to save the Ukrainian automotive industry, we need 3-5 years to a radical modernization ahead of the curve, competitive products at a lower cost than European manufacturers," — he said.
"To do this, Ukraine has the resource base, large energy facilities, skilled workers, metal, electrical, plastic and rubber production. But we need drastic retooling of the whole production chain that ends with a car assembly", — said Mykola Azarov.
At the same time, he said, a deep and comprehensive free trade area will create a unique opportunity to accelerate the modernization of the Ukrainian economy. "These opportunities need to properly use it. And this we have 10 years of transition. During this time, the entire Ukrainian industry has to do a lot of work on the implementation of European standards and technical regulations, fundraising, and the search for partners and investors to modernize production "- said the Prime Minister.
Azarov went even further, Foreign Minister of Ukraine Leonid Kozhara. At a press briefing, he said that it was after the signing of the agreement with the EU in Ukraine will begin major reforms, which are provided by the contract.
Recall Ukraine for a long time to choose between EU and the Customs Union with Russia, Belarus and Kazakhstan, to the creation of which at one time had a hand and Mykola Azarov. The Russian side strongly pressed on Kiev. For example, Dmitry Medvedev said that the association with the EU, Ukraine will close the way to the vehicle. "This is a key policy choices," — said the head of the Russian government.
Vladimir Putin, in turn, said that he respects any choice of Ukraine, but warned that Moscow will think about protecting its own market. "We will be forced to close," — said the President of the Russian Federation.
In turn, Ukrainian experts called recent scandals involving restriction of access of goods to the Russian market for a variety of reasons "blackmail" by the Kremlin, calling on the government not to give in to threats and choose the "European" way of development.
The EU, as a rule, concludes an association agreement in exchange for the commitment of the political, economic, trade and judicial reforms. In exchange, the associated state may receive duty-free access to some or all EU markets, the market of agricultural products, etc., as well as financial or technical assistance. The Association Agreement can include a free trade agreement between the EU and a third country. It has to be ratified by all the states — members of the EU.
In recent history, such agreements were signed in the framework of the two policies EU Stabilisation and Association Process and the European Neighbourhood Policy. State of the Balkan Peninsula, in the first part. The second policy applies to the Mediterranean countries and the countries of Eastern Europe.
The signing of the Association Agreement between Ukraine and the European Union is scheduled for November 2013.
FTA with the EU in the first year will cancel the import duties on Ukrainian products — Azarov
In the case of the signing of the Agreement on
The Prime Minister
"According to the agreements, trade liberalization covers more than 97 percent of tariff lines, or more than 95 percent of the volume of bilateral trade between the parties. In addition, the abolition of import duties, which now operate in the European Union with regard to Ukrainian goods, will be held in the first year of the agreement, "- said the head of government.
However, he said that while the average rate of duties in Ukraine will fall for the goods from the European Union in half — from 4.95% to 2.42%. At the same time, the average EU rate of fees for Ukrainian goods decreased by 15 times — from 7.6% to 0.5%.
Azarov also said that the main changes for 99% of Ukrainian goods that are shipped to the EU, will take place in the first year of the Agreement. At the same time, the fee for the goods from the EU to Ukraine will decline gradually over four years.
"Thus the Ukrainian producers will get a temporary advantage and a chance to increase the competitiveness of their products not only in the EU but also in the markets of third countries," — said the Prime Minister.
At the same time, he stressed that additional growth is expected mainly due to economic activities such as agriculture, food processing, textile and leather segments of light industry, metallurgy and metal processing, machinery, transport and legal services and the like.