Jacques TALLINEAU

1
Trade and trade-related issues in the new
contractual relationships between the EU and
Ukraine elements of continuity and novelties

• Jacques TALLINEAU
• UEPLAC Senior Legal Expert in Internal Market and
  Trade Reform
• Verkhovna Rada
• Kyiv
• 9 April 2009

2
Continuation and novelties in the instruments
governing the trade relationships EU-Ukraine

• AA (replacing the PCA) and implementing Action
  Plan (successor of the EU-Ukraine Action Plan)
• Objectives not met during the previous stage are
  going to be prioritised again in the AA and/or
  the next Action Plan
• New mechanism for the settlement of disputes to
  make effective the commitments undertaken

3
Continuation and novelties in the measures for
trade liberalisation

• AA is a Regional Agreements governed by the GATT
  and other WTO Agreements
• A Deep and Comprehensive FTA to be established
  progressively
• Degree of economic integration with the EU will
  depend on the willingness and the capacity of
  Ukraine to advance reforms

4
Stake in the Internal Market of the EU for
Ukraine?

• The Internal Market is an area without internal
  frontiers in which the free movement of goods,
  persons, services and capital is ensured"
• Initially, provisions on the movement of goods
  represent the dominant part of the FTA
• Negotiation are conducted by taking into
  consideration the likely impact on the Ukrainian
  economy and the State Budget

5
Free movement of goods customs duties

• Customs regime sets out in the AA will replace
  the tariff concessions granted under the General
  System of Preference
• Not a Customs Union and no abolition of border
  controls (customs control, veterinary and
  phyto-sanitary controls, indirect taxation) but
  asymmetric obligations in the relations
  EU-Ukraine
• Gradual reduction of customs duties in Ukraine
  for industrial, agricultural and fishery products
  originating in the EU
• Opening-up of the market of the EU for industrial
  products originating in Ukraine (zero-rate
  duties)
• Community tariff concessions (duty-free access
  with or without tariff quota or gradual reduction
  of customs duties) for imports of agricultural
  and fishery products from Ukraine

6
Free movement of goods - customs procedures

• Prerequisite high level of approximation with
  the EU Customs legislation, in particular
• Rules of origin laid down in the FTA
• Classification of goods Combined Nomenclature
  used by the EU should replace the Harmonised
  System used by Ukraine
• Valuation of goods,
• Conditions close administrative cooperation to
  prevent fraud on the rules of origin

7
Free movement of goods prohibition of
quantitative restrictions on imports and charges
having equivalent effect

• Not a vague commitment because, as far as the AA
  may have the same objectives as the European
  Community to remove technical barriers to trade,
  the case-law of the European Court of Justice
  could apply for the amicable settlement of
  disputes

8
Conditions of legislative approximation to ensure
the free movement of goods

• Gradual approximation of the national
  legislation to the EU legislation (and effective
  implementation and enforcement) concerning the
  following
• EU legislation adopted under the principles of
  the New and Global Approach on the marketing of
  industrial products (with reliance on
  international and European standards which comply
  with essential requirements)
• EU technical regulations (Old Approach)
  chemicals, fertilisers, pharmaceuticals,
  cosmetics, automotive industry, labelling of
  certain industrial products (textiles, footwear,
  crystal glass, etc) and foodstuffs
• Implementation of the principle of mutual
  recognition in non-harmonised sectors
• EU rules on food safety

9
Prospect of an Agreement on Conformity Assessment
and Acceptance of Industrial Products (ACAAs)

• Priorities selected by Ukraine electro-magnetic
  compatibility, low voltage, machinery, simple
  pressure vessels
• Conditions for the conclusion and the entry into
  force of this agreement
• Change in the national legislation concerning the
  categories of products concerned and the various
  modules for the conformity assessment of those
  products
• Adoption of the relevant harmonised standards of
  the EU
• Adoption of the EU legislation on the liability
  for defective products
• Adoption of the EU legislation on the general
  safety of products
• Establishment of a system of market surveillance
  with a mechanism of rapid exchange of information
  on dangerous products
• Participation in the work of the European bodies
  for standardisation, conformity assessment and
  metrology
• Peer review of the quality infrastructure

10
Other trade-related areas of legislative
approximation where are expected far-reaching
commitments of Ukraine

• Competition (especially, state aid control)
• Public Procurement
• Intellectual and industrial property rights
• Company law and corporate accountancy