REGIONAL COOPERATION AND ECONOMIC INTEGRATION

REGIONAL TRADE AGREEMENTS AND REGIONAL COOPERATION
of Ukraine’s regulatory environment to that existing in the EU. This formula will bring the
bilateral relations beyond the existing agreements between the EU and other countries that
do not lay claims to membership (for instance, Chili or the Mediterranean countries).
Negotiations on creation of the free trade zone between Ukraine and the EU officially
started on 18 February 2008. Provisions on the FTZ will become a part of a new enhanced
agreement between Ukraine and the EU. They will specify the legal basis for a free
movement of goods, services, partly work force between Ukraine and the EU, as well as
for a regulatory adjustment aimed at a stage-by-stage integration of Ukraine’s economy
into the EU Common Market.
The second round of negotiations on creation of the EU-Ukraine free trade zone took place
on 23-25 April 2008 in Brussels. In its course the parties agreed a set of areas in which the
first projects of articles be drafted as well as outlined the framework vision of the depth of
the mutual agreements. Agreements shall include definite provisions on creation of a free
trade zone. The stress was made on adaptation and adjustment of Ukrainian legislation to
the acquis communautaire (EU legislation) in the corresponding spheres.
The third round of talks on creation of free trade zone between Ukraine and the EU took
place in Kiev on 7-11 July 2008. The negotiation was a stage-by-stage discussion of the
following issues:
-
-
-
-
-
-
Trade of goods (instruments of trade protection, tariffs, technical bearers in trade,
customs issues ant facilitation of trade);
Sustainable development and trade;
Intellectual property rights (including geographical names);
Trade in services;
Government purchases;
Competition (state assistance, antitrust legislation).
Further to the third round agreements were reached that the EU will consider providing
Ukraine with financial assistance to promote reforms connected with implementation of
the provisions on the FTZ. Besides, the EU informed Ukraine on the work of the EC
on drafting the approaches as to the implementation of norms of regulatory adjustment
considering necessary changes on the institutional and/or on legislative level.
By offering free trade the EU so allows Ukraine to get access to its markets of goods,
services and capital and to get a prospect of economic integration. At the same time
one should not forget about economic interests which the EU will protect while holding
negotiations on the FTZ.
Large producers of agricultural products in France, Spain and Italy are worried about
increased competition with Ukrainian goods; therefore they might demand an exclusion of
agricultural products from the FTZ. Similar concerns are expresses by producers of nonferrous
metals and chemicals in Germany and France.
In this context one should remember about possible consequences of Ukraine-EU FTZ for
39