Ukrainian Prime Minister Mykola Azarov said that the free trade area with the European Union (EU) and the Customs Union and the CIS are very important for Ukraine.
“The free trade area with the EU and the Customs Union or the CIS are very important for Ukraine. Our goods turnover for the Customs Union’s countries is over 40%, and for the EU countries – around 30%. Totally, this is a lion’s share of our goods turnover,” he said, speaking at the opening of the fourth International Black Sea Economic Forum at the Livadia Palace on Thursday, October 24.
He noted that Ukraine is to sign an Association Agreement with the EU.
“The Agreement includes a very important economic agreement on the free trade area with the EU,” Azarov said.
He said that under the agreement on the free trade area with the EU, Ukraine receives a chance to have only one import duty on all types of Ukrainian goods to Europe from the first year the agreement is in effect, and this covers 97% of commodity items.
The premier also said that Ukraine retains the certain level of protection during five years, gradually cutting duties to the average level, to around 2.5%.
“With all benefits and implications of our agreement with the EU, the economic benefits for Ukraine in the future are obvious,” he said.
He said that Ukraine’s partners in the CIS and Customs Union have questions in connection with the signing of the Association Agreement with the EU by Ukraine.
“They fear that after opening of our borders, European goods will flow via them to the unprotected market of the Customs Union, as we also have a free trade agreement with the Customs Union’s countries and from 2015 we’ll actually switch to the regime without exceptions and restrictions. Moreover, we’ll receive a chance to have access to the pipelines, gas and oil transport systems under the agreements on a free trade zone. Few persons know about this, but this is stipulated in the agreement. This is a very important condition, which will allow us to receive gas from the Central Asia and other energy using the pipelines of the Customs Union’s countries,” Azarov said.
He also said that there are other advantages of Ukraine’s cooperation with the Customs Union and CIS, in particular, the codification of goods for transport monopolies.
