I am pleased to be once again here, in this wonderful SigmaBleyzer conference hall, where I recall with satisfaction my previous contributions to a number of public events together with the U.S.-Ukraine Business Council.
Let me start from the most important issue which is of course, the European integration.
On Sept. 18, the government of Ukraine approved the Association Agreement draft. his brings us to the final stage of a long way towards the conclusion of the agreement.
We hope that in less than a month, on Oct. 21 in Luxembourg, the EU Council will take a positive decision on signing and the provisional application of the Association Agreement.
The agreement itself will be the most powerful incentive for strengthening common European values in Ukraine. We see it also as the best systemic mechanism of resolving all pressing issues on the Ukraine-EU agenda both of political and economic nature.
A possibility of provisional application is perhaps the most attractive feature of this Agreement. Ukraine and the European Union may provisionally apply the free trade articles of the agreement, its rules of the economic and sectoral cooperation, as well as the section on political dialogue – after the signature and the completion by the EU institutions of respective internal procedures. There would be no need to wait for the agreement’s ratification by the national parliaments of all EU member states to apply those provisions.
And this means both business community and consumers will reap the fruits of the agreement relatively soon.
The Deep and Comprehensive Free Trade Area (DCFTA) will not only lead to mutual market opening but will also bring business and investment environment in Ukraine in accordance with the European standards.
DCFTA means approximation of Ukrainian legislation with the EU standards, in particular in such important sectors as services, energy, environmental protection, transport, nuclear power, financial sector and information society.
Free trade area with the EU will speed up the internal reforms, will improve Ukraine’s investment attractiveness and increase competitiveness of the national products. Most visible changes we expect to see in agriculture and food industry, in metallurgy, chemicals, light industry, and in services, including transport.
The benefits of the DCFTA are obvious to the Ukrainian business community and to the foreign investors, as it opens significant medium- and long-term opportunities for the international investments in the Ukrainian economy.
The Association Agreement will give a boost to Ukraine’s trade not only with the EU, but also with the United States. Big businesses in the U.S. show particular interest in signing this document as it will be a signal to expand investments in our country.
We were pleased to know that Business Europe, the main horizontal business organisation at EU level, together with the Federation of employers of Ukraine intend to issue a declaration of support for the Ukraine-EU DCFTA in the runup to Vilnius.
As we approach Vilnius, of particular importance are Ukraine’s relations with Russia, which remains our largest trading partner. I am confident that there is no alternative to frank and constructive dialogue with the Russian partners about benefits and challenges of the EU-Ukraine free trade area.
The United States is one of the key Ukraine’s partners in the sphere of trade and investments. We are witnessing a significant progress in the energy sphere where Ukraine-U.S. cooperation is the most intense… as well as in agriculture and aviation.
The State Aviation Administration of Ukraine supported by the U.S. Federal Aviation Administration, received an upgrade of Ukraine’s safety rating to Category One. This allows us to increase the number of flights between our countries.
There are also some issues to be resolved in the Ukraine – U.S. trade relations. Ukraine will continue addressing the issue of protection of international property rights. The Cabinet of Ministers approved a resolution to start the process of software legalization in public institutions. The regulation also includes measures to improve the collection and distribution of royalties, substantial measures to combat counterfeit audio and video products, as well as other measures to fight piracy.
Paul Samuelson, an economics guru of the past century, used to say that “investing should be more like watching paint dry or watching grass grow”.
We all need patience and sobriety in these extremely important months. When Ukraine’s association with the EU becomes a fact, everybody will be rewarded, including many sitting here in this conference hall.
Let us work together to make our dreams a reality, in the interest of all.
Leonid Kozhara is Ukraine’s foreign minister.
