The Commission denied the myths of Russia on free trade of Ukraine

The European Commission has decided to deny the main theses of Russia about the alleged problems that will cause a free trade agreement between the EU and Ukraine, coming into force on 1 January 2016. Relevant document posted on the website of the Directorate General for trade of the EU, reports the BBC.

The first myth, according to the document of the European Commission, is that Russia allegedly can modify its customs rules without consultation with other countries, which are included in the free trade zone of the CIS. As, for example, under a unilateral abolition of trade preferences on Ukraine. In reality, as noted in the European Commission, Russia should be consulted about changes of tariffs on imports from other countries of the free trade area of the CIS and to show individual products as new circumstances may result in the growth of imports from certain countries, to the detriment of the industry in other countries of the Customs Union.

Russia can not prove the negative consequences of the agreement between Ukraine and the EU because it has not yet entered into force, but suspended the free trade agreement with Ukraine.

The second myth is the requirement of the European Union on compliance with its standards by all goods in the Ukrainian market supposedly would close off this market for Russian goods. Russia calls for delay of transition to the European standards, however, the European Commission noted that according to 24 categories Ukraine has already passed for these standards, and no Russian company complained about the difficulty of exporting to a new environment.

The third myth — the EU allegedly wants to force Russia to change its customs regulations in the framework of the free trade zone of the CIS. In reality Russia, these rules don’t like: in particular, Moscow believes that under existing rules, imported by Ukraine from the EU the goods can get the marking «made in Ukraine» and exported to Russia without duties. The Commission offers Russia to initiate a change in the rules of the free trade zone of the CIS, in order to avoid problematic situations when some of its members will sign a free trade agreement with any other country.

The fourth myth — the EU obliges Russia to adopt their standards of hygiene. In reality, the EU wants to expand bilateral discussion of the standards adopted by each of the parties.

The fifth myth — you can easily «enter a transitional period of not more than 10 years in different sectors of trade», as proposed by Russia. However, the European Commission emphasize that it would be many years retarded the execution of a significant part of the agreement between Ukraine and the EU and hardly would have a positive influence on the export of Russian goods.

The sixth myth is that Russia needs extensive data for each transaction, with regard to the export of goods to Ukraine, and the EU needs to provide this information. The European Commission noted that it would be a violation of the EU rules on data protection, and, in addition, from these data, Russia receives guarantees that imported Ukrainian products were not produced anywhere else.

As reported, the President of the Russian Federation Vladimir Putin has signed a decree on suspension from 1 January 2016 to the Treaty on free trade zone between Russia and Ukraine, which acted within the framework of the free trade zone of the Commonwealth of Independent States (CIS).

However, from 1 January 2016 will begin an Agreement on free trade zone between Ukraine and the European Union. In this regard, the President Petro Poroshenko expressed confidence that the FTA with the EU compensates for the loss of economy of Ukraine from the closure of the Russian market in the coming years.

The Commission denied the myths of Russia on free trade of Ukraine 23.12.2015

Декабрь 23rd, 2015 by
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