EU, Ukraine Cut Trade Taxes Through New Free Trade Deal
On January 1, 2016, the tariff cuts contained in the Deep and Comprehensive Free Trade Area (DCFTA) between the European Union and Ukraine became effective.
Welcoming the deal, the European Commission said the application of the DCFTA of the EU-Ukraine Association Agreement constitutes a milestone in the bilateral relationship, as it will offer new economic benefits to both sides.
It said Ukrainian businesses will receive stable and predictable preferential access to the largest market in the world, with 500 million customers, while EU businesses will be able to benefit from easier access to the Ukrainian market and build new relationships with Ukrainian suppliers and cooperation partners. This will also be to the benefit of Ukrainian citizens, as they will have better access to high quality products, and increased competition, and the lowering of import tariffs should lead to lower prices, it said.
European Commissioner for Trade Cecilia Malmström said: “The entry into force of this trade area on January 1, 2016, creates unique opportunities for Ukraine to stabilize, diversify, and develop its economy to the benefit of all its citizens. Assistance from the EU will be made available to help Ukrainian SMEs seize these new opportunities, to grow, and thereby create jobs. EU businesses will benefit as well by gaining improved access to a market of 45 million people. The change will not occur over night; it will require work and investment. Gradually, the DCFTA will contribute to a prosperous Ukraine and to stronger economic integration with the EU.”
The EU and Ukraine signed the Association Agreement with its Deep and Comprehensive Free Trade Area on June 27, 2014. The whole Association Agreement with its Deep and Comprehensive Trade Area will fully enter into force as soon as the ratification procedures in all 28 member states will have been finalized. General provisions and parts of the political and cooperation association chapters are already being applied provisionally since November 2014, to which the trade related provisions (the DCFTA) are now being added from January 1, 2016, onwards.
EU exports to Ukraine amounted to EUR17bn (USD18.4bn) and Ukrainian exports to the EU equaled EUR14bn in 2014.
Source: Tax-News – EU, Ukraine Cut Trade Taxes Through New Free Trade Deal
