EU-Ukraine DCFTA
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EU – Ukraine Deep and Comprehensive Free Trade Area

The Deep and Comprehensive Free Trade Area (DCFTA) is part of the Association Agreement (AA) between the EU and Ukraine, one of EU's the most ambitious bilateral agreements. The DCFTA offers Ukraine a framework for modernising its trade relations and for economic development by the opening of markets via the progressive removal of customs tariffs and quotas, and by an extensive harmonisation of laws, norms and regulations in various trade -related sectors, creating the conditions for aligning key sectors of the Ukrainian economy to EU standards.

The key elements of the DCFTA:

Market Access for Goods
It aims to remove customs duties on imports and exports. The vast majority of customs duties on goods will be removed as soon as the Agreement enters into force. For industrial goods it foresees the immediate removal of existing tariffs on most products, with exceptions for a few for which a transition period exists. For agricultural goods, ambitious concessions have been made taking into account specific sensitivities. Thus, duty-free tariff rate quotas been granted to the Ukraine for cereals, pork, beef, poultry and a handful of additional products, while for others the progressive elimination by the EU of the custom duties will occur over a longer transition period (generally 10 years). This means that for particularly sensitive sectors, the DCFTA gives producers more time to adapt to a more competitive environment while offering consumers a wider choice of products at lower prices.
As regards non-tariff barriers (NTB) on trade in goods, the Agreement incorporates fundamental WTO rules on NTBs.

Trade Remedies
It covers traditional trade defence instruments (anti-dumping, anti-subsidy and global safeguard). WTO rights and obligations will be applied to ensure fair treatment.

Technical barriers to trade
It aims to reduce obstacles to trade arising from Technical Barriers to Trade (TBT): technical regulations, standards, conformity assessment procedures and similar requirements. Ukraine has progressively adapt its technical regulations and standards to those of the EU.


Sanitary and phytosanitary (SPS) measures
It covers facilitation of trade in SPS related goods including animals, animal products, plants and plant products, whilst safeguarding the Parties' level of protection.

Customs and trade facilitation
This chapter seeks to enhance cooperation in customs and customs-related matters and to simplify customs requirements and formalities, while at the same time preventing fraud.

Establishment, trade in services and electronic commerce
The chapter aims to integrate Ukraine as much as possible into the
EU market. Unlike classical FTAs, it provides for both the freedom of establishment in services and non-services sectors, subject to limited reservations, and the expansion of the internal market for a set of key services sectors once Ukraine effectively implements the EU - acquis.


Current payments and movement of capital
Provisions on free movement of capital will include standard safeguards with a possibility to apply measures to ensure the stability of the financial system.

Public procurement
Ukraine will, over several years, adopt current and future EU legislation on public procurement. With the exception of defence procurement, Ukrainian suppliers and service providers will have full access to EU public procurement markets, and EU suppliers and service providers will have the same to the Ukrainian procurement market. The chapter is an unprecedented example of the integration of a Non-EEA-Member into the EU Single Market.

Intellectual property
This chapter includes provisions on particular copyright, designs (including unregistered ones), patents and geographical indications (GIs) which complement and update the TRIPS Agreement. The chapter has a strong section on enforcement of IPRs based on the EU's internal rules.

Competition
Here, the Parties prohibit and sanction certain practices and transactions which could distort competition and trade. Anti-competitive practices such as cartels, abuse of a dominant position and anti-competitive mergers will be subject to effective enforcement action.


Trade-related energy
This is the first FTA to include specific provisions on trade related energy issues. The chapter takes into account that Ukraine is already a member of the Energy Community Treaty (EnCT), which imposes an obligation to implement the most relevant EU energy acquis on electricity and gas. The chapter covers electricity, crude oil and natural gas (in gaseous state or as LNG), its provisions being subject to dispute settlement procedure.

Transparency
The Chapter sets out:
    - Commitments allowing interested parties to comment on proposed regulations.
    - The establishment of enquiry or contact points to respond to questions arising from the application of regulations.
    - Due process requirements regarding administrative proceedings, including the review or appeal of administrative actions in areas covered by the FTA.

Trade and sustainable development
Key elements of the Trade and Sustainable Development Chapter include for instance: Shared commitment to the core labour standards of the International Labour Organisation (ILO) and the ILO Decent Work Agenda; Commitment to implement all multilateral environment agreements to which the EU and Ukraine are party, and to promote sustainable management of forestry and fisheries.

Dispute Settlement
The Dispute Settlement mechanism is based on the model of the WTO Dispute Settlement Understanding, but with faster procedures.

Mediation mechanism
A mediation mechanism allows Parties to tackle adverse effects on trade in goods. The aim is not to review a measure's legality, but to find a quick and effective solution to market access problems. The Parties will be assisted by a mediator they have jointly chosen or selected by lot from an agreed list.

Protocol I - Rules of origin
Rules of origin define the 'economic nationality' of products needed to determine the duties applicable to them when traded. In the DCFTA, the rules are based on the usual criteria.

Protocol II-Mutual administrative assistance in customs matters
It sets out a legal framework for cooperation between the Parties' competent authorities in tackling customs irregularities and fraud.

Protocol III-Protocol on a Framework Agreement between the European Union and Ukraine on the General Principles for the Participation of Ukraine in Union Programmes.

    It sets out core principles for Ukraine's financial contribution and participation in monitoring current and future EU programmes.
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