Ukraine and GUAM countries-participants inked quadripartite Protocol to enhance cooperation within the limits of Free Trade Area

On March 27, a meeting of heads of governments of member countries of the Organization for Democracy and Economic Development GUAM in the framework of the summit was held in Kyiv. Prime Minister of Ukraine Volodymyr Groysman, Deputy Prime Minister of the Republic of Azerbaijan Ismet Dursun oglu Abasov, Prime Minister of the Republic of Moldova Pavel Filip as well as Prime Minister of Georgia Giorgi Kvirikashvili attended the meeting.

The heads of governments of Georgia, Ukraine, Azerbaijan and Moldova in the framework of the summit signed the Protocol on approval of the Procedure of establishment and activity of the Working Body coordinating the actions of Contracting Parties to the Agreement on the establishment of free trade between the GUAM member states*. On behalf of Ukraine, the document was signed by Nataliya Mykolska, Deputy Minister of Economic Development and Trade of Ukraine/ Sales Representative of Ukraine.

The aforesaid document as well as the Protocol between customs administrations of the States of GUAM member states on the mutual recognition of certain results of customs control of goods and means of transport moving across the state borders of GUAM member states are aimed to create a basis for overall implementation of the relevant free trade agreement. Within the scope of GUAM the issue of introduction of new Rules for determining the country of origin of products to be signed by the end of the year to the Agreement on the establishment of free trade between the GUAM member states has yet to be agreed.

The signed documents are of utmost importance for Ukraine because it is a net exporter country in the framework of GUAM. Thus the backbone of the Ukrainian export to the GUAM member states consists of commodities with high total value.

Background

The agreement on free trade zone between the GUAM countries-participants was signed on 20.07.2002. In 2016 the trade turnover between Ukraine and the countries of GUAM amounted to USD 1628.7 million, export amounted to USD 1266 million as well as import – USD 362.6 million. Stake of the GUAM countries in total trade turnover of Ukraine is 1.9%.

*The GUUAM – this definition is used with regard to the agreement on the establishment of free trade zone between the GUUAM participating states (signed also by Uzbekistan).