November 8, the Verkhovna Rada of Ukraine adopted the bill, which was voted for by 231 MPS, on Ukraine’s accession to Regional Convention on pan-Euro-Mediterranean preferential rules of origin (PEM Convention).
The PEM Convention is an instrument developed by the European Union which is made up of a network of Free Trade Agreements and provides for identical rules of origin allowing for diagonal cumulation between the contracting parties. Participation of Ukraine in the said Convention will facilitate the creation of conditions for trade facilitation and increase of Ukrainian exports. It will also boost the presence of domestic goods in the markets of third countries with which free trade agreements have been concluded, namely the EU, the EFTA states, Montenegro, Moldova, and Macedonia.
"Ukrainian companies create unique products that are appreciated by consumers all over the world. This shapes additional competitive advantages for producers and opens up better opportunities for exporters. Accession to the Convention will allow enterprises to take full advantage of the uniqueness of Ukrainian goods in the European market, thereby increasing their own earnings and improving their own competitive positions in the world," noted First Vice Prime Minister / Minister of Economic Development and Trade of Ukraine Stepan Kubiv.
Once the President signs the bill, the Ministry of Foreign Affairs will submit all necessary documents to the depositary of the Convention - the General Secretariat of the Council of the EU.
The accession shall take effect from the first day of the second month following the deposit of the instrument of accession. Starting from May of this year, Ukraine has already participated in the work of the Convention bodies as an observer.
"Ukraine's accession to Regional Convention on pan-Euro-Mediterranean preferential rules of origin diversifies our exports both geographically and in terms of the basket of goods - the volume of deliveries to the EU market will increase. The process of joining the Convention offers opportunities for business persons to plan their activities for the future, because exports are an opportunity to realize profit for them and for the country", stressed Nataliya Mykolska, Deputy Minister of Economic Development and Trade of Ukraine/ Sales Representative of Ukraine, during the session of the Parliament.