Ukraine plans to agree to start negotiations with the EU on the updating of the Association Agreement in 2021. This was emphasized by the Deputy Prime Minister for European and Euro-Atlantic Integration of Ukraine Olha Stefanishyna during the public consultations "Updating of the Association Agreement with the EU: needs and expectations of Odesa region's business."

"Ukrainian business, in particular, of Odesa region has more opportunities for trade and investment cooperation with the EU. The Government is working to ensure the Association Agreement help more actively using those opportunities. But there is also a "homework" for business - to assess their own ambitions and give appropriate signals to take them into account by the Government team in forming Ukraine's negotiating position in the framework of renewal of the Agreement," said Olha Stefanishyna.

According to the Deputy Prime Minister, in 2016-2019 the positive dynamics of trade development with the European Union is obvious, which currently is Ukraine's main trading partner with a share of over 41% of total trade in goods. Trade in goods with high added value is growing.

"Tariff quotas are applied to some Ukrainian products, although for some of them we export much more than the quota allows. This testifies to the potential and quality of Ukrainian products that are welcomed on the European market. The decline in foreign trade through the coronavirus is a temporary phenomenon in the world economy. The Government's dialogue with Ukrainian business will allow to prepare an inclusive position of Ukraine that will meet the new ambitions and capabilities of our entrepreneurs," said Olha Stefanishyna.

The Deputy Prime Minister stressed that among the priority areas of Ukraine-EU cooperation are the conclusion of the Agreement on Conformity Assessment and Acceptance of Industrial Products (ACAA), strengthening trade in services, as well as updating the approach to state aid, which should become more flexible and fast in responding to emergencies, such as the fight against COVID-19.

Background

The EU-Ukraine Association Agreement does not provide for quotas that would quantitatively limit the import of goods into the EU. Ukrainian exporters can supply the EU with any volume of European quality goods. Instead, the free trade area provides for the use of tariff quotas for some goods. When the zero duty quota is exhausted, trade continues using standard import duty rates.

In 2020, Ukrainian exporters will use the opportunities of 31 out of 40 tariff quotas. As of August 17, 2020, 8 tariff quotas have already been fully used for: honey, barley groats and flour, processed tomatoes, processed starch, grape and apple juices, corn, products of malt and starch processing, sugar. Tariff quotas are used for: processed cereal products (81.2%), eggs and albumin (75.0%), poultry meat (73.4%), starch (73.3%), malt and wheat gluten (72.2%), eggs and albumin additional (60.4%), bran, waste and leftovers (55.2%), poultry meat additional (53.1%), oats (45.3%), wheat (40.2%) and others.