On January 16, the Government authorized the First Vice Prime Minister/Minister of Economic Development and Trade of Ukraine Stepan Kubiv to sign the Protocol between the Government of Ukraine and the Government of Georgia on amendments to the Free Trade Agreement of 9 January 1995.
Amendments to the Agreement will enable Ukraine and Georgia to apply identical rules of origin for goods in bilateral trade and apply the provisions of the Regional Convention on pan-Euro-Mediterranean preferential rules of origin (PEM Convention), in particular the effect of diagonal cumulation. It should be noted that from January 1, 2019, Ukraine began to apply the provisions of the PEM Convention in trade with the European Union.
"Amendments to the Free Trade Agreement with Georgia will enable us to create the first active triangle of diagonal cumulation of EU-Ukraine-Georgia," Stepan Kubiv said. "In practice, this means that Ukrainian producers will be able to import raw materials and components from Georgia, recycle them in Ukraine and export, for example, to Germany with Ukrainian certificates of origin with zero or preferential duty rates. PEM Convention is one of the tools for changing the emphasis of international trade with exports mainly of raw materials for the export of more high-tech products with value added that is being formed in Ukraine. "
The First Vice Prime Minister added that the application of the PEM provisions to the Ukrainian-Georgian trade would create more favorable conditions for Ukrainian exporters, for example, producers of juices and juice concentrates.