FTA agreement to give new opportunities to stabilize Ukraine's economy – European Commission
On January 1, 2016, the European Union (EU) and Ukraine will start applying the Deep and Comprehensive Free Trade Area (DCFTA) which forms part of the Association Agreement signed in June 2014, the European Commission said in a communiqué issued in Brussels on Thursday.
The Commission recalled that the rest of the Association Agreement has already been in force since November 2014.
"The application of the DCFTA of the EU-Ukraine Association Agreement constitutes a milestone in the bilateral relationship, as it will offer new economic benefits to both sides. Ukrainian businesses receive stable and predictable preferential access to the largest market in the world with 500 million customers, while EU businesses will be able to benefit from easier access to the Ukrainian market and build new relationships with Ukrainian suppliers and cooperation partners," the communique reads.
According to the European Commission, this will also be to the benefit of Ukrainian citizens, as they will have better access to high quality products, and increased competition and the lowering of import tariffs should lead to lower prices.
Besides, approximation to the EU legislation in areas such as competition, government procurement, and protection of intellectual property rights, the agreement will contribute to the modernization and diversification of the Ukrainian economy and will create additional incentives for reform, notably in the fight against corruption.
The DCFTA will thus offer an opportunity to Ukraine to improve its business climate and to attract foreign investment, helping Ukraine to further integrate with the world economy, the Commission said.
"The entry into force of this trade area on January 1, 2016 creates unique opportunities for Ukraine to stabilize, diversify and develop its economy to the benefit of all its citizens," the commission quoted EU Trade Commissioner Cecilia Malmström as saying.
At the same time, she added that the change "will not occur over night, it will require work and investment."