No large inflow of European goods to Ukraine from Jan 1 to be seen
The deep and comprehensive free trade area (DCFTA) between Ukraine and the European Union took effect on January 1, 2016, although it is not expected that a large inflow of European goods to the Ukrainian market will be seen, the press service of the Economic Development and Trade Ministry of Ukraine has reported, referring to Deputy Minister Natalia Mykolska.
"The Economic Development and Trade Ministry jointly with the National Bank of Ukraine (NBU) have drawn up a forecast on the development of the Ukrainian market after the Ukraine-EU DCFTA takes effect. According to our information, there will not be any collapse of the Ukrainian goods market and the large inflow of European goods," she said.
She said that zero duties will be introduced only for 70% of all imported goods, and the transition periods or the restriction regimes will be effective for the rest of goods. Another reason is the hryvnia devolution: Ukrainian goods are cheaper and they are competitive compared to European goods.
According to the ministry, from January 1, 2016, the zero rates are introduced for industrial and agricultural goods, processing and food industries. In addition, the symmetric revoking of imports duties by Ukraine and the EU is seen for textile, confectionary, chemical sectors, seeds, some grain crops, fruit, dry fruit, condiments and other plant products.
The tariff liberalization for the EU will be carried out during three years (some types of fish products, shoes, pipes and other goods), five years (phone, radio equipment, lenses for cameras and other goods) and seven years (video recording equipment, motor vehicles, fertilizers and other goods).
In turn, Ukraine will reduce imports duty during the transition period: three years for hats, umbrellas, paving stone blocks and other goods, five years for tableware, equipment for washing, tractors and other goods, seven years for crane trucks, drilling trucks, vehicles with electric engines and other goods, and ten year for passenger cars.
"Thanks to the tariff liberalization cheaper European goods will appear on our market… This will stimulate Ukrainian producers to improve their goods – increase quality and pay attention to marketing," Mykolska said.
