Accord association UE Ukraine

Accord association UE Ukraine

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EU-Ukraine Associaton Agreement “Guide to the Associaton Agreement” ++++ Background: Relatons between the EU and Ukraine are currently based on the Partnership and Co-operaton Agreement (PCA) which entered into force in 1998. At the Paris Summit in 2008 the leaders of the EU and Ukraine agreed that an Associaton Agreement should be the successor agreement to the Partnership and Co-operaton Agreement. The EU-Ukraine Associaton Agreement (AA) is the frst of a new generaton of Associaton Agreements with Eastern Partnership countries. Negotatons on this comprehensive, ambitous and innovatve Agreement between the EU and Ukraine were launched in March 2007. In February 2008, following confrmaton of Ukraine’s WTO membership, the EU and Ukraine launched negotatons on a Deep and Comprehensive Free Trade Area (DCFTA) as a core element of the Associaton Agreement. At the 15th Ukraine-EU Summit of 19 December 2011, the EU leaders and President Yanukovych noted that a common understanding on the text of the Associaton Agreement was reached. On 30 March 2012 the chief negotators of the European Union and Ukraine initalled the text of the Associaton Agree - ment, which included provisions on the establishment of a DCFTA as an integral part. In this context, chief trade ne- gotators from both sides initalled the DCFTA part of the Agreement on 19 July 2012.

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EU-Ukraine Associaon Agreement “Guide to the Associaon Agreement”
++++Background: Relaons between the EU and Ukraine are currently based on the Partnership and Co-operaon Agreement (PCA) which entered into force in 1998. At the Paris Summit in 2008 the leaders of the EU and Ukraine agreed that anAssociaon Agreementshould be the successor agreement to the Partnership and Co-operaon Agreement. TheEU-Ukraine Associaon Agreement(AA) is the first of a new generaon of Associaon Agreements with Eastern Partnership countries. Negoaons on this comprehensive, ambious and innovave Agreement between the EU and Ukraine were launched in March 2007. In February 2008, following confirmaon of Ukraine’s WTO membership, the EU and Ukraine launched negoaons on aDeep and Comprehensive Free Trade Area (DCFTA)as a core element of the Associaon Agreement. At the 15th Ukraine-EU Summit of 19 December 2011, the EU leaders and President Yanukovych noted that a common understanding on the text of the Associaon Agreement was reached. On 30 March 2012 the chief negoators of the European Union and Ukraine inialled the text of the Associaon Agree-ment, which included provisions on the establishment of a DCFTA as an integral part. In this context, chief trade ne-goators from both sides inialled the DCFTA part of the Agreement on 19 July 2012. Both EU and Ukraine expressed their common commitment to undertake further technical steps, required to prepare conclusion of the Associaon Agreement.
++++Polical associaon and economic integraon: The Associaon Agreement will constute a new stage in the development of EU-Ukraine contractual relaons, aiming atpolical associaon and economic integraonand leaving open the way for further progressive developments. The AA provides for a shared commitment to a close and lasng relaonship, based on common values, in parcular full respect for democrac principles, rule of law, good governance, human rights and fundamental freedoms. >Wide range of sector cooperaon: Thisambious and pioneering Agreement is a concrete way to exploit the dynamics in EU-Ukraine relaons, focusing on support to core reforms, on economic recovery and growth, governance and sector co-operaon in more than 30 areas, such as energy, transport, environment protecon, industrial and small and medium enterprise (SME) cooperaon, social development and protecon, equal rights, consumer protecon, educaon, training and youth as well as cultural cooperaon. >Trade and Trade related maers (DCFTA): Closereconomic integraon through the DCFTA will be apowerful smulant to the country’s economic growth. Approximaon of Ukraine to EU legislaon, normsand standards, will be the method. As a core element of the Associaon Agreement, the DCFTA willcreate business opportunies in both the EU and Ukraine and will promote real economic modernizaonand integraon with the EU. Higher standards of products, beer services to cizens, and above allUkraine’s readiness to compete effecvely in internaonal markets should be the result of this process. >Mobility:The importance of the introducon of a visa free travel regime for the cizens of Ukraine in due course, 1
provided that the condions for well-managed and secure mobility are in place is recognised in the Agreement.
++++Content of the Associaon Agreement The EU-Ukraine Associaon Agreement counts in total over 1200 pages and comprises of > APreamblean introductory statement of the Agreement, seng out the Agreement’s purpose and asunderlying philosophy; >Seven Titleswhich concern General Principles; Polical Cooperaon and Foreign and Security Policy; Jusce Freedom and Security; Trade and Trade related maers (DCFTA); Economic and Sector Cooperaon; Financial Cooperaon with An-Fraud Provisions, as well as Instuonal, General and Final Provisions; > 43Annexesseng out EU legislaon to be taken over by a specific date and > ThreeProtocols. The Associaon Agreement in a nut-shell: > The AA aims toaccelerate the deepening of polical and economic relaonsbetween Ukraine and the EU,as well as Ukraine’s gradual integraon in the EU Internal Market including by seng up a DCFTA. > The AA is a concrete way to exploit the dynamics in EU-Ukraine relaons, focusing on support to corereforms, on economic recovery and growth, governance and sector co-operaon. > The AA constutes alsoa reform agenda for Ukraine, based around a comprehensive programme of Ukraine’s approximaon of its legislaon to EU norms, around which all partners of Ukraine can align themselves and focus their assistance. > The AA negoaons werenot a stand-alone exercise: EU assistance to Ukrainelinked with the reform isagenda as it emerges from the result of negoaons. The Comprehensive Instuonal Building Programme (CIB) is parcularly important in this regard.
++++Preamble ThePREAMBLEa selecon of the most important areas/facts pernent to EU-Ukraine relaons. It sets out the is ambion for a close and lasng relaonship. Although it has a non-binding introductory character, it presents important references to common values and could be perceived as a “scene-seer” for the Agreement. The elements which are set out in the Preamble include among others: > A reference tocommon valueson which the EU is built – namely democracy, respect for human rights and fundamental freedoms, and rule of law – and which are shared by Ukraine. > A reference that Ukraine is recognised as aEuropean countrywhich shares a common history and common values with the Member States of the EU. > A reference to theEuropean aspiraons of Ukraine. The EU welcomesUkraine’s European choice, including its commitment to build deep and sustainable democracy and a market economy. > An acknowledgement that thepolical associaon and economic integraonUkraine with the EU will of depend on progress in the implementaon of the Associaon Agreement as well as Ukraine’s track record in ensuring respect for common values, and progress in convergence with the EU in polical, economic and legal areas.
++++ Title I:General Principles Title Idefines the general principles which will form the basis for the domesc and external policies of the Associaon between the EU and Ukraine namely: >Respect for democrac principles, human rights, fundamental freedoms and the rule of law.>Thepromoon of respect for the principles of sovereignty and territorial integrity, inviolability of borders and independence, as well as countering the proliferaon of weapons of mass destruconare set out. Moreover, the principles of afree market economy, good governance, the fight against corrupon, the fight against differ-ent forms of trans-naonal organised crime and terrorism, the promoon of sustainable development as well as effecve mullateralismare central to enhancing the relaonship between the EU and Ukraine and will underpin their relaonship.
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++++ Title II:Polical dialogue and reform, polical associaon, cooperaon and convergence in the field of foreign and security policy InTitle II, the Associaon Agreement foresees the intensificaon of the EU-Ukraine polical dialogue and cooperaon in view of gradual convergence in the area of Common Security and Foreign Policy (CSFP) as well as Common Security and Defense Policy (CSDP). > Title II covers issues such as theaims of polical dialogue, dialogue and cooperaon on domesc reform as well as foreign and security policy. > The Agreement foresees severalfora for the conduct of polical dialogue: the EU-Ukraine Summit willpresent the highest level of polical dialogue. At ministerial level the dialogue will be conducted within the Associaon Council. The polical dialogue will aim inter alia:  >>todeepen polical associaonand increase polical and security policy convergence and effecveness;  >>to promoteinternaonal stabilityand security based on effecve mullateralism;  >>to strengthen cooperaon and dialogue oninternaonal security and crisis management, notably in  orderto address global and regional challenges and key threats;  >>to foster result-oriented and praccal cooperaon for achievingpeace, security and stability on the Europeanconnent;  >>to strengthen respect fordemocrac principles, the rule of law and good governance, human rights andfundamental freedoms, including the rights of persons belonging to naonal minories,  non-discriminaonof persons belon ing to minories and respect for diversity, and to contribute to consolidangdomesc polical reforms. > Title II dedicates a specific arcle on theInternaonal Criminal Courtand calls on the cooperaon of the EU and Ukraine in promong peace and internaonal jusce by rafying and implemenng the Rome Statute of the Internaonal Criminal Court and its related instruments. ++++ Title III:Jusce, Freedom and Security Title III coversissues concerning the rule of law and respect for human rights; protecon of personal data; cooperaon on migraon, asylum and border management; treatment of workers; mobility of workers; movement of persons; money laundering and terrorism financing; cooperaon on the fight against illicit drugs; the fight against crime and corrupon; cooperaon in fighng terrorism and legal cooperaon. > The EU and Ukraine commit through the Associaon Agreement to increase theirdialogue and cooperaon on migraon, asylum and border management. The importance of the introducon of a visa free travel regime for the cizens of Ukrainein due course, provided that the condions for well-managed and secure mobility are in place is recognised in the Agreement > The commitment tocombang organised crime and money laundering, to reducing the supply of and demand for illicit drugs and to stepping up cooperaon in the fight against terrorism is also reflected in the Agreement. > The wish to enhancepeople-to-people contactsis explicitly set out. ++++ Title IV:Trade and Trade-Related Maers The EU is Ukraine’s main commercial partner and accounts for 31% of its external trade, ahead of Russia (2010). Closer economic integraon through the DCFTA will be a powerful smulant to the country’s economic growth. As a core element of the Associaon Agreement, the DCFTA will create business opportunies in Ukraine and will promote real economic modernizaon and integraon with the EU. Higher standards of products, beer services to cizens, and above all Ukraine’s readiness to compete effecvely in internaonal markets should be the result of this process. >Hence theDCFTA Title IVthe Associaon Agreement is dedicated to Trade and Trade Related Maers. of Through a Deep and Comprehensive Free Trade Area economic integraon is envisaged. >The DCFTA, linked to the broader process of legislave approximaon will contribute to further economic integraon with the European Union’s Internal Market. This includes the eliminaon of almost all tariffs and barriers in the area of trade in goods, the provision of services, and the flow of investments (especially in the energy sector). Once Ukraine has taken over the relevant EU acquis, the EU will grant market access for example in areas such as public procurement or industrial goods. >The DCFTA will provide for a conducive new climate for economic relaons between the EU and Ukraine. New 3
trade and investment opportunies will be created and compeon will be smulated. All these elements are factors crucial to economic restructuring and modernisaon. As regards the impact of a removal of customsdues entailed by the DCFTA, experience has shown that this short-term loss of import charges will bemore than compensated for by the increased revenue received by the state from indirect taxes paid bycompanies seizing new market opportunies and by the general boost to the economy. The budget spending on legal and instuonal reforms in trade-related areas is or will be supported by the EU along with funds fromInternaonal Financial Instuons. The DCFTA once in force will provide tariff cuts which will allow theeconomic operators of both sides to save around 750 millions euros per year in average (most of the customs dues being liſted) ++++ Title V:Economic and sector cooperaon Title V comprises 28 chaptersthe fields of energy cooperaon; macro-economic cooperaon; management of in public finances; taxaon; stascs; environment; transport; space; cooperaon in science and technology; industrial and enterprise policy; mining and metals; financial services; company law, corporate governance, accounng and auding; informaon society; audio-visual policy; tourism; agriculture and rural development; fisheries and marime policy; Danube river; consumer protecon; cooperaon on employment, social policy and equal opportunies; public health; educaon, training and youth; culture, sport and physical acvity; civil society, cross-border and regional cooperaon; parcipaon in European Agencies and Programmes, based ongradual approximaon with the EU acquisand also – where relevant – with internaonal norms and standards. ++++ Title VI:Financial cooperaon, with an-fraud provisions The European Union and its Member States connue to be the largest donor to Ukraine: since 1991, assistance provided by the European Union alone has amounted to over €2.5 billion. The European Neighbourhood Policy Instrument (ENPI) allocates € 470 million to Ukraine for the years 2011-2013. This goes to support acon in three priority areas: good governance and the rule of law; facilitang the entry into force of the Associaon Agreement, and sustainable development, including energy and environment. This amount includes funding under the Eastern Partnership for theComprehensive Instuon Building programme43.37 million). The laer is designed to (€ improve the administrave capacity of partner countries and their compability with EU instuons, for instance through twinning programmes, professional training and secondment of personnel. > Ukraine will benefit from EU Financial Assistance through exisng funding mechanisms and instruments in order to achieve the objecves of the Associaon Agreement. > The future priority areas of the EU Financial Assistance to Ukraine will be laid down in relevant indicaveprogrammes reflecng agreed policy priories between the EU and Ukraine. The indicave amounts ofassistance will take into account Ukraine’s needs, sector capacies and progress with reforms. > EU assistance will be implemented in close cooperaon and coordinaon with other donor countries,donor organisaons and Internaonal Financial Instuons (IFI), and in line with internaonal principles of aideffecveness. Through the Neighbourhood Investment Facility (NIF), to which Ukraine is eligible IFIinvestments could be leveraged. The NIF aims at mobilising addional funding to cover the investmentneeds of Ukraine for infrastructures in sectors such as transport, energy, the environment and social issues (e.g. construcon of schools or hospitals). > The Agreement lays down that the EU and Ukraine will take effecve measures to prevent and fight fraud, corrupon and any other illegal acvies. ++++Title VII:Instuonal, general and final provisions The Associaon Agreement foresees a tailor-made instuonal set up for EU-Ukraine relaons. > At thetop level, the EU-Ukraine Summit will be established: The Summit will present the highest level of polical dialogue and will be a plaorm for meengs between Presidents. >At ministerial level, the dialoguewill be conducted within the Associaon Council which could meet in any configuraon. The Associaon Council will have the power to take binding decisions. > The Associaon Council will be assisted in the performance of its dues by anAssociaon Commiee.The Associaon Commiee will create Subcommiees to implement sector cooperaon. Meeng in a special format, the Associaon Commiee will address the specific DCFTA issues. > The Associaon Agreement also foresees a parliamentary dimension, notably by establishing aParliamentary Associaon Commiee. It will be a forum for Members of the European Parliament and the 4
Parliament of Ukraine to meet and exchange views. > Another important element of the Associaon Agreement is the promoon of regular civil societymeengs. Hence, a dedicatedCivil Society Plaorm willbe established. The Plaorm will be able to makerecommendaons to the Associaon Council. In order to ensure the correct implementaon of the Associaon Agreement, the Agreement texts sets out some general and final provisions. A selecon of these provisions is set out below: > One key provision underpinning the Associaon Agreement sets out the concept ofgradual approximaon of Ukraine’s legislaon to EU norms and standards. Specific melines are set within which Ukraine shouldapproximate its legislaons to the relevant EU legislaon. These melines vary between 2 and 10 years aſter the entry into force of the Agreement. > Another guiding provision sets out the concept ofdynamic approximaon. There was a need to set outthis concept as the EU law and legislaon is not stac but under constant evoluon. Thus the approximaon process will be dynamic and should keep pace with the principal EU reforms, but in a proporonate way, taking account of Ukraine’s capacity to carry out the approximaon. > In order to examine whether the commitments as set out in the Associaon Agreement are met,dedicated provisions related tomonitoringwere included in the Agreement. Monitoring means here to supervisethe applicaon and implementaon of the Associaon Agreement, its objecves and commitments. It is a connuous appraisal of progress in implemenng and enforcing measures and commitments covered bythe Associaon Agreement. This monitoring process will be of a parcular importance for the DCFTA as its posive result will be the prerequisite of any further market opening for the Ukrainian economic operators > Monitoring will include theassessmentsof approximaon of Ukraine’s legislaon to the EU acts (and where applicable internaonal instruments) as defined in the Associaon Agreement. > The Associaon Agreement also sets out aDispute Selement Mechanism. This mechanism would come into effect if obligaons under the Associaon Agreement are not fulfilled by one of the Agreement Pares. For the DCFTA part, another binding trade specific Dispute Selement Mechanism is set out in form of a dedicated protocol. This trade specific mechanism is inspired by tradional WTO dispute selement mechanism. > Theduraon ofthe EU-Ukraine Associaon Agreement is unlimited. At the same me the Pares willundertake a comprehensive review of the achievement of objecves under the Agreement within five years. It should be noted that the text of the AA will be drawn up in 22 EU Member States languages as well as in Ukrainian.
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