What will the signing of the agreement on the association of Ukraine with the European Union give?
The signing of the document will open new opportunities for Ukraine.
Today in Brussels, a historic signing of an agreement on the association of Ukraine with the European Union.
Participation in the signing will be the President of Ukraine Petro Poroshenko and the President of the Council of the EU Herman Van Rompuy.
At the same time, the political part of the document was signed with the EU by Prime Minister Arseniy Yatsenyuk back in March this year.
The news service of TSN made its infographic.
What will change after signing the agreement?
- Reducing corruption. Changes will occur in the management of public finances and the planning of the state budget. The functions of the Control and Audit Department and the Accounts Chamber will change.
- Export of goods to the EU. This will allow annually to earn at least 383 million euros in the export of goods.
- Export of services to the EU. Ukrainian will be able to open branches in the EU countries, and Ukrainian investments in the EU will receive additional protection. However, the agreement also establishes restrictions on the export of services.
- Advantages for small and medium business. In Ukraine it will again be profitable to produce goods.
- Social policy and education. An additional four days of leave are introduced. It is forbidden to pay women less than men. The system of primary medical care is being improved. Ukrainian diplomas and qualifications for admission to work are recognized in the EU.
- The environment will become cleaner and safer. New standards of water and air quality are introduced. The methods of monitoring the state of the environment will change.
- Space, science and technology. We will work together to create a European navigation system - a competitor to GPS. EU to use our missile technology.
Consumer rights Protection
Changes, in particular, concern the quality of meat and dairy products. Today 66% of Ukrainian milk does not meet the standards of the European Union. After the signing of the association agreement with the EU, the milk produced in Ukraine must comply with all the requirements and norms of the European Union. In addition, the products should disappear antibiotics and palm oil.
90-95% of livestock companies do not meet the requirements of the European Union because of unsanitary conditions, poor quality food and inadequate storage of products.
After signing an agreement with the EU, food prices should decrease. Thus, prices for hard cheeses will fall by 15%, wine - by 5%, Baltic fish - 15%, etc.
It should not be forgotten that Ukrainians will receive a much larger selection of products on the market due to the import of goods from European manufacturers. At the same time, domestic producers will be able to export their products to European countries.
More rights for buyers
Buyers will receive significantly more rights. It's about replacing the goods after the transaction, cash compensation, etc ..
According to experts, Ukrainian agricultural producers will be able to earn at least 383 million euros annually on exports of their products. Only on the export of poultry producers save up to 52 million euros, without paying duties at the lowest price and high rate.
The sale of grain to the EU countries will earn up to 186 million euros annually.
Only 83.1% of the products are imported into the EU with Ukraine without a fee. At the same time, import duties on European goods will be reduced gradually.
It should be added that the entire process of the output of the product or the whole branch of Ukraine to the European market will take no more than 1.5 years.
Advantages for small and medium business
The signing of an association agreement with the EU encourages the business to work honestly. Thus, traders will receive a reduction in duties on imported goods to zero within five years. In turn, the customs can not change the category of goods to increase customs payments. We should expect and simplify the procedure for passing customs control.
For exporters, the procedure for payment and refund of VAT is simplified.
Ukrainian producers will be able to increase their own production. In particular, safe products will not be certified at all, and goods that pose a threat or are created for children will be more controlled.
The number of inspections and documentation for controllers will also significantly decrease after the signing of the association with the EU.
Protection of the environment
Ukraine will introduce a modern system for monitoring air purity. The enterprises will be forced to install modern treatment facilities, and the land damaged by landfills will be restored.
Companies for 3-5 years will be obliged to invest in the modernization of production. This will control the dispersed dust that causes lung cancer, as well as contaminants that evaporate rapidly. It is the latter that lead to anemia and leukemia.
By production, the owners of enterprises will have the right to choose the way to reduce harmful emissions.
It is worth knowing that, in general, after signing an association with the European Union, Ukraine will itself determine the time for modernization, the money for which will be allocated by the EU. The agreement also guarantees that our state will not become a dump of dangerous garbage or a base for harmful production.
The advantages of the association agreement with the EU over integration into the Customs Union
It should be noted that customs rates with the countries of the Customs Union have already been abolished. Therefore, the Customs Union can not offer anything to Ukraine, except for theoretically cheap gas.
- Sovereignty. Any customs union is a loss of sovereignty. In the case of Ukraine's entry into the Customs Union, rates of duty on Ukrainian products will be determined in Moscow.
- Customs rates. The average weighted duty in Ukraine is 6%, and in the Customs Union - 9%. In case of joining the Customs Union, this will lead to a rise in price of Ukrainian goods.
- Production cooperation. Neither the Customs Union nor the association with the EU prohibits business from cooperating with other partners.
- Markets for sale. The signing of the association agreement will not stop the trade with the Russian Federation.
- Modernization. The customs union does not regulate anything, except trade. Therefore, this will not contribute to the modernization of Ukrainian industry. The EU, in its turn, has clear standards and requirements.
- Gas. There is no contract on gas trade in the Customs Union. In particular, Belarus has not received a discount on gas after integration into the CU.
- Trade with China. Possible integration in the TC will lead to an acceleration and cheaper Chinese products, but the duty will increase.
- The machinations. The rapid creation of the Customs Union led to ill-considered and rush to fraud. So, the smuggling volumes in Russia are growing.
Agreement on association with the EU will be implemented by state structures
In particular, a special organ will be created, which will be responsible for implementing the agreement. The European Commission will also check plans and monitor implementation prior to studying draft laws and orders of the Cabinet. In addition, the European Commission recognizes that the EU normative act has been introduced into Ukrainian legislation. A report on Ukraine's implementation of the provisions will be provided twice a year.
A special mission will be sent to Ukraine, which will check reports on the effectiveness and enforcement of laws. Communication will be conducted not only with representatives of the authorities, but also with public organizations and entrepreneurs.
In the end, if the situation is fulfilled, certain Ukrainian products will be admitted to the European market.
The sooner Ukraine meets the requirements, the faster the benefits will be obtained.