What will the signing of an association agreement between Ukraine and the European Union give?
The signing of the document will open up new opportunities for Ukraine.
Today in Brussels will be the historic signing of the Association Agreement between Ukraine and the European Union.
President of Ukraine Petro Poroshenko and President of the Council of the EU German Van Rompuy will take part in the signing.
Moreover, the political part of the document was signed with the EU by Prime Minister Arseniy Yatsenyuk in March this year.
TSN News Service compiled its infographic.
What will change after signing the agreement?
- Reduction of corruption. Changes will occur in public finance management and budget planning. The functions of the Audit Office and the Audit Chamber will change.
- Export of goods to the EU. This will make it possible to earn at least 383 million euros annually in the export of goods.
- Export of services to the EU. Ukrainian will be able to open branches in the EU countries, and Ukrainian investment in the EU will receive additional protection. However, the agreement also sets restrictions on the export of services.
- Benefits for small and medium-sized businesses. In Ukraine, it will again become profitable to produce goods.
- Social policy and education. An additional four days of vacation are introduced. It is forbidden to pay women less than men. The primary health care system is being improved. Ukrainian diplomas and qualifications for admission to work are recognized in the EU.
- The environment will be cleaner and safer. New standards for water and air quality are being introduced. Environmental monitoring methods will change.
- Space, science and technology. We will work together to create a European navigation system - a competitor to GPS. The EU to use our rocket technology.
Consumer rights Protection
The changes, in particular, relate to the quality of meat and dairy products. Today, 66% of Ukrainian milk does not meet EU standards. After signing the association agreement with the EU, milk produced in Ukraine must comply with all the requirements and standards of the European Union. In addition, antibiotics and palm oil should disappear in production.
90-95% of livestock companies do not meet the requirements of the European Union due to unsanitary conditions, poor quality feed and inadequate storage of products.
After signing an agreement with the EU, food prices should drop. Thus, prices for hard cheeses will fall by 15%, wines - by 5%, Baltic fish - 15%, etc.
We should not forget that Ukrainian 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 have the opportunity to export their products to European countries.
More rights for buyers
Buyers will receive significantly more rights. We are talking about the replacement of 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 the export of their products. By exporting poultry meat alone, producers save up to 52 million euros by not paying duties at the lowest price and highest rate.
Selling grain to EU countries will earn up to 186 million euros annually.
Only 83.1% of the products are imported into the EU with Ukraine without duty. At the same time, duties on imports of European goods will decrease gradually.
It should be added that the entire process of entering a product or an entire industry of Ukraine into the European market will take no more than 1.5 years.
Benefits for SMEs
Signing an association agreement with the EU encourages businesses to work honestly. Thus, traders will receive a reduction in duties on imported goods to zero within five years. In turn, customs will not be able to change the category of goods in order to increase customs payments. It should also be expected to simplify the procedure for customs clearance.
For exporters, the procedure for paying and refunding VAT is simplified.
Ukrainian manufacturers will be able to increase their own production. In particular, safe products will not be certified at all, and products that are dangerous or created for children will be more controlled.
After signing the association with the EU, the number of checks and documentation for controllers will also significantly decrease.
Ukraine will introduce a modern air purity control system. Enterprises will be forced to install modern treatment facilities, and land spoiled by landfills will be restored.
Companies of 3-5 years will be obliged to invest in the modernization of production. This will allow control of particulate dust that causes lung cancer, as well as pollutants that evaporate quickly. It is the latter that lead to anemia and leukemia.
By production, the owners of enterprises will have the right to independently choose a method of reducing harmful emissions.
It is worth knowing that in general, after signing the association with the European Union, Ukraine will determine the time for modernization itself, the money for which the EU will allocate. The agreement also guarantees that our state will not become a dumping ground for hazardous waste or a base for hazardous production.
Advantages of an Association Agreement with the EU over Integration into the Customs Union
Note that customs rates with the countries of the Customs Union have already been canceled. Therefore, the Customs Union can not offer anything to Ukraine, except theoretically cheap gas.
- Sovereignty. Any customs union is a loss of sovereignty. If Ukraine joins the Customs Union, duty rates on Ukrainian products will be determined in Moscow.
- Customs rates. The weighted average duty in Ukraine is 6%, and in the Customs Union - 9%. In the case of entry into the vehicle, this will lead to a rise in price of Ukrainian goods.
- Production cooperation. Neither the Customs Union, nor the association with the EU prohibit the business from cooperating with other partners.
- Sales markets. The signing of an association agreement will not stop trade with the Russian Federation.
- Modernization. The customs union regulates nothing but trade. Therefore, this will not contribute to the modernization of Ukrainian industry. The EU, in turn, has clear standards and requirements.
- Gas. There is no gas trade agreement in the Customs Union. In particular, Belarus did not receive a gas discount after integration into the CU.
- Trade with China. Possible integration into the vehicle will lead to faster and cheaper Chinese goods, but the duty will increase.
- Frauds. The rapid creation of the Customs Union led due to lack of thought and a rush to fraud. So, smuggling volumes in the Russian Federation are growing.
Association Agreement with the EU will be implemented by government agencies
In particular, a special agency will be created that will be responsible for the implementation of the agreement. The European Commission will also check plans and monitor implementation until the draft laws and orders of the Cabinet of Ministers are examined. In addition, the European Commission recognizes that the EU regulation has been introduced into Ukrainian law. A report on Ukraine’s compliance will be provided twice a year.
A special mission will be sent to Ukraine, which will check reports on the effectiveness and implementation of laws. Communication will be conducted not only with representatives of the authorities, but also with public organizations and entrepreneurs.
As a result, if the situation is fulfilled, certain Ukrainian products will be allowed on the European market.
The sooner Ukraine fulfills the requirements, the faster the benefits will be received.