European Commission Cuts Tariff For Ukrainian Exports To The EU

by Benson Agoha

The European Union has announced, as temporary measure, tariff cuts for imports coming in from Ukraine.

In an official statement by the European Commission Head Quarters in Brussels today, the EU said it is adopting temporary tariff cuts for Ukrainian exports to the EU.

Releasing the Statement, EU Trade Commissioner Karel De Gucht said he was pleased that the European Union Foreign Affairs Council has agreed to adopt the recommendation.

He said "I'm very pleased that the EU's Foreign Affairs Council has today adopted the Commission's proposal for autonomous trade measures providing tariff preferences for Ukraine."

* EU Trade Commissioner Karel De Gucht: Ukraine does not have to reciprocate EU gesture, but should not raise its tariff.

De Gucht said the decision not only expresses the EU's solidarity with the Ukrainian people, but also shows that the EU is willing and capable to take immediate steps to improve the situation of our Eastern neighbours.

The EC statement said today's decision follows the European Parliament's overwhelming support for this proposal at its plenary session of 2-3 April.

"The regulation can now be signed into law in the coming days, a record under the ordinary legislative procedure," it said.

 

The statement said the trade preferences, will apply from the end of April and will remove about half a billion euros of EU customs tariffs a year in favour of Ukraine exports to the EU.

 

"They cover 94.7% of current EU tariffs imports of industrial goods from Ukraine and all EU tariffs on Ukraine’s agricultural produce exports to the EU," it said, adding that only a limited number will be cut within quantitative limits or quotas.

 

Karel De Gucht  said the trade measure will be an important component of the EU's package to help Ukraine during this difficult period and that Ukraine does not need to reciprocate by removing its own customs duties on imports from the EU, although it must not raise them.

 

He said "Ukrainian exports will, of course, have to comply with EU rules on origin labelling and the Ukrainian authorities will have to ensure that third country goods disguised as Ukrainian ones don't enter the EU via Ukraine."

 

Warning that the concession can be reevaluated if it is abused or found unfavourable to the EU, the EU Chief said "The measure also entitles the EU to reintroduce tariffs if imports from Ukraine flood the EU market in volumes that cause, or threaten to cause, serious difficulties to EU producers of the same goods."

 

Trade and economic assistance was at the heart of the disagreement between former Ukrainian President Vviktor Yanukovych and other Ukrainian leaders as he moved to align Ukraine closer to Russia than join the European Union.

 

"In the medium and long term, only the complete trade deal will modernise Ukraine's economy and build the trade ties to Europe that offer a brighter economic and stable future for all Ukrainians," the EU statement said.

 

* Follow me on Twitter: @bensonagoha or @woolwichonline.