EU – Ukraine Association Agreement: One year later…
Nataliya V. Koloskova
The EU – Ukraine International Legal Forum, which was held by Yuridicheskaya Practika Publishing on 24 September 2015 in Kiev, has become an extensive platform for discussing issues on political association and economic integration between Ukraine and EU a year after ratification of the Association Agreement. Up to 200 participants and 35 speakers considered a wide spectrum of issues, like free trade between Ukraine and the EU, export of agricultural products to the EU, business in Europe, Ukraine as a business location for European entrepreneurs and dispute settlement.
The forum kicked off with an open panel discussion between representatives of central state authorities and domestic business.Nataliya Mykolska, deputy minister of Economic Development and Trade of Ukraine — Commercial representative of Ukraine, mentioned that the EU is the largest trade partner of Ukraine and spoke on evolution of change of the EU role in Ukrainian foreign trade of commodities and services and structure of export from Ukraine to the EU. Amongst challenges Ukraine could face in the context of closer cooperation with the EU she named trade embargo, rise in entrance duties and the trade war with the Russian Federation, intensification of competition pressure and ousting of producers from the home market, necessity for re-equipping enterprises and the shortage of funds for modernization. While prospects Ukrainian business could see are entry into the largest world market, growth of circle of potential customers, search for new partners, diversification of export, re-equipping and modernization of enterprises as well as decrease in non-tariff restrictions.
Vladyslava Rutytska, deputy minister of Agrarian Policy and Food of Ukraine on European Integration, spoke about the position of agriculture in export to the EU. She reported that the part of the EU in the common structure of foreign trade of agricultural products comes to 30%. In 2015, for the first time in the framework of independent trade preferences Ukraine exported sugar, starch, oat, malt and eggs to the EU. She added that EU standard demands are high; however they guarantee high safety and quality of production as well as the possibility to trade not only across the EU but also with other international markets. Hence introduction of a free trade area between Ukraine and the EU gives agrarians the opportunity to expand the assortment of export commodities.
Anna Vronskaya, deputy minister of Ecology and Natural Resources of Ukraine on European Integration, paid attention on importance of implementation of “green” Directives and regulations of the EU. She pointed out that Ukraine’s implementing of the system of trade in emissions will provide business with big opportunities. Finally, the deputy minister appealed to the legal community to take active participation in developing ecology policy.
Olena Zerkal, deputy minister for Foreign Affairs of Ukraine for European Integration, noted the importance of issues regarding sustainable development. The enactment of the agreement entails Ukraine to fulfill its commitments to adopt environmental acquis.
Anna Artemenko, authorized government official of the Antimonopoly Committee of Ukraine, spoke on establishment of an effective and transparent system of protection of competition as one of the conditions of free trade. Amongst the main directions for implementation of competition issues she drew attention to introducing basic principles by force on improving the normative legal basis in the competition sphere, institutional ability of competitive agency, establishing a system of monitoring and control over the state aid to businesses and advocacy of competition.
Yuri Kushnir, managing partner of Kushnir, Yakymyak & Partners, confirmed that foreign companies look rather with restraint at investment to Ukraine. Certain large foreign companies leave our country, therefore there is a niche for small and medium European business to move manufacturing here, and thereafter it is an additional option for Ukrainian businessmen.
Olena Omelchenko, international trade law lawyer of Ilyashev & Partners, highlighted peculiarities of protecting trade interests. She named instruments of trade protection originated from the Association Agreement and spoke on multilateral WTO rules on trade protection. The speaker also referred to present measures by the EU with respect to Ukrainian commodities and vice versa to measures by Ukraine with respect to European commodities.
Within the session dedicated to effective export to the EU as citing by agriculture examples, Oleksandr Polivodskyy, partner of Law Firm Sofiya, contributed on the EU requirements to the export of agrarian production and legislation of Ukraine. Thus, he carried out comparative analysis of EU legislation regarding food and the relevant Ukrainian legislation. In his opinion harmonization of both legal systems is important for Ukraine because EU requirements are accepted in many other countries.
Svitlana Kalitsun, legal counsel of Lansky, Ganzger + Partner, presented to the audience the peculiarities of the Austrian regulatory system (corporate, licensing law, real estate, taxation, and especially migration law) in the network of the section devoted to doing business in Europe. A detailed description was given of the organizational legal forms of entities in Austria, and the contributor dwelled on the advantages and complications of business development in this EU state.
Within the framework of the court session, Sergii Koziakov, chairman of the High Qualification Commission of Judges of Ukraine, and Ihor Benedysiuk, chairman of the High Council of Justice of Ukraine, spoke on judicial reform as a way of Eurointegration, while Mykola Selivon, president of the International Commercial Arbitration Court and the Maritime Arbitration Commission at the Ukrainian Chamber of Commerce and Industry, highlighted the topic of development of arbitration in the light of theAssociation Agreement.
