EU-UKRAINE ASSOCIATION AGREEMENT: DEAL HAS BEEN SIGNED!!

The EU-Ukraine Association Agreement (AA) signed today by Ukrainian President Petro Poroshenko in Brussels is unprecedented in terms of ambition and depth. It lays the foundation for political association and economic integration between the EU and Ukraine and will make the modernization of the state based on European model a legal obligation.

The FTA with Ukraine is "deep and comprehensive", that is it includes liberalization of trade not only in goods but also services, liberalization of capital movement and to a certain extent, movement of labor force. It also conditions a comprehensive adaptation of European regulatory legislation in the areas of transport, energy, services, agriculture and so on by Ukraine. It unifies a significant share of legal frameworks of the two parties, eliminates non-tariff (technical) barriers in trade and provides enhanced access to the EU Single Market for Ukrainian exporters and vice versa: European exporters will gain access to the Ukrainian market.

The EU-Ukraine AA is based on the recognition of Ukraine's European identity. This spirit of kinship and geographical proximity plays not the least role in a gradual deep integration in key sectors, since in a number of practical areas such as energy security or transportation capabilities, the capacities of non-European countries are much more limited compared to the potential offered to Ukraine.

A successful implementation of the AA will mean compliance with membership criteria, therefore, improving the quality of life, modernization of all spheres of state and society, improving competitiveness of Ukrainian producers and more. This is the goal of European integration and not EU membership per se. The agreement will allow Ukraine to reach a level of development, where further progress towards EU membership becomes a matter of political expediency.

Thanks to the DCFTA Ukrainian manufacturers will be able to win a place in the "wealthy" European market, find its niche and promote high-quality Ukrainian products at the European market – at a good price. Domestic consumers, in turn, will have access to high-quality European goods in Ukraine at lower prices.

The early years of adaptation to deep and comprehensive free trade area will be difficult. This is not surprising, because the systemic transformation always leads to short-term losses. However, the fact of the AA signing will significantly increase the investment attractiveness and FDI inflows, which will help to offset the current trade deficit with the EU.

The reformation of Ukraine in accordance with the terms of the Association Agreement with the EU is in the best interests of all parties, including Russia: it is about growing confidence in Ukraine as an international partner and strengthening the rule of law and predictability as the basis for the confidence of all, including Russian, investors.

Moreover, under the DCFTA Ukraine can become a vital trade link and economic bridge between Brussels and Moscow, and later a unique platform for the development of mutually beneficial relations between the EU and members of new integration projects at the post-Soviet area.

The Association Agreement with the EU provides explicit legal and political guarantees of sovereignty, independence and territorial integrity of the Ukrainian state.