FEATURES OF FREE TRADE MODE UNDER THE FREE TRADE AGREEMENT BETWEEN UKRAINE AND CANADA (CUFTA), THE BENEFITS OF UKRAINE CONTRACTING THE FREE ZONE TRADE AGREEMENT WITH OTHER COUNTRIES
Journal Title: «Приватне та публічне право» - Year 2017, Vol 4, Issue
Abstract
Free Trade Agreement (FTA) is an important and effective tool for integrating the economies of the countries into the global economy, a mechanism for advancing and protecting the economic interests of the states, simplifying the procedure for access to external markets, increasing investment and many other benefits for the growth of the economic potential capability of the countries. Today it is more important for Ukraine than ever to use all legal and economic mechanisms and interstate ties to promote goods and services of national commodity producers to external markets, which in the long run should provide Ukraine with strategic advantages as a significant player with significant potential in world markets, as well as as a reliable and promising partner in the global economy. Ukraine has already taken a lot of actions to develop integration processes and protect its own economic interests in world markets. As of today, FTA agreements have been concluded with such states as: Montenegro, Macedonia, Georgia, Azerbaijan, Uzbekistan, Tajikistan, Turkmenistan, Canada, as well as with the European Free Trade Association (EFTA) and the CIS countries. It should be noted that this process is gaining momentum and in the near future shall be concluded FTA agreements with Turkey and the State of Israel. On August 1, 2017 the FTA Agreement between Ukraine and Canada (CUFTA) came into force, which is mutually beneficial for the states that concluded it, however, Ukraine has been provided with more preferences than Canada, including wider time limits for the abolition of import duties. The main advantage of concluding the CUFTA is that Ukrainian exporters immediately received duty-free access to 98% of the Canadian market, mainly to agricultural and industrial goods. The CUFTA provides for zero duty rates for all agricultural products, besides 108 tariff lines that can be exported without customs within Canada's global tariff quotas, namely poultry, dairy products, eggs and egg products, cheese and sugar, some grains. The greatest benefits of cancellation of duties will be provided to Ukrainian manufacturers of clothing (cancellation fee of 17.2%) and footwear (9.7%), machinebuilding (5.6%) and chemical industries (4.5%), as well as farmers ( 4.5% for vegetables and fruits). The fees for the remaining 27% will be abolished gradually with a transitional period of three, five and seven years. Within the CUFTA, Ukraine and Canada reaffirmed their obligations under the Agreement on Technical Barriers to Trade in the WTO, provided for a transparent mechanism for the development and implementation of technical regulations and conformity assessment procedures. It should be noted that the CUFTA regulates non-tariff barriers to trade. This is due to distinguishing feature between Canadian and Ukrainian requirements in the areas of product quality and safety, marking, certification, etc., which could be a source of unjustified restrictions on free trade. The terms of the CUFTA stipulate quick and effective mechanisms for the urgent protection of Ukraine's domestic market from the negative factors of the free trade zone. For example, during the transition period, a temporary increase in customs duties is possible in order to prevent significant damage to Ukrainian producers. The terms of the CUFTA grant entrepreneurs from both participating countries the opportunity to participate in public procurement procedures. Ukraine’s accession to the Regional Convention on Pan-Euro-Mediterranean Preferential Rules of Origin (PanEuro-Med), which establishes unified rules of origin for trade in goods in the pan-Euro-Mediterranean region, will become one of Ukraine’s most important integration steps in the global economy. On October 12, 2017 the corresponding bill was submitted to the Verkhovna Rada by the President of Ukraine. This step deepens the economic integration and trade relations of Ukraine with other countries, increases commodity turnover and allows the export of goods at preferential tariff rates. Participation in the Pan-Euro-Med convention will allow Ukrainian producers to procure raw materials and components in the countries of the European Free Trade Association (EFTA) or, in the Mediterranean countries, and export finished products to the EU while retaining preferential status. The possibility of Ukraine joining the Convention is stipulated by the provisions of the Association Agreement between Ukraine and the EU. Ukraine’s accession to this instrument of regional cooperation is expected to increase the opportunities for preferential exports of domestic products to promising markets, accompanied by greater use of production potential, opening of new opportunities for cooperation in trade between the parties, including by involving in the regional and international chains of added value creation, as well as increase the volume of foreign direct investment and will facilitate the opening of new production facilities. The main advantages for Ukraine from concluding FTA agreements with other countries can be defined as follows: − expansion of markets of national commodity producers’ production and increase of their competitiveness in world markets; − Ukraine's integration into the global economy; − attraction of additional foreign investments, technological and energy resources; − strengthening of international economic relations. Therefore, it can be argued that FTA agreements are one of beneficial and effective legal mechanisms aimed at protecting the state’s economic interests, improving business conditions in the country, which provides a solid basis for further sustainable economic development of the state and the enrichment of its nation
Authors and Affiliations
І. М. , Товкун
Keywords
Related Articles
- EP ID EP444572
- DOI -
- Views 98
- Downloads 0
PROSPECTS FOR LABOUR COURTS IN UKRAINE
The author of the article believes that a qualifying division of labour disputes into the disputes over rights and disputes over interests should become an important issue of formation and development of labour justice i...
SOME FEATURES OF LAND LEGAL RELATIONS REGULATION BY THE RULES OF LAND AND CIVIL LAWS
The article describes the land legal relations as the subject of the land area of law. It is indicated that the land relations, including land disputes, in today’s environment constitute quite a large part of the public...
COMPARATIVE ANALYSIS OF SOCIAL SUPPORT AND WARRANTIES OF THE NATIONAL POLICE: INTERNATIONAL AND NATIONAL EXPERIENCE
Police officers are serving under conditions that often lead to ill health, nervous shock, psychological and physical overload. Social guarantees for police officers are a legal mechanism that should compensate for these...
SOME ASPECTS OF REFORMING THE PROTECTION SYSTEM OF LEGAL ADVOCACY GUARANTEES
The article deals with issues related to the reform of the current system of advocacy of Ukraine and the legally established guarantees of professional advocacy. It is substantiated that the urgent need for implementatio...
THE CONCEPT OF RESEARCH INSTITUTIONS IN UKRAINE
In the article the features of the activity of scientific research institutions, scientific approaches to the definition of the concept of «system» and «system of research institutions» are investigated. It is noted that...