Ukraine

Relation: 
Entry into force: 
01 June 2012

The Free Trade Agreement concluded with Turkey was the first among EFTA’s network of Free Trade Agreements. The Agreement between the EFTA States and Turkey was signed in Geneva, Switzerland, on 10 December 1991

Summary

The EFTA-Ukraine Free Trade Agreement has a comprehensive coverage, including trade in goods (industrial and processed agricultural goods, fish and other marine products), trade in services, investment, protection of intellectual property rights, government procurement and provisions on competition.
Bilateral arrangements on agricultural products between the individual EFTA States and Ukraine also form part of the instruments establishing the free trade area between both sides.

Content of the Free Trade Agreement

The main Agreement consists of 10 Chapters, 15 Annexes and a Protocol covering the following subjects:
 

  • Trade in Goods 
  • Services 
  • Investment 
  • Intellectual Property Rights 
  • Government Procurement 
  • Competition 
  • Institutional Provisions 
  • Dispute Settlement

 

Trade in Goods

Industrial goods originating in Ukraine, including fish and other marine products, will benefit from duty-free access to the markets of the EFTA States as of the entry into force of the Agreement (Chapter 2). For such products originating in the EFTA States and imported into Ukraine, most customs duties will be zero from the entry into force as well, while the majority of the others will progressively be dismantled over transitional periods of up to 10 years
(Annexes III and IV).

The rules of origin and the methods of administrative cooperation set out in the Protocol on Rules of Origin and its seven Appendices are based on the Pan2 Euro-Mediterranean model text. This will allow for cumulation of materials originating in the EFTA States, Ukraine and the other “Pan-Euro-Med” member countries once the respective agreements are in place between those countries and Ukraine.

The Agreement provides for tariff concessions on processed agricultural products (Annex II). Tariff concessions on basic agricultural products are covered by the bilateral agricultural agreements, which are part of the instruments establishing a free trade area between the Parties.

The Agreement includes provisions on trade facilitation (Annex V). Furthermore, it includes provisions on sanitary and phytosanitary measures, technical regulations, state trading enterprises, subsidies, trade remedies and exceptions, in conformity with the relevant WTO Agreements.

 

Services

The Chapter on trade in services (Chapter 3) closely follows the WTO General Agreement on Trade in Services (GATS). It covers trade in all services sectors under all four modes of supply, with the exception of air traffic. Separate annexes on financial services (Annex IX) and on telecommunications services
(Annex X) complement the Chapter with additional disciplines that are of specific relevance to these sectors. The Parties’ specific commitments and MFN Exemptions are contained in Annexes VII and VIII respectively.

 

Investment

Chapter 4 aims to improve the legal framework conditions for investors from EFTA and Ukraine investing in each other’s markets in sectors not covered by the chapter on trade in services. The Agreement provides both for nondiscriminatory market access for direct investments and for fair, equitable and non-discriminatory treatment of existing investments. For a few areas, the Parties have lodged reservations based on restrictions in their national legislation (Annexes XI and XII).

 

Intellectual Property Rights

The Agreement contains a comprehensive Chapter and Annex on intellectual property rights (Chapter 5 and Annex XIII) covering all fields of IPR as well as measures relating to enforcement. The Chapter is based on the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) and includes certain improvements and clarifications with respect to TRIPS.

Government Procurement

The Agreement provides for access to the Parties’ government procurement markets on a reciprocal basis. While the principles can be found in Chapter 6, more detailed provisions are contained in Annex XIV and the list of covered entities, thresholds and other country-specific provisions in Annex XV.

The relevant provisions stipulate what procedures must be followed by government entities which are procuring goods, services and construction services above a certain threshold. The provisions are closely aligned with the revised WTO Agreement on Government Procurement, adapted to reflect the specific interests of the Parties.

 

Competition

The Parties recognise that anti-competitive business practices have the potential to undermine the benefits of liberalisation arising from the Agreement and highlight the importance to cooperate on issues relating to competition law enforcement (Article 7).

 

Institutional Provisions and Dispute Settlementreview of the Agreement

The Agreement establishes a Joint Committee, which supervises and administers the Agreement and oversees its further development (Chapter 8). The Joint Committee may take decisions in cases provided for by the Agreement and make recommendations in other matters.

Chapter 9 contains rules and procedures for the settlement of disputes arising from the Agreement between one or more EFTA States and Ukraine.

Review of the Agreement

The Parties will review the Agreement within three years after the entry into force of the Agreement to examine the possibility of further developing and deepening their cooperation. The review will, inter alia, take into account developments in international economic relations in the framework of the WTO and free trade relations with third countries (Article 10.3).

Annexes and Record of Understanding
Trade in Goods Annex I Excluded Products    
  Annex II Processed Agricultural Products    
  Annex III Fish and Other Marine Products    
  Annex IV Customs Duties on Imports    
  Annex V Trade Facilitation    
  Annex VI Mandate for the Sub-Committee on Rules of Origin, Customs Procedures and Trade Facilitation    
  Protocol Rules of Origin Appendix 1 Introductory Notes
      Appendix 2 List Rules
      Appendix 3 A Movement Certificate EUR.1
      Appendix 3 B Movement Certificate EUR-MED
      Appendix 4 A Invoice Declaration
      Appendix 4 B Invoice Declaration EUR-MED
      Appendix 5 List of Countries
Trade in Services Annex VII Schedules of Specific Commitments Appendix 1 Ukraine
      Appendix 2 Iceland
      Appendix 3 Liechtenstein
      Appendix 4 Norway
      Appendix 5 Switzerland
  Annex VIII List of MFN Exemptions Appendix 1 Ukraine
      Appendix 2 Iceland
      Appendix 3 Liechtenstein
      Appendix 4 Norway
      Appendix 5 Switzerland
  Annex IX Financial Services    
  Annex X Telecommunications Services    
Investment Annex XI Reservations Appendix 1 Ukraine
      Appendix 2 Iceland
      Appendix 3 Liechtenstein
      Appendix 4 Norway
      Appendix 5 Switzerland
  Annex XII Reservations by the Kingdom of Norway    
IPR Annex XIII Protection of Intellectual Property    
Government Procurement Annex XIV Standards for Procurement Systems    
  Annex XV Covered Entities    

 

Joint Committee Decisions
Decision Subject Adopted Entry into force
 2013
No. 1/2013 Rules of Procedure    29.05.2013 29.05.2013
Joint Declaration on Cooperation
Officer
Trade Relations Division

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