№ 10/2018

Fìnansi Ukr. 2018 (10): 7–27

FINANCIAL AND ECONOMIC INTEGRATION OF UKRAINE INTO THE EU

BOHDAN Tetiana ¹

¹NGO “Growford Institute”
OrcID ID : https://orcid.org/0000-0002-6133-5336

Free trade area between Ukraine and the EU: new rules, risks and opportunities

The article highlights initial achievements and potential positive impact of the implementation of the Association Agreement (AA) and free trade area between Ukraine and the EU, among which the most notable are the Ukraine’s exports growth to the EU’s market and improvements to regulatory framework for national business. On the basis of the detailed analysis of the AA’s provisions, the asymmetric character of the agreement across some important dimensions of trade relations is shown . In particular, it is suggested that 1) AA’s limitations related to tariff quotas (imposed on the export of agrarian products from Ukraine) negatively affect the development of domestic agriculture and food industry; 2) the asymmetric AA’s character in terms of trade in services does not allow Ukraine to rely on a substantial rise in exports of services (in fact, the lists of limitations related to launching business activity and cross-border provision of services for Ukrainian suppliers are wide and strictly regulated). With regard to domestically driven impediments to the EU-Ukraine partnership, the author finds that the adoption of the EU’s technical standards by Ukrainian producers and needed modernization of the national industries are not consistent with the monetary policy carried out by the National Bank of Ukraine and extremely high interest rates at the domestic financial market. Presented applied research is based on the qualitative methods, most significant of which are observations and generalizations. The author draws a set of urgent tasks for the economic policy aimed at mitigating the problems specified and providing a successful economic integration of Ukraine with the EU.

Keywords:association agreement, free trade area, tariff quotas, trade liberalization, legislative approximation

JEL: F13, F50, K33

BOHDAN T. . Free trade area between Ukraine and the EU: new rules, risks and opportunities / T. . BOHDAN // Фінанси України. - 2018. - № 10. - C. 7-27.

Article original in Ukrainian (pp. 7 - 27)

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