The Association Agreement makes provision for protection of Ukraine’s automotive manufacturers during 15 years after a free trade area under the agreement will be established. Specifically, Ukraine will be allowed to use measures equivalent to the existing import duty of 10% on passenger cars in that period. However, those measures will also contribute to high prices for passenger cars and slow down the process of replacement of obsolete vehicles in Ukraine.
The above material is a part of a series of short informational materials, developed by the Institute for Economic Research and Policy Consulting (IER), about the potential impact of implementation of the AA on the Ukrainian economy. The purpose of the publication is to explain the content of the AA, because a number of comments on the topic have emerged recently, but their authors have often described the content of the agreement incorrectly.
