The Association Agreement (AA) makes provision for gradual elimination of customs duties on machinery and equipment, including electronic equipment, in the bilateral trade between the EU and Ukraine. Cancellation of Ukraine’s customs duties will lead on the one hand to an increase in competition in the domestic market for machinery and equipment. On the other hand it will push down prices for investment goods in Ukraine, which will be beneficial for all sectors of Ukrainian economy.
Elimination of EU customs duties will facilitate export of Ukrainian equipment to the EU. In addition, the AA makes provision for harmonization of Ukraine’s laws with the EU acquis. This will facilitate conclusion of Agreements on Conformity Assessment and Acceptance of Industrial Products between the EU and Ukraine, which will also have a positive impact on exports from 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.
