This study examines modern state of economic relations between Ukraine and the EU, describes current negotiations on a deep and comprehensive free trade area. Special attention is paid to the costs and benefits of implementation of EU’s acquis communautaire in the field of corporate law and competition policy, liberalization of capital flows, regulation of financial intermediation and harmonization of environmental standards. Comparative analysis of certain free trade agreements with EU participation is an important part of the study.
TABLE OF CONTENTS
| FOREWORD | 3 |
| LIST OF ABBREVIATIONS | 7 |
| ACKNOWLEDGEMENTS | 8 |
| 1. INTRODUCTION | 9 |
| 2. CURRENT UKRAINE-EU ECONOMIC RELATIONS: BRIEF OVERVIEW | 11 |
| 2.1. Trade in goods and services, and capital mobility | 11 |
| 2.2. Personal mobility | 15 |
| 3. CURRENT EU-UKRAINE TRADE REGIME AND ONGOING FTA NEGOTIATION | 18 |
| 3.1. Trade regime | 18 |
| 3.2. Ongoing EU-Ukraine FTA negotiations | 20 |
| 4. STOCK TAKING ON IMPLEMENTATION OF EXISTING TRADE-RELATED COMMITMETS | 23 |
| 4.1. Brief overview of Ukraine’s WTO commitments | 23 |
| 4.2. Brief overview of Ukraine’s progress in the implementation of the European Neighbourhood Policy | 27 |
| 5. COSTS AND BENEFITS OF HARMONIZING ACROSS THE CHAPTERS OF THE ACQUIS | 32 |
| 5.1. FTA: ‘menu of options’ for Ukraine | 33 |
| 5.2. Costs and benefits of the implementation of company law | 37 |
| 5.3. Costs and benefits of the implementation of competition policies | 45 |
| 5.4. Costs and benefits of capital flows libarelisation | 53 |
| 5.5. Costs and benefits of financial intermediation integration (implementation of Basel II) | 59 |
| 5.6. Costs and benefits of harmonisation across environmental standards | 63 |
| 6. HOW CAN A TYPICAL AGREEMENT WITH THE EU BE IMPROVED UPON | 71 |
| 6.1. Concise overview of economic/trade areas offered by the EU in typical FTA | 71 |
| 6.2. How can the typical agreement be improved to fit Ukraine’s interests | 75 |
| CONCLUSIONS | 77 |
| REFERENCES | 79 |
| ANNEX A | 83 |
