Ukraine sets its sights on free-trade deal

Date: 07/09/00

By Simon Taylor

UKRAINE is hoping to strike a free-trade agreement with the Union as part of its long-term approach towards becoming a full member of the bloc.

Speaking ahead of the EU-Ukraine summit in Paris next Friday (15 September), the country's new Ambassador to the Union, Roman Shpek, told European Voice: "Our strategic goal remains to move from cooperation with the European Union to integration."

Shpek highlighted that the European Commission had agreed to cooperate with Kiev in identifying the reforms needed to get Ukraine ready for an accord. "The external relations directorate-general has said that it would help prepare a road map for a free-trade area," he added.

But he acknowledged that the EU was not be prepared to expand the number of countries being considered as future members at this stage. Until the Union changed its mind, he said, Ukraine would pursue a gradual process of qualifying as a candidate by building on the partnership and cooperation agreement (PCA) with the EU.

The next aim would be to become a member of the World Trade Organisation. "President Kuchma has said that it is very important to carry out step-by-step implementation of the PCA with the EU and to implement the agreement on WTO membership," stressed Shpek.

Union governments have rejected Kiev's request to be considered for membership, urging the government to focus instead on the PCA, modernising the country's economy and making it more attractive to foreign investors.

Ukraine's ambassador said next week's summit would be an opportunity to demonstrate that the investment climate was improving. He highlighted progress in privatising parts of the energy sector as a sign of Kiev's commitment to economic reform and pointed out that Ukraine had tackled many of the trade problems which had strained relations with the EU.

Exports of scrap metal increased by nearly 10% in the first half of this year and the country's parliament has passed laws in response to Union protests about barriers to imports of fertiliser, tobacco products and alcoholic drinks. Kiev has also drawn up legislation to head-off complaints about measures designed to protect car manufacturers in Ukraine from foreign imports which gave Korean giant Daewoo, which has invested in the Ukraine, an advantage.

Shpek said the summit would also discuss the impact of enlargement on Ukraine, focusing on the fact that countries such as Poland and Slovakia - which do not currently require visas from Ukrainian citizens - would need to change their rules.

"We understand that enlargement will bring positive effects for Ukraine in the long-term but it is very difficult to explain to Ukrainians why the EU will stop them moving between Poland and Slovakia," he said.

Ukraine is hoping to strike a free-trade agreement with the Union as part of its long-term approach towards becoming a full member of the bloc.