Made by Paul de Lusignan Support Group Ukraine

1. The impact of the DCFTA on business
Paul de Lusignan
Support Group Ukraine

2. The DCFTA
• Title IV of the Association Agreement
• Enters into operation on 1 January 2016
• Covers the following topics:
• National treatment and market access for goods
• Trade remedies
• Technical barriers to trade
• Sanitary and phytosanitary measues
• Customs and trade facilitation
• Establishment and trade in services, payments, public
procurement, intellectual property, competition, energy, etc.

3. The DCFTA
Many of these will have a broad effect on
businesses, but notably
•Technical barriers to trade
•Sanitary and phytosanitary measures
will have a direct implication.

4. The study
• The study was intended to provide
"recommendations on the design of EU support
package targeting the private sector in order to
accompany the process of implementation of the
AAs/DCFTAs in Georgia, Moldova and Ukraine,
notably in relation to the compliance with the
EU norms in the domestic legislation."

5. Technical Barriers to Trade in the
DCFTA
• Reaffirms the TBT Agreement (Art. 54)
• Commits the parties to co-operation in technical
regulatory and standards issues (Art. 55)
• Align Ukrainian technical regulations and
standards, metrology, accreditation, conformity
assessment and market surveillance with
European practice (Art. 56)
• Make the necessary administrative reforms
necessary to implement this provision (Art. 57)
• Add an ACAA once alignment is achieved (Art.58)

6. Sanitary and phytosanitary
measures in the DCFTA
• Ensuring transparency;
• Approximation of laws;
• Recognising animal and plant health status of the
Parties;
• Mechanism for recognition of equivalence;
• Implementing the SPS agreement.
This applies only to agricultural products.

7. TBT issues: progress so far
• EU technical assistance programme in this area
comes to and end this year – a new one will begin
next year
• Progress on alignment of technical regulations for
product sectors
• New laws on standardisation, metrology and
conformity assessment have been passed by the
Rada
• Ministry of Economy (MEDT) gradually building
capacity

8. TBT issues: future actions needed
• Progress in institution building in standards,
conformity assessment, accreditation and
metrology
• The institution of a market surveillance system on
European lines
• Completion of alignment of technical legislation,
and of Ukrainian standards with ENs (European
standards).
• Improvement in awareness by industry of the
implications.

9. Changes to the business
environment
• Some of the changes that will affect business will
not require high levels of investment.
• Market Access (reduction in tariffs, export duties).
• The DCFTA will phase out EU protected GIs.
• New customs procedures and rules.
• Company Law, Accounting and Auditing.

10. Changes to the business
environment (continued)
• But some will:
• Compliance with technical regulations will require
understanding of the requirements, standards that
confer presumption of conformity, product design,
testing, certification, conformity assessment.
• Compliance with EU SPS measures: agricultural
producers will need to comply with hygiene and
food safety standards.
• compliance with legislation on energy efficiency
and environmental protection.

11. Actions recommended by the Study
• Information and knowledge of changes required
• Strategy for implementation and compliance
• Internal management and process changes
• Investment in plant and equipment
• External certification as necessary

12. • Thank you for your attention.
• Disclaimer: This presentation does not constitute
an official position of the European Commission.