HARMONIZATION OF ECONOMIC AND LEGAL MECHANISMS FOR DEEPENING EU-UKRAINIAN RELATIONS

• Main Authors: Oleh Predmestnikov, Vitaliy Gumenyuk
• Format: Article
• Language: English
• Published: Izdevnieciba “Baltija Publishing” 2019-03-01
• Series: Baltic Journal of Economic Studies
• Subjects: deepening EU-Ukrainian relations, EU-Ukraine Agreement, DCFTA, foreign policy, economic relations, harmonization mechanism
• Online Access: http://www.baltijapublishing.lv/index.php/issue/article/view/616
• ISSN: 2256-0742; 2256-0963

The policy of Ukraine for the establishment and development of relations with the European Union began in 1993, was carried out all the years of Ukraine’s existence, and received intensive deepening with the beginning of the formation of an international treaty – the Association Agreement, which includes a list of legal, social, economic, and technical regulations, and Deep and Comprehensive Free Trade Area (DCFTA), in 2014 and its final signing in 2017. Political and economic objectives of the Agreement are of fundamental importance to the future of both Ukraine and the whole European region. The political goal is to implement European standards on the territory of Ukraine. This implies the introduction of fundamental European values, namely democracy, rule of law, respect for human rights and the standards of the European security system. The Agreement does not foresee membership in the European Union, however, does not exclude such an opportunity in the future. The economic goal is to help to modernize the Ukrainian economy by expanding trade volumes with the EU and other countries, as well as reforming economic regulation mechanisms in line with the best European practices. Subject to the improvement of the business climate, Ukraine will become attractive for foreign and domestic investment for further production for export to the EU and other markets of the world. Harmonization of standards and European regulations has become a much more important process than the fulfilment of strictly technical requirements and underlies the introduction of effective governance without corruption. In the process of harmonization of interaction, an adaptive institutional mechanism was formed (the highest level – annual Summits; the key coordinator is the Association Council, consisting of members of the Council of the European Union and members of the European Commission, and members of the Cabinet of Ministers of Ukraine; the level of operational coordination – the Association Parliamentary Committee, which includes members of the European Parliament, representatives of the Verkhovna Rada of Ukraine, and the Civil Society Platform; in order to coordinate processes on the territory of Ukraine, the Ukrainian government has introduced a few supervisory committees and commissions). The harmonization of the economic aspect of the mechanism has been determined in solving issues of openness of markets for duty-free import from Ukraine in April 2014, obtaining a visa-free regime with the EU, abolishing export-import tariffs, implementing European technical standards for food safety, phytosanitary norms, competition policy, service provision, and public procurement policy. The issues of further deepening of relations include a review of the terms for the introduction of regulations and legislative provisions before their actual implementation, stabilization of financial and economic processes in the country, and further development of democratic values and social institutions.