Textiles and Apparel From Ukraine Are Likely to Get Tariff Exemption in The EU Market

Textiles and apparel from Ukraine are likely to get tariff exemption in the EU market from as early as May this year, as the International Trade Committee of the European Parliament has backed a plan to remove tariffs on imports from Ukraine.

About 98 percent of the customs duties that Ukrainian goods exporters pay at EU borders would be removed if the proposal is backed by the full House in the first plenary of April 2014, says a European Parliament press release.

The unilateral measure would boost Ukraine’s struggling economy by saving its manufacturers and exporters €487 million a year, says the statement.

Member of European Parliament (MEP) Pawel Zalewski said, “Parliament and other EU institutions should lose no time in passing this law, given the urgency of the situation in Ukraine. Ukraine’s new Government needs strong and immediate EU help to fight off external pressures and to overcome economic and financial hardships.”

Trade MEPs backed Zalewski’s proposal by 22 votes to 2, with 1 abstention by not proposing any amendments to Commission’s proposal.

This unilateral trade preference measure would not require Ukraine to reciprocate by removing its own customs duties on imports from the EU, but would require it not to raise them.

However, EU imports from Ukraine would still have to comply with EU rules on origin labelling and the Ukrainian authorities would have to ensure that third country goods do not enter the EU via Ukraine, disguised as Ukrainian products.

The proposal also includes a “safeguard clause” which entitles the EU right to reimpose tariffs if imports from Ukraine flood the EU market in volumes that cause or threaten to cause serious difficulties to EU producers of the same goods.

The statement says that the trade preference measure would apply from the date when it is finally approved until November 1, 2014, or until the EU-Ukraine association agreement, including a deep and comprehensive trade deal, enters into force. In effect, the measure would give Ukraine the same terms of access to the EU market as it would have under the full trade deal.

The proposal now needs to be backed by the full House in the first plenary of April, and it is estimated that the trade preferences can become effective as early as May 2014.