The European Parliament has announced that about 98 percent of the customs duties that Ukrainian iron, steel, farm produce and machinery exporters pay at EU borders will be removed by a proposal backed by the European Parliament on Thursday, April 3. This unilateral measure will boost Ukraine's struggling economy by saving its manufacturers and exporters €487 million a year.
According to European Parliament's announcement, this trade measure, set to apply from May 2014, will remove 94.7 percent of EU tariffs currently charged on imports of industrial goods from Ukraine. This EU trade "preference" measure does not require Ukraine to reciprocate by removing its own customs duties on imports from the EU, but will require it not to raise them. The measure also entitles the EU 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 removal of customs duties will apply from the date when it is finally approved by the EU Council of Ministers until November 2014, or until the EU-Ukraine association agreement, including a deep and comprehensive trade deal which foresees bilateral liberalization of trade, enters into force.
