On 22 April 2014, the European Union issued a regulation (the “Regulation“) reducing or eliminating customs duties on goods originating in Ukraine (the “trade preferences“). This follows a similar announcement made by the European Commission on 11 March. The trade preferences entered into force on 23 April 2014.
The Regulation has been adopted in view of the unprecedented political and economic challenges facing Ukraine and in order to support its economy. According to the European Commission, “this unilateral measure will allow Ukrainian exporters to benefit from preferential access to the EU market in full line with the schedule of concessions negotiated under the DCFTA” (as defined below). Ukraine will not have to provide preferential access to EU exports in return.
The Regulation has been adopted to advance the implementation of the tariff section in the Deep and Comprehensive Free Trade Agreement (the “DCFTA“) between the EU and Ukraine which has not been signed yet. The trade preferences apply until 1 November 2014. However, these may be superseded by the DCFTA to the extent that the latter will be signed and enter into force before 1 November 2014.
