In January 2016 started the provisional application of the deep and comprehensive free trade area (DCFTA) between the EU and Ukraine. After one year, we assess the implementation of the treaty by Ukraine. More precisely, we review seven fields: market access, industrial product safety, food safety, customs, public procurement, protection of intellectual property rights and competition policy. Overall, Ukraine is making good progress in the implementation of the treaty and work is mostly on track. The biggest success story relates to public procurement, in which new legislation and procedures create preconditions for the mutual opening of the public procurement market between Ukraine and the EU. However, there were two explicit breaches regarding market access. First, the export duties for metal scrap were increased. Second, a ten-year ban on exports of wood logs was adopted, creating undue preferences to domestic wood processing companies. In the fields of protection of property rights and competition policy, the legislation is already largely in line with the international norms. However, the real situation is still far from optimal and there is a need to enforce legislation more vigorously.
Source: German Advisory Group Ukraine, Newsletter, Issue No. 103, May 2017.