Dcfta Agreement

The “Deep and Comprehensive Free Trade Area” (CCFTA) East initiative aims to strengthen the economic development of countries that have signed an association agreement with the EU, namely Georgia, Moldova and Ukraine, by providing targeted financial and technical support to small and medium-sized enterprises (SMEs) in these three countries. The average tariff rate between Ukraine and the EU rose from 7.6% to 0.5%, after ten years of the agreement`s decline to 0.05%. Similarly, EU exports to Ukraine will fall by 5% after ten years to 0.42 per cent and 0.32 per cent. The agreement provides value rules for 99% of Ukrainian EU experts. The agreement provides several for the implementation of political dialogue. The EU-Ukraine summit is the highest level of political dialogue. At the ministerial level, dialogue is conducted within the Association Council. The political dialogue aims to ensure that the agreement provides for a right of establishment (unlike commercial presence) in the service and non-service sectors. The right is subject to a number of reservations on a negative list. This provision is unprecedented for the EU and guarantees automatic coverage of new services and further liberalisation, which is not among the exceptions. The agreement provides for the free movement of services on preferential terms and, in many cases, on the basis of equivalence with EU treatment.

There is a right of establishment for Ukrainian service providers (subject to reservations). This also applies to new services in the future. The agreement provides for a gradual opening of the public procurement market at the bilateral level. The agreement applies to public procurement within the monetary limits set by the agreement (at least EUR 130,000). The European Neighbourhood Policy aims to establish comprehensive agreements with countries that are not politically able to join the EU, either for geopolitical or economic reasons. It promotes the EU`s values of human rights, the rule of law, democracy, the market economy, sustainable development, health and security, etc. Disputes over the terms of the agreement are not within the dispute settlement mechanism of the agreement. The agreement establishes the obligations of the parties to adequately and effectively implement international intellectual property agreements signed by Georgia and the EU, including the WTO agreement on trade-related aspects of intellectual property rights (TRIPS). In addition, the requirements of the agreement respect and specify the rights and obligations of the parties in the TRIPS agreement. The agreement regulates dispute resolution. In particular, the dispute settlement agreements in this agreement resolve disputes related to the reporting/use of commercial or commercial matters under the agreement. To achieve these objectives, a special dispute settlement mechanism will be put in place, which corresponds to a dispute settlement mechanism existing within the WTO, depending on its structure and phases.

Each product has a specific rule of origin that it must comply with in order to satisfy preferential access under the agreement to achieve this. The goods must meet the conditions set out in the original protocol of the agreement. These provisions set the minimum treatment or processing required for non-native materials to enable the resulting products to acquire the character originating in Ukraine. At this stage, Georgia has aligned its legislation with six European directives. The remaining 15 directives are gradually being brought together and each provides for overlap periods before the legislation comes into force to allow local businesses to adapt to compliance requirements with the new standards.