WT/REG353/1  
13 April 2017  
(17-2029) Page: 1/57 
Committee on Regional Trade Agreements   
 
 
FACTUAL PRESENTATION  
DEEP AND COMPREHENSI VE FREE TRADE AREA C ONCLUDED AS A PART O F  
THE ASSOCIATION AGRE EMENT BETWEEN THE EUROPEAN UNION  AND UKRAINE  
(GOODS AND SERVICES ) 
 
Report by the Secretariat  
This report, prepared for the consideration of the Deep an d Comprehensive Free Trade 
Area concluded as part of the Association Agreement between the European Union  and 
Ukraine , has been drawn up by the WTO Secretariat on its own responsibility and in 
full consultation with the Parties. The factual presentation re produces as closely as 
possible the terminology used in the Association Agreement and in the comments 
provided and does not imply official endorsement or acceptance by the Secretariat of 
such terminology. The report has been drawn up in accordance with the  rules and 
procedures contained in the Decision for a Transparency Mechanism for Regional 
Trade Agreements (WT/L/671) and thus does not imply any value judgement by the 
Secretariat regarding the contents of the Agreement.  
Any technical questions arising fr om this report may be addressed to Ana Cristina 
Molina (tel: +41 22 739 6060 ). Any statistical questions arising from this report may 
be addressed to Rowena Cabos (tel: +41 22 739 5185 ). 
 
 WT/REG353/1  
 
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TABLE O F CONTENTS  
Page 
1   TRADE ENVIRONMENT  ................................ ................................ ................................ . 5 
1.1   Merchandise trade  ................................ ................................ ................................ ....... 5 
1.2   Trade in services and investment  ................................ ................................ ..................  7 
2   CHARACTERISTIC ELEME NTS OF THE AGREEMENT  ................................ ....................  11 
2.1   Background Information  ................................ ................................ .............................. 11 
3   PROV ISIONS ON TRADE IN G OODS  ................................ ................................ ...........  12 
3.1   Import duties and charges, and quantitative restrictions ................................ .................. 12 
3.1.1    General provisions  ................................ ................................ ................................ ...12 
3.1.2    Liberalization of trade and tariff lines  ................................ ................................ ......... 13 
3.1.3    Liberalization schedule  ................................ ................................ ............................. 13 
3.1.3.1    The European Union  ................................ ................................ .............................. 13 
3.1.3.2    Ukraine  ................................ ................................ ................................ ................ 15 
3.1.4    Tariff-rate quotas  ................................ ................................ ................................ .....17 
3.1.5    Entry price system  ................................ ................................ ................................ ...17 
3.2   Rules of origin  ................................ ................................ ................................ ............ 18 
3.2.1    Requirements for the determ ination of origin  ................................ .............................. 19 
3.2.2    Cumulation  ................................ ................................ ................................ ............. 19 
3.2.3    De minimis  rule ................................ ................................ ................................ .......19 
3.2.4    Outward processing and absorption rule  ................................ ................................ .....19 
3.2.5    Other factors affecting the originating status of a good  ................................ ................. 19 
3.2.6   Administration of the rules of origin  ................................ ................................ ........... 20 
3.3   Export duties and charges, and quantitative restrictions  ................................ .................. 20 
3.4   Regulatory provisions on trade in goods  ................................ ................................ ........ 21 
3.4.1    Standards  ................................ ................................ ................................ ............... 21 
3.4.1.1    Sanitary and phytosanitary measures  ................................ ................................ ......21 
3.4.1.2    Technical barriers to trade  ................................ ................................ ..................... 22 
3.4.2    Safeguard mechanisms  ................................ ................................ ............................ 22 
3.4.2.1    Global safeguards  ................................ ................................ ................................ .22 
3.4.2.2    Bilateral safeguards  ................................ ................................ ............................... 23 
3.4.2.3    Safeguards related to the balance of payments  ................................ ......................... 24 
3.4.2.4    Special safeguards  ................................ ................................ ................................ 24 
3.4.3    Anti-dumping and countervailing measures  ................................ ................................ .24 
3.4.4   Subsidies and State aid  ................................ ................................ ............................ 24 
3.4.5    Customs -related procedures ................................ ................................ ...................... 24 
3.5   Sector -specific provisions on trade in goods  ................................ ................................ ...25 
4   PROVISIONS ON TRADE IN SERVICES AND INVE STMENT  ................................ .........  25 
4.1   Scope and definitions  ................................ ................................ ................................ ..25 WT/REG353/1  
 
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  4.2   Denial of benefits  ................................ ................................ ................................ .......26 
4.3   General provisions on trade in services  ................................ ................................ ......... 26 
4.3.1    Market access  ................................ ................................ ................................ ......... 26 
4.3.2    National and MFN treatment  ................................ ................................ ...................... 26 
4.3.3    Commercial presence  ................................ ................................ ............................... 27 
4.3.4   Movement of natural persons  ................................ ................................ .................... 27 
4.3.5    Performance requirement  ................................ ................................ ......................... 28 
4.3.6    Senior Management and boards of directors  ................................ ................................ 28 
4.4   Liberalization commitments  ................................ ................................ ......................... 28 
4.4.1    The EU  ................................ ................................ ................................ ................... 28 
4.4.1.1    Horizontal commitments  ................................ ................................ ........................ 28 
4.4.1.2    Sector -specific commitments  ................................ ................................ .................. 29 
4.4.2    Ukraine  ................................ ................................ ................................ .................. 33 
4.4.2.1    Horizontal commitments  ................................ ................................ ........................ 33 
4.4.2.2    Sector -specific commitments  ................................ ................................ .................. 33 
4.5   Regulatory provisions  ................................ ................................ ................................ ..36 
4.5.1    Domestic regulation  ................................ ................................ ................................ .36 
4.5.2    Recognition  ................................ ................................ ................................ ............. 36 
4.5.3    Subsidies  ................................ ................................ ................................ ................ 36 
4.5.4    Safeguards  ................................ ................................ ................................ ............. 36 
4.6   Sector -specific provisions on trade in services  ................................ ................................ 36 
4.6.1    Electronic commerce  ................................ ................................ ................................ 36 
4.6.2    Other sector -specific provisions  ................................ ................................ ................. 36 
5   GENERAL PROVISIONS O F THE AGREEMENT  ................................ .............................  37 
5.1   Transparency  ................................ ................................ ................................ ............. 37 
5.2   Current payments and capital movements  ................................ ................................ .....37 
5.3   Exceptions  ................................ ................................ ................................ ................. 37 
5.4   Accession and Withdrawal ................................ ................................ ............................ 38 
5.5   Institutional framework  ................................ ................................ ............................... 38 
5.6   Dispute settlement  ................................ ................................ ................................ .....38 
5.7   Relationship with other agreements concluded by the Parties  ................................ ........... 41 
5.8   Government procurement  ................................ ................................ ............................ 42 
5.9   Intellectual property rights  ................................ ................................ .......................... 44 
5.9.1    Copyrights  ................................ ................................ ................................ .............. 45 
5.9.2    Trademarks and well -known marks  ................................ ................................ ............ 45 
5.9.3    Geographical indications  ................................ ................................ ........................... 45 
5.9.4    Designs  ................................ ................................ ................................ .................. 46 
5.9.5    Patents  ................................ ................................ ................................ ................... 46 
5.9.6    Plant varieties  ................................ ................................ ................................ ......... 46 
5.9.7    Genetic resources, traditional knowledge and folklore  ................................ ................... 46 WT/REG353/1  
 
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  5.10   Other provisions  ................................ ................................ ................................ .......46 
5.10.1    Competition policy, Monopolies and  State Companies  ................................ ................. 46 
5.10.2    Environment and labour related provisions  ................................ ................................ 46 
ANNEX 1  ................................ ................................ ................................ ........................  48 
ANNEX 2  ................................ ................................ ................................ ........................  52 
ANNEX 3  ................................ ................................ ................................ ........................  53 
 WT/REG353/1  
 
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Key Facts  
 
Parties to the Agreement:  European Union and Ukraine  
 
Date of Signature:    27 June  2014 
 
Date  of application : 23 April 2014 for the EU  and 
1 January 2016 for Ukraine  
 
Date of Notification:   1 July 2014  
 
Full implementation:   2026 
 
 
 
1  TRADE ENVIRONMENT  
1.1.  The Deep and Comprehensive Free Trade Area (herein after referred to as the Agreement)  
covers goods and s ervices  and was concluded as part of the Association Agreement  (hereinafter  
the AA)  between the European Union and its Member States (hereinafter the EU) and Ukraine. It is 
the EU's 37 th and Ukraine 's 16th regional trade agreement (RTA)  notified to the WTO  Secretariat . 
1.2.  The EU and Ukraine  differ substantially in the size of their economies and their participation 
in world trade. In 20151, the EU 's GDP amounted to US$16.3  trillion compared to US$90.6  billion 
for Ukraine . In terms of trade, in the same year , the EU was the second largest exporter and 
importer in the world  (excluding intra -EU trade)  while Ukraine  ranked 36th (US$37.8  billion) in 
terms of exports and 41st (US$36 .3 billion) for imports . With regard to services, the EU i s the 
world l eading exporter  and importer while  Ukraine ranked  respectively 33rd (US$12.1 billion)  and 
44th (US$9.7 billion) in the  world  in 2015 . 
1.3.  At the bilateral level, the EU is Ukraine's main trading partner (exports and imports). In 
2015, it accounted for 34% of Ukraine's total exports and 41% of its imports. In contrast, Ukraine 
is a relatively small provider and buyer of goods for the EU. It accounts for 0.7% of the EU total 
imports and captures a similar share of the EU total exports (0.8%), making Ukraine the EU's 28th 
and 24 th largest import and export partner.  
1.1  Merchandise trade  
1.4.  Chart 1.1 shows the P arties' global and bilateral merch andise trade for the period 2001 -2015. 
In recent years,  for both parties  the trade balance with the world has moved to a surplus. T his is 
the ca se since 2013 for th e EU and for 2015 for Ukraine. At the bilat eral level, the EU maintained  a 
trade surplus with Ukraine which has fluctuated during this period but  narrowed since 2013 from 
US$10 trillion to US$1.1 trillion  in 2015 . 
                                                
1 WTO Trade Profiles (latest data).  WT/REG353/1  
 
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  Chart 1.1  EU and Ukrai ne: Merchandise bilateral trade and with the world  
0102030405060708090100
0102030405060708090100
2001 2003 2005 2007 2009 2011 2013 2015B. Ukraine 2001 -2015
(€billions)
Imports from EU (Right Axis)
Exports to EU (Right Axis)
Total Imports
Total Exports
0102030405060708090100
02004006008001,0001,2001,4001,6001,8002,000
2001 2003 2005 2007 2009 2011 2013 2015A. EU 2001 -2015 
(€billions)
Imports from Ukraine (Right Axis)
Exports to Ukraine (Right Axis)
Total Imports
Total Exports
 
Note:  Data for 2001 -2003 is EU (15); 2004 -2006 is EU(25); 2007 -2012 is EU(27); and 20 13 onwards is 
EU(28). For Ukraine, the  exchange rate s EUR per USD used in  the calculations are: 1.12 (2001), 
1.06 (2002 ), 0.89 (2003), 0.81 (2004), 0.80 (2005), 0.80 (2006), 0.73 (2007), 0.68 (2008), 0.72 
(2009), 0.76 (20 10), 0.72 (2011), 0.78 (2012), 0.75 (2013), 0.75 (2014) and 0.90 (2015).  
Source:  Eurostat and UNSD Comtrade database.  
 
1.5.  Chart 1.2 exhibits  the Parties' tra de basket for the three years prior to the Agreement's entry 
into force. Since the Parties implemented the Agreement in different years, 2014 for the EU and 
2016 for Ukraine, Chart 1.2 presents data on EU's imports for the period 2011-2013 and on 
Ukraine's  imports for 2013-2015. The data  suggests that th ere are some complementarities  
betwee n the Parties. The main product s by HS section imported by the EU from Ukraine  were 
metals,  minerals , vegetables , and machinery, which are also  the largest export categor ies of 
Ukraine.  Together, these categories a ccounted on average for about 70% of the EU's imports from 
Ukraine.  Ukraine on the other hand im ported mainly machinery, chemicals , vehicles, minerals and 
plastics from the EU , accounting for about 70%  of its tot al imports from the EU. Of these exports, 
machinery, vehicles, chemicals and minerals  were the EU's main exports, accounting  on average 
for a bit more than 60% of its total exports  during 2013 -2015.  WT/REG353/1  
 
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  Chart 1.2  EU and Ukraine: product composition of merchan dise trade  by HS section  
27
21
179544336EU imports from Ukraine (%)
29
21
96554433227EU's Global Imports (%)
29
13
12107765228Ukraine's Global Exports (%)
18
18
17 8855433226Ukraine's imports from EU (%)
30
16
12666433228Ukraine's Global Imports(%)
26
16
156655442228EU's Global Exports(%)Total: €15billion Total: €1,869 billion
Total: €44 billion Total: €1,744 billionTotal:  €50 billion
Total: €17 billion
Animal or vegetable 
fats and oilsVegetablesLive animals
ChemicalsMineralsPrepared 
foods
Wood pulpWood and 
articles of woodPlastics
Precious stonesArticles of stone, 
plaster, cementTextiles
VehiclesMachineryBase metals
OtherMiscellaneousOpticalA.EU-Ukraine: Product composition of merchandise trade, annual average 2011 -2013
B. EU -Ukraine: Product composition of merchandise trade, annual average 2013 -2015
 
Note:  Data for 2011 -2012 is EU(27) and 2013 onwards is EU(28) .  
 For Ukraine, the e xchange rate s EUR per USD used in  the calculations are: 0.72 (2011), 0.78 
(2012), 0.75 (2013) , 0.75 (2014) and 0.90 (2015).  
Source:  UNSD, Comtrade  database.  
 
1.2  Trade in services and investment  
1.6.  Charts 1.3 and 1.4  depict the Parties' global trade in commercial services during 2011 -2015. 
During this period, the EU  and Ukraine each recorded  a global trade surplus  in services , which has 
narrowed in recent years .2 In 2015, the EU 's main export and import categories were other 
business services  (28%), transport (18 %) and travel services  (14%), accounting respectively for 
60% and 65% of its exports and imports.  For Ukraine, its main export categories were transports 
(54%), telecommunication and IT services  (16%) and manufacturing services  (11%) and its main 
import categories: t ransport s (26%) , financial (20%) and business (16%) services . 
1.7.  At the bilateral level, Chart 1.5 shows  that Ukraine has a trade surplus w ith the EU, which 
amounted to about $0.3 billion in 2015.   
                                                
2 For comparability purposes Chart 1.4 on Ukraine's trade in commercial services depicts figures only for 
2013-2015 since data for 2011 -2012 and 2013 -2015 follow a different nomenclature. Data for 2011 -2012 
follow the BPM5 nomenclature while data for 2013 -2015 f ollow the BPM6 one.  WT/REG353/1  
 
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  Chart 1.3 EU : Trade in commercial services with the world , 2011 -2015  
0100200300400500600700800900EU trade with world
(€Billion)
Manufacturing services on physical 
inputs owned by others
Maintenance & repair services, n.i.e.
Transport services
Travel servicesInsurance and pension 
services
Financial services
Charges for the use of 
intellectual property n.i.e.Telecom, computer and 
information services
Other business servicesConstruction services
Personal, cultural and 
recreational servicesImport Export
2014Import Export
2013Import Export
2012Import Export
2011Import Export
2015
 
Note:  European Union covers data for EU(28). Trade flows excludes intra -EU trade.  
 Data is b ased on BPM6.  
Source:  Eurostat.  
Chart 1.4 Ukraine: Trade in commercial services with the world, 2013 -2015  
Processing of material resources
Maintenance & repair services, 
n.i.e.
Transport services
Travel servicesInsurance and pension services
Financial services
Royalties and other services related to 
the use of intellectual propertyTelecom, computer and 
information services
Business servicesConstruction services
Personal, cultural and 
recreational servicesImport Export
2013Import Export
2014Import Export
2015024681012Ukraine trade with world
(€Billion)
 
Note:  Ukraine:  Exchange rate EUR per USD are : 0.75 (2013), 0.75 (2014) and 0.90 (2015).  
 Data follows  BPM6.  
Source:  Ukrainian authorities.  WT/REG353/1  
 
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  Chart 1.5 Ukraine -EU: bilateral t rade in co mmercial services, 2013 -2015  
0.00.51.01.52.02.53.03.5Ukraine trade with EU
(€Billion)
Processing of material resources
Maintenance & repair services, 
n.i.e.
Transport services
Travel servicesInsurance and pension services
Financial services
Royalties and other services related to 
the use of intellectual propertyTelecom, computer and 
information services
Business servicesConstruction services
Personal, cultural and 
recreational servicesImport Export
2013Import Export
2014Import Export
2015
 
Note:   For Ukraine, the e xchange rate s EUR per USD used in  the calculations are: 0.75 (2013), 0.75 (2014)  
and 0.90 (2015) . 
 Data follows  BPM6.  
Source:  Ukrainian authorities.  
 
1.8.  Charts 1.6 and 1.7  show the P arties' foreign direc t investment stocks and flows both globally 
and bilaterally.  Despite significant fluctuations in FDI  flows during 2002 -2014, Ukraine has  been a 
net recipient of FDI , and the EU a net provider, except in  2013-2014 when both inward and 
outward flows fell sharply. At the bilateral level, Chart 1.6 shows that Ukraine  has been a net 
recipient of FDI from the EU , except in 2013 -2014 when outward flows fell and inward flows 
increased.  
 WT/REG353/1  
 
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  Chart 1.6 EU: FDI stock and flow with Ukraine and the world, 2002 -2014  
051015202530
2002 2004 2006 2008 2010 2012 2014EU FDI stock with Ukraine
2002 -2014
(€Billion ) 
Outward Inward
-20246810
2002 2004 2006 2008 2010 2012 2014EU FDI flow with Ukraine
2002 -2014
(€Billion) 
Outward Inward01,0002,0003,0004,0005,0006,0007,000
2002 2004 2006 2008 2010 2012 2014EU FDI stock with world
2002 -2014
(€Billion ) 
Outward Inward
0100200300400500600700
2002 2004 2006 2008 2010 2012 2014EU FDI flow with world
2002 -2014
(€Billion ) 
Outward Inward
 
Note: European Union covers data for EU(15) from 2001 -2003, EU (25) fr om 2004 -2006, EU (27) from 
2007-2012 and EU(28) from 2013. Trade flows excludes intra -EU trade.  
 Based on BPM6 (2013 -2014).  
Source:  Eurostat.  WT/REG353/1  
 
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  Chart 1.7 Ukraine: FDI stock and flow with the world, 2002 -2014  
05101520253035404550
2013 2014 2015Ukraine FDI stock with EU
2013 -2015
(€Billion ) 
Outward
Inward
-1.5-1.0-0.50.00.51.01.5
2013 2014 2015Ukraine FDI flow with EU
2013 -2015
(€Billion) 
Outward
Inward-20246810
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015Ukraine FDI flow with world
2002 -2015
(€Billion) 
Outward Inward
010203040506070
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015Ukraine FDI stock with world
2002 -2015
(€Billion ) 
Outward Inward
 
Note:  For Ukraine,  the exchange rate s EUR per USD used in  the calculations are: 1.06 (2002), 0.89(2003), 
0.81(2004), 0.80(2005), 0.80(2006), 0.73(2007), 0.68(2008), 0.72(2009), 0.76(2010), 
0.72(2011), 0.78( 2012), 0.75 (2013), 0.75 (2014) and  0.90 (2015).  
Source:  UNCTADStat.  
 
2  CHARACTERISTIC ELEME NTS OF THE AGREEMENT  
2.1  Background Information  
2.1.  The Agreement  provides for the progressive formation of a free trade a rea (Article 25)  and 
covers goods and services. It was concluded as part of the AA and is contained in Title IV on Trade 
and Trade -Related Matters of the latter . The AA was signed by the Parties on 27 June  2014 and 
has been applied on a provisional basis by the EU since 23 April 201 4. Ukraine has applied the AA 
since November 2014, except fo r Title IV, whose provisional application begun in 1 January 20 16.3 
The A A was notified to the WTO on 1 July 2014  under Article  XXIV:7(a) of the GATT 1994 and 
Article  V:7(a) of the G ATS.  
2.2.  The text of the AA , along with its schedules and annexes, is availab le on the Parties'  
website s.4 In addition to Title IV, the AA contains six  other chapters  namely : General P rinciples 
(Title I) ; Political Dialogue and Reform, P olitical Association, C ooperation an d Convergence in the 
Field of Foreign and Security Policy (T itle II); Justice, F reedom and S ecurity (Title  III); E conomic 
and Sector Cooperation (Title V); Financial C ooperation (Title V I); and Institutional, G eneral and  
Final P rovisions (Title VII). Each title is sub divided in to chapters, sections and subsections . The AA  
                                                
3 WTO documents WT/REG353/N/1/Add.1/Corr.1 and S/C/N/744/Add.1/Corr.1 dated 22 February 2016.  
4 The text of the AA  can be found in: 
http://www.kmu.gov.ua/control/en/publish/article%3fart_id=248279225&cat_id=248274610  (for Ukraine); 
and http://eeas.europa.eu/ukraine/docs/association_agreement_ukrain e_2014_en.pdf  (for the EU).   WT/REG353/1  
 
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  also contains a  Joint Declaration , three Protocols, and 44 Annexes to T itle IV (25 Annexes), T itle V 
(17 Annexes) and  Title VI (two A nnexes) . 
2.3.  This factual presentation focusses  on the Agreement and therefore on the contents of Title  IV 
which inclu des 15 chapters  (see Box 2.1).  
Box 2 .1 Structure of Title IV  on Trade and Trade -Related Matters of the AA  
Title IV  Trade and Trade Related Matters  
Chapter  1 National treatment and market access for goods  
Chapter 2  Trade remedies  
Chapter 3  Technical barr iers to trade  
Chapter 4  Sanitary and phytosanitary measures  
Chapter 5  Customs and trade facilitation  
Chapter 6  Establishment, trade in services and electronic commerce  
Chapter 7  Current payments and movement of capital  
Chapter 8  Public procurement  
Chapter 9  Intellectual property  
Chapter 10  Competition  
Chapter 11  Trade -Related energy  
Chapter 12  Transparency  
Chapter 13  Trade and sustainable development  
Chapter 14  Dispute settlement  
Chapter 15  Mediation mechanism  
Annexes   
Source:  The A A between the EU and Ukraine (Official Journal of the European Union L161/2014).  
2.4.  Under the J oint Declaration, Ukraine agree s to conclude preferential agreements with 
countries having preferential agreements with the EU, and in particular to start negotiations as 
soon as possible with those States which (a) have established a Customs Union with the EU, and 
(b) whose products do not benefit from the tariff concessions under th e Agreement, with a view to 
concluding a bilateral agreement establishing a free trade area in  accordance with Article XXIV of 
the GATT.  
3  PROVISIONS ON TRADE IN GOODS  
3.1  Import duties and charges, and quantitative restrictions  
3.1.1   General provisions  
3.1.  Trade in goods between the Parties is mainly governed by Chapter 1 of Title IV , its Annexes 
and the Protoco ls 1-2 to the AA. The Chapter include s provisions on national treatment, tariff 
elimination, export and import restrictions, export subsidies and export taxes while Protocols 1 and 
2 mainly focus on rules of origin  and customs procedures respectively.  
3.2.  The Parties commit to elimin ate or  reduce customs duties on originating goods  according to 
their respective s chedules and to not  increase an y existing duty,  or introduce a new one on an 
originating good, unless otherwise specified. According to the Agreement, they can: (a) increase a 
custom s duty up to the level established in their tariff schedule following an unilateral reduction; 
and (b) maintain or increase a custom s duty when authorized by the WTO Dispute Settlement 
Body. They also commit to hold, upon req uest, consultations in five years after the en try into force 
of the Agreement  to broaden or accelerate the liberalization process for products subject to a 
transition period  (Articles 29 and 30).  The preferential duty applied to an originating good will be  WT/REG353/1  
 
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  the lesser of the customs duty rate established in the Party's Schedule and the existing applied 
MFN rate (Article 29).  
3.3.  The Parties agree to grant national treatment to each other's goods in accordance with 
Article III of GATT 1994, and to eliminate any n on-tariff measure that prohibits or restricts their 
bilateral imports/exports, except as otherwise provided in Article XI of the GATT 1994 (Articles  34 
and 35).5  
3.4.  Customs valuation and the application of trade -related fees and charges other than customs 
duties are governed respectively by the WTO Customs Valuation Agreement, which is incorporated 
into the Agreement , and by  Article  VIII of the GATT (Articles 33 and  79).  
3.1.2   Liberalization of trade and tariff lines  
3.5.  The Parties agree to gradually establish a free  trade area over 10 years according to the ir 
respective schedules , which are  described in Annex I -A. Special conditions apply for imports of  
cars and  worn clothing  from the EU . These conditions are described in Annex II  and Annex I -B, 
respectively . For car s originating in the EU (product code 8703), Ukraine will reduce its import 
duties over 10 years but will be allowed to apply a safeguard measure between the 2nd and 14th 
year after the Agreement's entry into force (see section 3.4.2.3). For worn clothing  (product code 
6309 00 00) , Ukraine  will gradually reduce  its duties over  a transition period of five years, starting 
from the year followi ng the entry into force of the A greement , but will apply a system of  minimum 
entry price s instead  (see section 3.1.5).  
3.6.  For Ukraine, the elimination of duties  started on 1 January 2016, while for the EU it started 
on 23 April 2014. In this respect, th e EU Authorities indicated that  this did not alter the staging 
process  and that the second round of tariff eliminations will take place in 2019 as set out  in its 
schedule . The liberalization process will be completed by 202 3 for the EU and by 2026 for Ukraine . 
Both Parties exclude d some products from liberalization: 400 lines were  excluded  by the EU and 
367 by Ukraine . 
3.1.3   Liberali zation schedule  
3.1.3.1   The European Union  
3.7.  Table 3.1 shows the EU 's tariff elimination comm itments with respect to Ukraine .6 Before the 
entry into force of the Agreement, 25.1% of the EU's lines were duty free  on an MFN basis , 
corresponding to 75.7 % of its imports  from Ukraine during 2011 -2013. In 2014, w hen it started to 
apply the Agreement , an additional 64 % of its lines  became dut y-free for imports from Ukraine . At 
the end of the transition period in 2023, 95.8% of the EU 's tariff lines will be dut y free for imp orts 
from Ukraine, corresponding to 97.9 % of its imports by value. Of the 400  of the lines that will 
remain dutiable all, except for 17, are subject to non-ad valorem  duties , mainly  specific duties  
(273 lines).  
Table 3.1 EU: Tariff elimination commitments under the Agreement and corresponding 
average trade  
Duty phase -out 
period  Number of 
lines  % of total lines in 
EU's tariff 
schedule  Value of EU's 
imports from 
Ukraine  
(2011 -2013)  
€ million  % of EU's total 
impo rts from  
Ukraine  
2011 -2013  
MFN (2014)  2,359  25.1 9,666.1  75.7 
2014 6,027  64.0 2,377.9  18.6 
2019 330 3.5 110.7  0.9 
                                                
5 Article s III and XI of the GATT 1994  and its relevant provisions under the WTO  are incorporated into 
the Agreement . 
6 Of the total number of the EU's tariff lines (i.e. 9,412), 996 are  subject to non -ad valorem  duties: 
651 lines have a specific duty, 199 a compound tariff, 62 a mixed duty and 84 are subject to  other type of 
non-ad valorem  duties (e.g. entry price system).  WT/REG353/1  
 
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  Duty phase -out 
period  Number of 
lines  % of total lines in 
EU's tariff 
schedule  Value of EU's 
imports from 
Ukraine  
(2011 -2013)  
€ million  % of EU's total 
impo rts from  
Ukraine  
2011 -2013  
2021 140 1.5 170.2  1.3 
2023 156 1.7 174.3  1.4 
Remain dutiable  400 4.2 266.5  2.1 
Total  9,412  100.0  12,765.8  100.0  
Note:  Based on the H S 2012 nomenclature.  
Source:  WTO estimates based on data from EU and WTO -IDB. 
 
3.8.  Table  3.2 and Chart 3.1  show the EU 's tariff elimination, by HS section and chapter with 
regard to Ukraine . The 400  lines that remain s ubject to duties are found in four s ections: I (live 
animals);  II (vegetable products),  IV (prepare d food) and VI (chemicals), which exhibit average 
tariffs between 7.4 % and 16.7 %.  
Table 3.2 EU: Tariff elimination under the Agreement, by HS Section  
HS 
Section  MFN 
Average  
% No. of 
lines  MFN duty -
free lines  
2014  Number of additional duty -free 
lines under the Agreement  Remain 
dutiable  Avg. Final 
Tariff  
(Dutiable)  2014  2019  2021  2023  
I 9.8 931 107 587 19   218 11.3 
II 5.5 555 150 336    69 7.4 
III 5.9 128 23 105      
IV 14.9 840 95 597 48  10 90 16.7 
V 0.8 234 170 61 3     
VI 4.3 1,168  302 743 67 13 20 23 10.0 
VII 4.6 301 62 184 55     
VIII 3.1 130 45 58 24 3    
IX 2.4 213 99 84 24 6    
X 0.0 195 195       
XI 8.0 1,159  39 1,120       
XII 8.2 106 2 42 34 28    
XIII 4.0 240 33 167 13 4 23   
XIV 0.6 56 45 11      
XV 1.8 953 500 335 27 61 30   
XVI 2.3 1,375  307 1,025  2 15 26   
XVII 4.9 269 30 187 2 3 47   
XVIII 2.5 322 89 222 4 7    
XIX 2.2 22 4 10 8     
XX 2.6 208 55 153      
XXI 0.0 7 7       
Total 5.1 9,412  2,359  6,027  330 140 156 400 13.0 
Note:  For the calculation of averages, specific rates are excluded and the ad valorem  parts of alternate 
rates are included.  For lines subject to a tariff -rate quota, only the out -of-quota ra te is in cluded in 
the computation . 
Based on the HS 2012 nomenclature . 
Source:  WTO estimates based on data from EU and WTO -IDB. 
 
3.9.  At the HS chapter level, products in 19 chapters will remain  subject to duties (Chart 3. 1), 
most of them in  chapters 1 -24. The average MFN and preferential tariff on these lines varied 
between 5.4% and 41.8 %. The c hapters with the highest average tariffs were : tobacco 
(Chapter  24), preparations of vegetables, fruits nuts and plants (Chapter 20 ) and sugar and sugar WT/REG353/1  
 
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  confectionary (C hapter 17 ). In all of the 19 chapters the average preferential rate was the same 
than the average MFN rate.  In five cases, the average tariff coul d not be computed as the 
corresponding lines are subject to a specific duty or to the specific component of th e entry price 
system.  
Chart 3.1 EU: Average of dutiable rates on excluded lines, by HS Chapter  
051015202530354045
2 4 7 *8 *10 *11 *16 17 18 19 20 21 22 *23 24 29 33 35 38Average Duty Rate (%)
HS ChapterPreferential MFN
 
Note: For the calculation of averages, specific rates are excluded and the ad valorem  parts of alternate 
rates are included. The average tariff for chapters 8, 10, 11, 16 and 23 could not be computed as 
the corresponding lines are subject only to non -ad valorem  duties. HS chapter 8 contains nine tariff 
lines, all subject to the entry price system; and HS chapters 10 , 11, 16 and 23 contain specific 
duties only.  
 Based on the HS 2012 nomenclature.  
Source:  WTO estimates based on data provided by EU.  
 
3.1.3.2   Ukraine  
3.10.   Table 3.3 shows Ukraine's  tariff elimination co mmitments with respect to the EU .7 Before 
the entry in to force of the Agreement, 37.9% of Ukraine's tariff  lines were already duty free  on an 
MFN basis , which  corresponded to 53.7% of its imports from the EU during 2013 -2015. At the 
entry into force of the Agreement,  an additional 33.9% of lines  became d uty free for impo rts from 
the EU . Subsequent tariff eli minations , affecting another 24.7% of lines, are scheduled during a 
10-year transition period , with major changes occurring in 201 9. As a result, by 2026, 96.5% of 
Ukraine 's tariff will be  duty free for imports from th e EU, corresponding to 97.7 % of imports by 
value. Of the 367  lines that will remain dutiable, about two thirds  (233 lines)  will exhibit a tariff 
lower than 10% .  
Table 3.3: Ukraine: Tariff elimination comm itments under the Agreement and 
corresponding avera ge trade  
Duty phase -out 
period  Number of 
lines  % of total lines in 
Ukraine's tariff 
schedule  Value of Ukraine's 
imports from EU  
(2013 -2015)  
€ million  % of Ukraine's 
total imports 
from  
EU 
2013 -2015  
MFN (2016)  3,969  37.9 7,966.5  53.7 
2016 3,549  33.9 3,579 .3 24.1 
2017 19 0.2 13.8 0.1 
                                                
7 Of the total number of Ukraine's tariff lines (i.e. 10,465), 105 (or 1%) are not subject to ad valorem  
duties. These lines are subject to a specific duty.  WT/REG353/1  
 
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  Duty phase -out 
period  Number of 
lines  % of total lines in 
Ukraine's tariff 
schedule  Value of Ukraine's 
imports from EU  
(2013 -2015)  
€ million  % of Ukraine's 
total imports 
from  
EU 
2013 -2015  
2018 5 0.0 0.0 0.0 
2019 1,608  15.4 1,455.9  9.8 
2021 571 5.5 266.8  1.8 
2022 1 0.0 59.3 0.4 
2023 356 3.4 755.2 5.1 
2026 20 0.2 413.5  2.8 
Remain dutiable  367 3.5 334.5  2.3 
TOTAL  10,465  100.0  14,844.9  100.0  
Note:  For the calculation of averages, specific rates are excluded and the ad valorem  parts of alternate 
rates are included. For lines subject to a tariff -rate quota, only the out -of-quota rate is included in 
the computation.  
 Based on the HS 2012 nomenclature.  
Source:   WTO estimates based on data from Ukraine.  
 
3.11.   Table 3.4 shows Ukraine 's tariff elimination  by HS section with regard to the EU . The 
367 lines that remain subject to duties are found in sections I – IV and with average tariffs ranging 
from 8 % to 10 .5%. Sections I-IV include animal and vegetal products, animal and vegetable fats 
and oils, prepared foodstuff and beverages.  
Table 3.4 Ukraine: Tariff elimination under the Agreement, by HS Section  
HS 
Section  
MFN 
Average  
% 
No. of 
lines  
MFN 
duty-free 
lines  
2016  Num ber of additional duty -free lines under the 
Agreement  
Remain 
dutiable  
Avg. 
Final 
Tariff  
(Dutiable
) 2016  
2017  
2018  
2019  
2021  
2022  
2023  
2026  
I 6.8 974 329 25   77 114  222  207 8.9 
II 9.0 587 148 116 18 2 100 146  6  51 8.7 
III 9.2 149 23 46   18 36  13  13 8.0 
IV 9.5 901 96 217 1 3 282 162  44  96 10.5 
V 2.6 300 125 134   17 7  17    
VI 3.3 1,266  462 705   99       
VII 3.6 372 133 168   66 5      
VIII 6.0 136 15 58   59 4      
IX 0.9 212 177 35          
X 0.0 195 195           
XI 5.7 1,240  316 921    2 1     
XII 10.0 106  86   20       
XIII 7.0 272 28 92   127 25      
XIV 4.6 62 2 48   12       
XV 1.8 1,041  738 215   88       
XVI 2.7 1,640  791 484   309 54  2    
XVII 5.2 355 120 87   66 10  52 20   
XVIII 3.6 354 179 31   140 4      
XIX 6.2 66  35   31       
XX 5.7 230 85 46   97 2      
XXI 0.0 7 7           
Total  4.8 10,465  3,969  3,549  19 5 1,608  571 1 356 20 367 9.2 
Note:  For the calculation of averages, specific rates are excluded and the ad valorem  parts of alternate 
rates are  included . For lines subject to a tariff -rate quota, only the out -of-quota rate is in cluded in 
the computation . 
 Based on the HS 2012 nomenclature.  
Source:  WTO estimates based on data from Ukraine . WT/REG353/1  
 
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  3.12.   At the HS chapter level, the average preferential tariff s will range between 2.5% and 25.6% 
(Chart 3.2). The HS chapter with the high est average preferential tariff  at the end of 
implementation will be sugars and sugar confectionary (Chapter 17). In all of the 19 chapters that 
will remain dutiable the average p referential rate is lower than the current average MFN rate. The 
chapters showing the largest difference between the average MFN rate and the preferential rate 
are: vegetables (Chapter  7), lac, gums, resins and vegetable extracts (Chapter 13 ) and animal 
and vegetable fats and oils (Chapter 15 ). 
Chart 3.2 Ukraine: Average of dutiable lines, by HS chapter  
051015202530
01 02 03 04 05 06 07 08 11 12 13 15 16 17 18 19 20 21 23Average Duty Rate (%)
HS ChapterPreferential MFN
 
Note: Tariff lines subject to in -quota rates are excluded in the computation. For the calculation of 
averages, specific rates are excluded and the ad valo rem parts of alternate rates are included.  
 Based on the HS 2012 nomenclature . 
Source:  WTO estimates based on data provided by Ukraine.  
 
3.1.4   Tariff -rate quotas  
3.13.   Both Parties apply bilateral tariff -rate quotas (TRQs) under the Agreement in addition to the 
TRQs they mai ntain at the multilateral level; there is an overlap only in the case of the EU.  The 
TRQs under the Agreement apply indefinitely to certain agricultural products (Appendix to 
Annex  1A to Title IV)  and benefit from a zero -in-quota rate. Quantities  are allocated on a 
first-come, first -served basis  except for  some cases  in which the EU uses a  system of import 
licences . The EU applies preferential TRQs to 36 product  categories , which represent 323 tariff 
lines (at the 8 -digit level). These products incl ude meats, dairy products and sugars. Of these 
products, 76 lines are  also subject to TRQs at the multilateral level;  these include certain meats, 
eggs and sugars ( Table A1.1 in Annex 1 ). 
3.14.   Ukraine applies  preferential TRQs to three types of products: pork m eat, poultry meat and 
sugar , which correspond  to 91 tariff lines (at the 8-digit level) ( Table A2.1 in Annex 2 ). At the MFN  
level, Ukraine applies TRQs to raw sugar cane (product code 1701 11), which is not subje ct to a 
TRQ under the Agreement .8  
3.1.5   Entry pric e system  
3.15.   Under the Agreement, the EU maintains its entry price system for products listed in 
Table  3.5. This list contains 28  lines (at the 8 -digit level) covering 16  types of fruits and 
vegetables  such as tomatoes, cucumbers, apples and pears . Under this mechanism, a product is 
subject to a specific duty in addition to its ad -valorem duty if its price is lower than the minimum 
                                                
8 WTO Trade Policy Review of Ukraine 2016, WTO document WT/TPR/S/334  of 15 March 2016.  WT/REG353/1  
 
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  entry  price set out by the authorities . The ad -valorem component can vary with the season  
(Table  3.5), while the specific duty comp onent depends on the difference between the import price 
and the reference entry p rice. Under the Agreement, the EU sets the ad -valorem component to 
zero for imports originating in Ukraine.   
Table 3.5 Products subject to the EU entry price system  
Product  Tariff code  Ad-valorem  component under the EU entry price 
system  
Tomatoes  07020000  8.8% or 14.4% depending on the season  
Cucumbers  07070005  12.8% or 16% depending on the season  
Globe artichokes  07099100  10.4%  
Courgettes  07099310  12.8%  
Sweet oranges  08051020  3.2%, 4.8%, 10.4% or 16% depending on the season  
Clementines (including 
mandarins, tangerines, and 
satsumas)  08052010  
08052030 
08052050 
08052070 
08052090  16% 
16% 
16% 
16% 
16% 
Lemons  08055010  6.4%  
Apples  08081080  6.4%, 4.8% or 11.2% depending on the season  
Pears  08083090  8%, 4%, 2.5% or 10.4% depending on the season  
Table grapes  08061010  8%, 11.5%, 14.1%, 14.4% or 17.6% depending on the 
season and variety  
Apricots  08091000  20% 
Cherries  08092100  
08092900  12% 
12% 
Peaches (including) 
Nectarines  08093010  
08093090  17.6%  
17.6%  
Plums  08094005  6.4% or 12% depending on the season  
Grape juice  20096110  
20096919 
20096951 
20096959  22.4%  
40% 
22.4%  
22.4%  
Wine of fresh grapes  22043092  
22043094 
22043096 
22043098  22.4% +20.6  €/100kg  
22.4% +20.6 €/100kg  
40% +20.6 €/100kg  
40% +20.6 €/100kg  
Source:  EU Regulation No. 1101/2014 of 16 October 2014 amending Annex I to Council Regulation (EEC) 
No. 2658/87 on the tariff and statistical nomenclature and on the Common Customs Tariff . 
 
3.16.   Under the Agreement, Ukraine establishes a similar system for worn clothing ( product code 
6309 00 00) , for which duties will be gradually eliminated over five years, starting from 2017. In 
the same year, Ukraine will start apply ing a system of minimum entr y price  to these goods  so that 
if the import price is lower than the reference entry price an additional specific duty will apply . The 
reference entry price will be 30% of the annual average price (i.e. customs value) of  the two 
previous years. During the five-year transition period, the MFN rate will apply to  those imports 
whose value is lower than the reference entry price .  
3.2  Rules of origin  
3.17.   The rules of origin are described in Protocol I  of the AA , which defines the concept of 
"originating products" and describes  related  customs procedures .  
3.18.   The Partie s agree to establish a Customs S ub-Committee, which will inter alia  monitor the 
implementation of Chapter 5 on customs procedures and trade facilitation (see  section 3.4.5) and 
of Protocol  I and II . The Sub -Committee will report on its activities to the Association Committee 
and make recommendations when appropriate (Article 83 ).9 
                                                
9 The Parties indicated that they have already agreed on the rules and procedures of the 
Sub-Committee  thus enabling the organisation of its  first meeting.  WT/REG353/1  
 
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  3.19.   The Customs Sub -Committee may also decide to amend the provisions of Protocol I and to 
replace the rules of origin set out in Proto col I by those of the Pan-Euro-Mediterranean Regional 
Convention once Ukraine accedes  to this Convention (Article 39 of Protocol I). In this regard, the 
Parties indicated that Ukraine's application of accession was submitted in September 2016  and will 
be considered at the next meeting of the Convention's Joint Committee in February 2017 . 
3.2.1   Requirements for the determination of origin  
3.20.   Under the Agreement , a good qualifies as originating if it is:  
 wholly obtained or produced in one or both Part ies (articles 2 and 5 of Protocol I ); 
 produced in one of the Parties  using non -originating materials but which have undergone 
sufficient working or processing in the Party (A rticles 2 and 6 of Protocol I ). The working 
or processing requirements can take the form of a change in tariff classification (CTC); a  
regional value content  (RVC)  expressed as a percentage of the ex -works price10; a 
specific processing requirement  or any other appl icable requirement set out in Annex II  
of Protocol I.   
3.2.2   Cumulation  
3.21.   The Agreement allows f or bilateral cumulation  (Articles 3 and 4 of Protocol I to the 
Agreement) .11 
3.2.3   De minimis  rule 
3.22.   The Agreement includes a de minimis  provision, under which a good qualifies as originating 
if the value of all non -originating materials used in its production whic h do not satisfy the rules of 
origin in Annex II of Protocol do not exceed 10 % of t he ex -works price of the good and the 
corresponding RVC requirement, if any, is met . The de minimis  provision does not apply to textiles 
and clothing (chapters 50 -63) (Artic le 6 of Protocol I).  
3.2.4   Outward processing and absorption rule  
3.23.   Under  the principle of territoriality any originating good  exported from the P arties to another 
country and re -imported to the P arties will lose its originating status unless it is proved to the 
customs authorities that the returning good  is the same as the one that was exported and has  not 
undergone any operation beyond that necessary to preserve them in good condition while abroad . 
However as an exception to this principle the Agreement allows fo r an outward proc essing 
mechanism, under which  originating materials  that are subject to wor king or processing done 
outside the Parties do not lose their originating status once re -imported into the EU or Ukraine 
provided  that the total added value acquire d outside the EU or Ukraine does not exceed 10% of 
the ex -works price of the final product for which originating status is claimed. This provision does 
not apply to textiles and clothing  (chapters 50 -63) (Article 12  of Protocol I).  
3.24.   The A greement a lso allows for an absorption rule , which implies  that when determining the 
origin status of a final product, the Parties will not take into account the non -originating materials 
contained in an intermediate good that has acquired originating status and that has bee n used in 
the manufacture of the final product  (Article 6.1  of Protocol I) . 
3.2.5   Other factors affecting the originating status of a good  
3.25.   Protocol I also include s provisions on direct transport  and the non -application of drawback  
to non -originating materials . Under the principle of direct transport, preferential treatment applies 
only to products, satisfying  the requirements of Protocol I , which are transported directly between 
                                                
10 This criteria specifies the  maximum amount of non -originating materials that can be used as a 
percentage of the ex -work price . 
11 This implies that a Party can use originating inputs of the other Party in the product ion of a good as if 
they were their own, provided that the manufacturing operations carried out in the corresponding Party go 
beyond the operat ions described in Article 7 of Protocol I, which refer  inter alia to cleaning, washing, division, 
grouping, packi ng or repackaging.  WT/REG353/1  
 
- 20 - 
 
  EU and Ukraine . However, transport involving trans -shipment or temporary warehousing  in third 
countries is allowed in the case of products constituting one single consignment, provided that 
these products remain under the surveillance of the customs authorities in the country of transit or 
warehousing and do not undergo operations other t han unloading, reloading or any operation 
designed to pr eserve them in good condition. Originating products may be transported by pipeline 
across the territories of third parties. The Agreement also prohibits the application of drawback or 
any duty exempti on to non -originating materials used in the manufacture of originating  products  
(Articles 13 and 15 of Protocol I).  
3.26.   In addition, Protocol I specifies how to determine the (origin) status of sets of goods; goods 
sent for exhibition, accessories, spare part s and tools; and neutral elements (e.g. energy and fuel) 
used in the production of a good (Articles 9 to 11  and 14 ). Finally, the Protocol lists the operations 
that are considered insufficient to grant originating status . The list includes ironing, cleanin g, 
washing, division, assembling, packing or repackaging, as well as operations that guarantee the 
preservation of goods (Article 7 of Protocol I ). 
3.2.6   Administration of the rules of origin  
3.27.   The procedures for the administration of the  rules of origin are desc ribed in Protocol I to the 
AA (Articles 16 -36 of Protocol I) . To claim preferential treatment under the Agre ement, importers 
must present a movement certificate known as EUR.1 or , in certain cases , an "invoice declaration" , 
except for private packages and travellers' personal items worth less than €500 and €1200 
respectively (Article 27 of Protocol I) . Both documents are valid for four months . A movement 
certificate EUR.1 will be issued by the customs authorities of the exporting country following 
requests by exporters, while a n "invoice declaration " can be made by an approved exporter or by 
any exporter with a shipment consisting  of originating products whose  value does not exceed 
€6,000. The customs authorities can grant the status of approved exp orter to any frequent 
exporter subject to condi tions they consider appropriate; and withdraw it at any time.  
3.28.   The Parties commit to cooperate in the verification of the good's origin, including the  
authenticity of the movement certificate EUR.1 and the invoice decl arations . (Articles 32 -33 of 
Protocol I ). The verification of the proof of origin and investigation process is to be conducted by 
the customs authorities, who can inter alia  call for any evidence and conduct inspection visits . In 
the case of fraud by the e xporter, the P arties can impose penalties . In case a d ispute resulting 
from th e verification procedures cannot be resolved between the customs authorities of the 
Parties , the Parties will  submit it to the Trade  Committee. The legislation of the importing c ountry 
will rule on any dispute between the importer and the customs authori ties of the importing country  
(Articles 33 -34 of Protocol I) . 
3.29.   Finally , the Agreement indicates that although Ceuta and Melilla are not considered part of 
the European Union , produc ts originating in  Ceuta and Melilla and imported into Ukraine, or vice 
versa, would benefit from the same preferential regime established under the Agreement 
(Article  37 of Protocol 1).  
3.3  Export duties and charges, and quantitative restrictions  
3.30.   Export taxes  affecting trade between the Parties are prohibited under the Agreement.  
Currently Ukraine applies exports duties on an MFN basis to five product categories:  livestock, raw 
hide materials , some types of oil seeds, and waste and scrap of ferrous  and non -ferrous metals  
(Annex I -C to Title IV) . In accordance with the Agreement , Ukraine has set up a schedule  to 
progressively eliminate these duties for exports to the EU , which will be full removed in 2026 
(Table 3.6 ). 
3.31.   Under the Agreement, Ukraine may apply a "safeguard measure " for some of these goods if 
their annual exports to the EU exceed a certain level (Annex  I-D to Title IV) . These goods are : raw 
hide materials, sunflower seeds, and certain metal waste and scrap . The safeguard wil l take the 
form of a surcha rge to the export duty and can be applied during 15 years from 2017 to 2031, 
except for sunflower seed s for which the application period starts in 2016. The surcharge  and the  
trigger levels for applying it are specified in Annex I -D to Title IV. This addit ional duty is capped 
and varies  from 0.75% to 10% depending on the year and product.  In general, it  will increase WT/REG353/1  
 
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  steadily to reach 10% by 2023  and then be gradually eliminated by 2031. W hen used , the 
measure can be applied only for the remainder of the ye ar.  
Table 3.6  Export duties levied by Ukraine to EU, 2013 -2026  (Duties are expressed in % 
unless otherwise specified)  
Products and related products 
codes  
2016  
2017  
2018  
2019  
2020  
2021  
2022  
2023  
2024  
2025  
2026  
Live sheep, goats and bovine animals  
0102 90 05 00, 0102  90 21 00, 
0102 90 29 00, 0102  90 41 00, 
0102 90 49 00, 0102  90 51 00, 
0102 90 59 00, 0102  90 61 00, 
0102 90 69 00, 0102  90 71 00, 
0102 90 79 00, 0102  90 90 00, 
0104 10 10 00, 0104  10 30 00, 
0104 10 80 00 8 7.2 6.4 5.6 4.8 4 3.2 2.4 1.6 0.8 0 
Raw hides and skins  
4101*, 4102*, and 410390*  11 9.84 8.7 7.95 7.14 6.25 5 3.75 2.5 1.25 0 
Seeds of flax and sunflower and other oil seeds  
120400, 120600*, 1207  99 97 00 9.1 8.2 7.3 6.4 5.5 4.5 3.6 2.7 1.8 0.9 0 
Scrap of a lloyed ferrous metal s, nonferr ous metal s and semi -manufactured goods of them  
7202 99 80 00, 7415 29 00 00 , 
7415 39 00 00, 7419 99 10 00, 
8002 00 00 00, 8101 97 00 00, 
8105 30 00 00, 8113 00 40 00  13.64 10 9 8 7 6 5 4 3 2 0 
7204 21* , 7204  29 00 00*, 
7204 50 00 00*, 7218 10 00 00*, 
7401 00 00 00*, 7402 00 00 00*, 
7403 12 00 00*, 7403 13 00 00*, 
7403 19 00 00*, 7403 21 00 00*, 
7403 22 00 00*, 7403 29 00 00*, 
7404 00*, 7405 00 00 00*, 7406*,  
7418 19 90 00*, 7419*,  7503 00*, 
7602 00*, 7802 00 00 00*, 
7902 00 00 00*, 8108 30 00 00* 10 9 8 7 6 5 4 3 2 1 0 
Waste products and scrap of ferrous metals  
7204 10 00 00, 7204  30 00 00, 
7204 41 10 00, 7204 41 91 00, 
7204 41 99 00, 7204 49 10 00, 
7204 49 30 00, 7204 49 90 00, 
7204 50 00 00 9.5 
€/t 9.5 
€/t 7.5 
€/t 7.5 
€/t 5 
€/t 5 
€/t 3 
€/t 3 
€/t 0 0 0 
* Products subject to a safeguard measure . 
Source:  Annex I-C to Title IV of the AA.  
 
3.32.   The Agreement also forbids the adoption or maintenance of any measure that prohibits or 
restri cts exports of  the other Party , except as otherwise provided in the Agreement or in 
accordance with  Article XI of the GATT 1994 and its relevant provisions under the WTO, which are 
incorporated into the Agreement  (Article 35) . Export price requirements are also prohibit ed in 
accordance with WTO provisions . 
3.4  Regulatory provisions on trade in goods  
3.4.1   Standards  
3.4.1.1   Sanitary and phytosanitary measures  
3.33.   In Chapter 4  of Title IV on sanitary and p hytosanitary (SPS) measures, the Parties re -affirm 
their rights and obligations under the WTO SPS Agreement. Ukraine further agrees to gradually 
approximate  its SPS and animal welfare legislation to that of the EU (Article 63) . To do so, Ukraine WT/REG353/1  
 
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  shall submit not later than three months after the entry into force of the Agreement a 
comprehensive  strategy for the implementation of this chapter (Article 64). The Parties indicate 
that Ukraine submitted it s strategy in March 2016 and that t he adoption of  the document by the 
SPS Sub-Committee is being prepared. O nce adopted it  will become an integral part of the AA. 
3.34.   In case of serious public, animal or plant health  concerns , the  Agreement allows the 
imposition of provisional measures necessary to protect public, animal and plant health  
(Article  73). The chapter also include s provisions on recog nition o f animal health and pest status of 
the P arties (Article 65), determination of equivalence (Article 66), transparency (Articles 67 -68), 
certification procedures (Article 70 ), verification procedures (Article 71) , import checks , and 
inspection fees (Article 72). 
3.35.   Finally , the Parties agree to  establish  a SPS management Sub -Committee , whose functions 
include monitoring  the implementation of this  chapter (Article 74).  The Sub -Committee is  to meet 
within th e first three months after the A greement 's entry into for ce. The Parties indicated  that the 
first meeting of the SPS Sub -Committee is currently scheduled for the first half of 2017 .  
3.4.1.2   Technical barriers to trade  
3.36.   Chapter 3  of Title IV on Technical Barriers to Trade (TBT) applies to the preparation, 
adoption and ap plication of  all standards , technical regulations  and conformity assessment 
procedures .12 The Parties reaffirm their rights and obligations under the WTO TBT Agreement 
which is incorporated into the A greement (Article 54). The Agreement also requires the 
approximation  of the Parties' TBT measures , which implies that Ukraine must take  the necessary 
measures to align its technical regulations and national legislation with those of t he EU . With this 
objective, Ukraine shall gradually  incorporate the EU regulati ons listed in Annex III to Title IV into 
its legislation according to the corresponding timetable. The implementation period varies between 
one to five years from the d ate of entry into force of the A greement. Ukraine shall  also 
progressively transpose the  European  standards as its national standards and withdraw any 
conflicting national standard ( Article 56). The P arties also agree to conclude  an Agreement on 
Conformity Assessment and Acceptance of Industrial Products (ACAA) and add it as a Protocol to 
the AA once its TBT  related legislation has been fu lly aligned with that of the EU. Under the ACAA, 
trade between the EU and Ukraine for the goods covered will take place under the same conditions  
as trade between EU Member States  (Article 57) . The Chapter al so includes provision s on technic al 
cooperation (Article 55), marking and labelling (Article 58).   
3.37.   The A greement does not have any specific provision on dispute settlement regarding TBT 
issues.  
3.4.2   Safeguard mechanisms  
3.38.   The Agreement allows for the application  of global safeguards, as well as bilateral 
safeguard s for motor vehicles , metals and agricultural goods . It also provides for a bilateral 
safeguard under the SPS Chapter. The Agreement does not include any specific provision 
regarding safeguard measures  for balance o f payments reasons or special safeguard s. 
3.39.   The same good cannot be subject simultaneously to a bilateral and a global safeguard 
(Article 45 bis). 
3.4.2.1   Global safeguards  
3.40.   The Agreement does not confer any additional right or obligation  on the Parties w ith regard 
to actions taken under Article XIX of GATT 1994 and the WTO Agreement on Safeguards , except 
that imports from the other Party can be excluded from the imposition of global safeguards to the 
                                                
12 The c hapter does not apply to SPS measures and government procurement requirements (Article 53) . WT/REG353/1  
 
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  extent that Ukraine qualifies as a developing country  in accordance with Article 9 of the WTO 
Agreement on Safeguards  (Article 43) .13 
3.41.   The Parties reaffirm their rights and obligations under Article XIX of GATT 1994 and the 
WTO Agreement on Safeguards regarding the application of global safeguards, except for 
provisions regarding compensation and retaliation if they are incompatible wi th the Agreement. 
(Article 40). The EU also retains its rights and obligations under Article 5  (Special safeguards 
provisions) of the WTO Agreement on Agriculture, except for agricu ltural products subject to 
preferential tre atment under the A greement.  
3.42.   The A greement mentions only briefly t he conditions of application of the safeguard 
measure . A Party initiating a safeguard investigation shall notify the other party in writing if it ha s 
a substantial economic interest.  Under the Agreement, a Party has a substantial economic interest 
if it is among  the five  largest  importers of that product during the most recent three years  
(Article  41). Before applying a safeguard measure, the Party mu st notify the other Party and give 
the possibility to hold consultations. If no satisfactory solution is found within 30 days following the 
notification, the Party can proceed with the adoption of the corresponding measure (Article 42).  
3.43.   The dispute settlem ent mechanism under the Agreement ( see section  5.6) does not apply to  
the provisions on global safeguards (Article 52).   
3.4.2.2   Bilateral safeguards  
3.44.   The Agreement allows Ukraine to apply  a bilateral safeguard  on European passenger motor 
vehicle import s (Product c ode 8703) during a period of 14  years , starting from the second year 
after the A greement 's entry into force, provided that certain conditions are met. The conditions 
are: a) if following the Agreement 's entry into force an increase in the imports of motor vehicles  
from the EU  causes serious injury to Ukrainian industry  producing a like good ; b) if the number of 
motor vehicles  imported from the EU exceeds 45,000 units per year ; and c ) if the number of motor 
vehicles  imported from the EU for the last 12 month s prior to consultations exceeds 20% to 25% 
(depending on the year) of all new registrations of passenger motor vehicles  in Ukraine during the 
same period (Article 44 and Annex 2 to Title  IV).  
3.45.   The safeguard measure  can be applied only following an investi gation  and will consist of an 
additional duty, which , combined with the corresponding import duty, cannot exceed the lesser of 
10% or the MFN applied tariff in effect the day before the Agreement entered into force  or at the 
time the action was  taken . The safeguard  can be applied only for the remainder of  that year. They  
cannot be extended  but can be imposed again after one year .14   
3.46.   During the 10 -year transition period15, Ukraine can apply the  safeguard measure without 
necessarily conducting an investigation  and proving that the imports in question can cause serious 
injury to the domestic industry (Paragraph 13 Article 44) , subject to the notification and 
consultation procedures under Article 44(5) . 
3.47.   The Agreement also allows Ukraine to apply a bilateral safeg uard on exports to the EU of 
certain agricultural an d metal goods (see section 3.3).  
3.48.   Under the SPS Chapter of the Agreement, t he importing Party can also apply provisional 
safeguard measures o n the basis of serious public, animal or plant health concerns.  The Party  
applying the measure  must inform the other Party no later than one working day following the 
date of its adoption and hold  consultations  upon request by either Party within 15 working days of 
the notification. The Agreement  does not specify the type of measure that can be applied  but 
indicates that t he Parties  shall endeavour  to avoid unnecessary disruption to trade (Article 73) . 
                                                
13 In accordance with Article 9 of the WTO Agreement on Safeguards on the non -application of 
safeguard measures to imports from developing countries, the EU commits not to apply any safeguards to 
Ukrainian goods.  
14 Information provided by the Parties' authorities and Article 44 of the Agreement.  
15 Renewable for three additional years upon request (Article 45 of the Agreement).  WT/REG353/1  
 
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  3.4.2.3   Safeguards related to the balance of payments  
3.49.   The Agreement is silent on the applica tion of safeguard s in case of diff iculties related to the 
balance of payments for trade in goods. However, it contains provisions in relation to current 
payments an d movement s of capital (see section 4.5.4 ).  
 
3.4.2.4   Special safeguards  
3.50.   There are no provisions in the Agreement regarding special sa feguards. However, the 
Agreement includes a reference to Article 5 of the WTO Agreement on Agriculture which deals with 
special safeguards.  
3.4.3   Anti-dumping and countervailing measures  
3.51.   The Parties confirm their rights and obligations under WTO Agreements regar ding the 
application of antidumping and countervailing measures  (Article 46 ). The A greement also include s 
provisions on transparency (Article 47), conditions of application (and non-application ) (Article s 48 
and 50 ), the amount of the provisional or defini tive anti -dumping or countervailing duty 
(Article  49), consultations (Article 50 bis) and the establishment of an expert -level dialogue on 
trade remedies (Article 51).  
3.52.   The dispute settlement mechanism under the Agreement (see section  5.6) does not apply to  
disputes between the Parties on antidumping and countervailing measures (Article 52).   
3.4.4   Subsidies and State aid  
3.53.   The Agreement  prohibits the application of e xport subsidies  (or other measures with 
equivalent effect)  on agricultural good s (Article 32 ).  
3.54.   In general, any S tate aid that distorts (or threatens to distort ) competition and affect trade 
among the P arties is incom patible with the functioning of the Agreement  (Article 262) . With the 
view of ensuring transparency in th e area of S tate aid, every year  the Parties must  notify  each 
other  the type of S tate aid, its total amount and sectoral distribution , that may affect their bilateral 
trade. Any aid below EUR 200 ,000 o ver a period of three years does not need to be notified  
(Article 263) . Ukraine also commi ts to adopt national S tate aid legislation, and establish within 
three years  of the entry into force of the  Agreement  an independent authority to monitor that the 
State aid is granted according to the principles set out i n the Agreement .16 This body will be  
responsible  for inter alia  authorising  State aid schemes and grants , and to o rder the recovery of 
State aid that has been unlawfully granted. Ukraine will  also establish an inventory of aid schemes 
instituted before the establishment of the authority and make them compatible , within a period of 
respectively five and seven years from the entry into force of th e Agreement  (Article 267) . 
3.55.   The provisions of State aid shall apply to goods , and to the services listed in Annex XVI to 
Chapter 6 (Establishment, Trad e in Services and Electron ic Commerce)  of Title IV , except subsidies 
to products covered by Annex 1 to the WTO Agreement on Agriculture and other subsidies covered 
by the Agreement on Agriculture  (Article 266).  
3.4.5   Customs -related procedures  
3.56.   Chapter  5 of Title  IV sets out the provisions on customs procedures  and trade facilitation , 
which are complemented by Protocols  I and II to the AA . Protocol I provides for  the definition of 
"originating products" and methods of administrative cooperation (see section 3.2), while 
Protocol  II deals with  mutual administrative assistance in customs matters.  
3.57.   The Parties incorporate the WTO Agreement on Customs V aluation in to the Agreement  and 
agree to not use minimum customs values. Ukraine further agrees to gradually align its customs 
                                                
16 Ukraine  indicated in this regard that it  adopted on 1 July 2014 the "Law on State aid to undertakings" 
which establishes Ukraine's Anti-monopoly Committee  which will be the national body responsible for state aid 
issues. This law is expected to enter into force in Aug ust 2017.  WT/REG353/1  
 
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  legislation to the EU legislation as set out in Annex XV. The timeline for the approximation varies 
from one to three years depending on the law.   
3.58.   Moreover, in order to streamline its customs procedures  and improve transparency, the 
Parties  shall inter alia  eliminate any requirement for the mandatory use of customs brokers and of 
pre-shipment inspections (Article 76) . They also shall make publicly available their respective laws  
and procedures  (Article 77 ) and prohibit the application of any adminis trative fee equivalent to 
import or export duties and charges  (Article 78).  
3.59.   Other articles in Chapter 5 include  provisions on customs cooperation (Article 80), mutual 
administrative assistance in customs matters (Article 81), and technical assistance and capacity 
building (Article 82).   
3.5  Sector -specific provisions on trade in goods  
3.60.   In addition to the sector -specific provision s mentioned in previous sections (e.g. provisions  
on agricultural export subsidies ), the Agreement includes a chapter on trade -related  energy issues  
(Chapter 11) , which contains  provisions on energy goods (i.e. natural gas , electrical energy and 
crude oil ). In particular, the Parties prohibit the application of c ustoms duties and quantitative 
restrictions on the bilateral trade of energy  goods and of any measure  having equivalent e ffect 
(Article 271). They also  prohibit , without prejud ice to the possibi lity to  regulate  domestic prices in 
accordance with the Agreement, the adoption of any measure resulting in a higher price for 
exports of energy goods to the other Party than the ir price in the domestic market . Other 
provisions cover inter alia  cooperation on gas transmission infrastructure and storage facilities 
(274); and licensing for the prospection, exploration, and production of hydroc arbons (Article 
280).  
4  PROVISIONS ON TRADE IN SERVICES  AND INVESTMENT  
4.1  Scope and definitions  
4.1.  Trade in se rvices is governed by Chapter 6  of Title IV . The Chapter consist s of 6 sections 
which cover inter alia  cross-border trade in services, establishment  of investors, electronic 
commerce  and movement of natural persons . Section 3 on c ross-border trade in services covers 
GATS modes of supply 1 (Cross border trade) and 2 (Consumption abroad) , while Section 2  on 
establishment covers mode 3. Chapter 6 is  complemen ted by Annexes XVI -A to XVI -F which 
contain the Parties' commitments for modes 1 and 2, the lists of reservations for mode 3 and the 
reservations regarding the movement of natural persons  (mode 4).  
4.2.  Investment is not specifically addressed in the Agreement.  However , disciplines on 
establishment do indirectly cover investment -related matters. In fact, the A greement defines an 
investor  as any natural or legal person of a Party that seeks to perform or performs an economic 
activity through setting up an establi shment  in the territory of the other Party (Article 86).  
4.3.  Commitments in modes 1, 2 and 3 apply to  all sectors, ex cept for audio -visual services,  
maritime cabotage services  and most of  air transport services.  The Agreement's coverage 
regarding  air transpor t services is broader than in the GATS as it covers ground handling services 
and airport operation services  (excluded from  the GATS ) in addition to aircraft repair and 
maintenance services, computer reservation system services, and sale and marketing of ai r 
transport (Article 92) . For mode 3, mining, manufacturing and processing of nuclear materials as 
well as arms and munitions are excluded (Article 87) .  
4.4.  Chapter 6 does not apply to government procurement which is covered in Chapter 8, 
subsidies covered in  Chapter 10, measures affecting natural persons seeking access to the  labour 
market of a Party , or to measures regarding citizenship, residence or employment on a permanent 
basis (Article 85).  
4.5.  The Agreement contains a review clause under which the Parties will regularly review their 
lists of commitments within the Trade Committee with the view of progressive ly liberali ze their 
cross-border supply of services. The review shall  take into account the progress made in WT/REG353/1  
 
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  transposing, implementing and enforcing the  EU legislation and its impact on the elimination of 
remaining obstacles to cross -border supply of services between the Parties (Article 96).   
4.2  Denial of benefits  
4.6.  The Agreement does not contain a "denial of benefits " provision per se . However,  the 
Agreemen t indicates that only companies set up in accordance with the EU or Ukraine legislation  
that have their main office registered in the terri tory of the corresponding Party  and that possess a 
"real and continuous link" with the economy of, at least, one of th e Parties  can access the benefits 
of the Agreement  (Article 86) .  
4.7.  Shipping companies established outside the Parties but controlled by nationals of one of the 
Parties can be benefic iaries of the provisions of the Agreement  if their vessels are registered in 
that Party  and fly the flag of one of the Parties (Article 86).  
4.3  General provisions on trade in services  
4.3.1   Market access  
4.8.  The Parties agree to grant services and service suppliers of the other Party treatment no less 
favourable than that provided for in thei r lists of commitments (Annexes XVI -B and XVI -E to 
Chapter 6)  with respect to measures affecting the cross -border supply of services  (modes 1 -2). 
Unless  otherwise specified in their list of commitments , a Par ty can not maintain or adopt  any of 
the following  measures in the sectors committed : (a) limitations on the number of services 
suppliers whether in the form of numerical quotas, monopolies, ex clusive service suppliers or  the 
requirements of an economic needs test; (b) limitations on the total value of se rvice transactions 
or assets in the form of numerical quotas or the requirement of an economic needs test; (c) 
limitations on the total number of service operations or on the total quantity of service output 
expressed in the terms of designated numerical u nits in the form of quotas or the requirement of 
an economic needs test (Article 93).  
4.9.  The Agreement 's provision on market access does not make any reference to the other three 
type of limitations described in Article XVI of the GATS, namely, limitations on  the total number of 
natural persons that may be employed in a particular sector; limitations on the participation of 
foreign capital and requirements  regarding the type of legal entity for companies.   
4.3.2   National and MFN  treatment  
4.10.   In sectors where market acc ess commitments are undertaken , each Party shall grant 
national treatment to services and servic e suppliers of the other Party with respect to any measure  
affecting the c ross-border supply of services . The Agreement does not make reference to MFN 
treatment  (Article 94) . 
4.11.   The Parties agree to grant  MFN and national treatment with respect to the establishment of 
subsidiaries, branches and representative offices of legal persons of the other  Party subject to their 
respective list s of reservations  (Annexes XVI -A and Annexes XVI -D). The P arties further agree not 
to adopt any new discriminatory measure affecting the establishment in their territories or the 
operation of l egal persons of the other party  (already established)  by comparison with their own 
legal person s (Article 88). WT/REG353/1  
 
- 27 - 
 
  4.3.3   Commercial presence  
4.12.   Section 2 of  Chapter 6 of Title IV  deals with the establishment of natural and l egal persons.  
The Parties allow the establishment of natural and legal persons of a party to conduct an economic 
activity in the territory o f the other Party and make commitments on national and MFN treatment 
(see section 4.3.2) according to a negative list approach. Its commitments apply to all measures 
affecting establishment subject to the reservations listed in Annexes XVI -A and XVI -D and to all 
sectors except for mining, manufacturing, audiovisual, national maritime cabotage , processing of 
nuclear materials, arms and munitions, and most of air transport services (Article 87).   
4.13.   Under the A greement, the definition of economic activities that  natural and legal persons of 
a party can undertake by establishing themselves in the territory of the other party seems to cover 
not only services but also goods  as it includes activities of "an industrial, commercial and 
professional character" (Article 86). 
4.14.   The P arties agree to regularly review the legal framework on establishment with the 
objective of progressively liberalising the establishment conditions , and including provisions on 
investment protect ion and on investor -to-State dispute settlement (Article 89) .  
4.3.4   Movement of natural persons  
4.15.   Section 4 of Chapter 6  describes the conditions for the temporary entry of business persons 
in the Parties' territory . The section is complemented by  Annexes XVI -C and XVI -F which contain 
the Parties' list s of reserv ations with respect to the movement of contractual services suppliers and 
independent professionals. As mentioned earlier, Chapter 6 (and thus the section) does not apply 
to measures affecting natural persons seeking access to the employment market of a Pa rty and 
measures regarding nationality, residence or employment on a permanent basis. Under the 
Agreement, the definition of natural persons covers only the na tionals of a Party which is in line 
with the definition used in the GATS  (Article 86) .17 Upon the fulfilment of certain conditions , the 
Parties commit to authorize the temporary entry of: (a) key personnel , which comprise  business 
visitors and intra -corporate transferees , (b) graduate trainees, (c) business services sellers, and 
(d) subject to reservat ions ( Annexes XVI -C and XVI -F) the temporary entry of contractual services 
suppliers and independent professionals  in certain  sectors . For cont ractual services suppliers , the 
Parties made commitments for professionals services listed in the WTO Services Se ctor 
Classification (W120), except for auditing services, medical, dental, veterinary services, researc h 
and development services, computer and related services , services provided by medical personnel , 
and certain business services (e.g. advertising servic es). The entry of independent professionals is 
allowed to conduct  legal, architectural, engineering, computer management consulting and 
translation services  (Articles 101 and 102, and Annex XVI -F to Chapter 6) .  
Table 4.1 Authorized business persons by the Parties  
Authorized categories and scope of application  Length of stay that is allowed by the 
Parties  
Key personnel   
Key personnel comprise  business visitors and intra -corporate 
transferees  (managers and s pecialists) . Business visitors are 
responsible for setting up a commercial presence.   Maximum three years.  
Graduate t rainees   
Graduates employed in a company of a Party who are temporary 
transferred to an establishment in the other party for training or  
career development purposes.   Maximum one year.  
Business services sellers   
Representatives of a company of one Party who seek  to negotiate 
on behalf of its company the sale of a service in the other party.  Maximum 90 days per year  
Contractual services  supplier   
Employees of a company of one Party without commercial 
presence in the other Party , who enter that Party to supply a 
service pursuant to a contract con cluded by its company and 
operate in any of the sectors listed in Article 101.  Cumulativ e pe riod of maximum six 
months and in the case of Luxemb ourg 
for a period 25 weeks or the duration of 
the contract  which cannot exceed one 
year, whichever is less.  
                                                
17 Under the GATS, natural persons cover only nationals as n either Party has made any notification 
under GATS Article XXVIII  (k) to include residents in the definition of natural persons . WT/REG353/1  
 
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  Authorized categories and scope of application  Length of stay that is allowed by the 
Parties  
Independent professionals   
Self-employed person of a Party who pursuant to a contract 
seeks t o temporarily enter the other Party to supply a service 
covered by Article 102 to a consumer there.  Cumulativ e period of maximum six 
months and in the case of Luxemb ourg 
for a period 25 weeks or the duration of 
the contract  which cannot exceed one 
year, whichever is less.  
Source:  Section 4 of Chapter 6 of Title IV of the A A. 
 
4.3.5   Performance requirement  
4.16.   The Agreement does not contain any specific provision on performance requirements.  
4.3.6   Senior Management and boards of directors  
4.17.   The Agreement does not contain an y specific provision regarding the composition of 
senior/executive management of companies.  
4.4  Liberalization commitments  
4.18.   The liberalization of trade in services follows a  hybrid approach: commitments in modes 1 
and 2 are schedu led according to a positive  list, while commitments in mode  3 are scheduled 
according to a negative list , which mean s that provisions on e stablishment  apply to all sectors, 
unless otherwise specified in the Parties' lists of reservations. Audio -visual  services  are excluded 
from liberali zation . 
4.19.   Annexes XVI-A and XVI -D to Title IV contain the Parties' list of reservations with respect to 
mode 3. Annexes XVI -B and XVI -E contain the Parties' list of commitments for modes 1 and 2. 
Finally, Annexes XVI -C and XVI -F contain the Parties' list of reservations with respect to the 
movement of contractual services suppliers and independent professionals.  
4.20.   The following sections refer to the Parties horizontal and sector -specific commitments for 
modes 1 -3. Commitments (in terms of scope) in Mode 4 are described in section 4.3.4.  
4.4.1   The EU  
4.21.   Under the Agreement , the EU made commitments for modes 1 and 2 in all the 11 sectors of 
the WTO Services Sector Classification and more specifically in about 90 subsectors out of the 
155 subsectors  identified in that  classification .18 For mode 3, it listed three horizontal reservations 
and a number of reservations affecting seven of the eleven  sectors of the WTO Classification (or 
16 subsectors) . The sectors in which  no reservations are listed are: communications, construct ion, 
education and environmental services.  In general, commitments by the EU consist of a general 
provision plus country -specific provision s that reflect  the particularities of each EU Member S tate. 
4.22.   The following section describes the EU commitments under the Agreement and compare s 
them to its GATS schedule. This exercise is based on the consolidated version19 of the GATS 
schedule for the EU( 25), which was certified by WTO Members on 18 December 2006 (S/L/286) .20 
The process of certification of th e GATS sched ules for the EU(27) and EU(28) is still ongoing . 
4.4.1.1   Horizontal commitments  
4.23.   Under the Agreemen t, the EU reserve s the right to maintain public monopolies or grant 
exclusive rights to private operators for economic activities that are considered as public utilit ies. 
It also reserves the right to grant  different  treatment to subsidiaries of Ukrain ian companies  
established in the EU and to branches or agencies. For some sector s, it maintains an establishment 
                                                
18 This Factual Presentation follows the WTO Services Sector  Classification list, which is based on the UN  
Central Product Classification (CPC) (WTO document MTN.GNS/W/120). The list comprises 11 sectors and 155  
subsectors . 
19 The WTO ratification of the consolidated version is still pending.  
20 WTO document S/C/W/2 73, and Add.1 and Suppl.1.   WT/REG353/1  
 
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  requirement and some EU Members States limit the acquisit ion of real estate, in particular 
agricultural, forest and border land, by foreign nationals and companies. The same reservations 
are included in the EU GATS schedule.  
4.4.1.2   Sector -specific commitments   
4.24.   Compa red to its GATS schedule, EU 's sect or-specific commitm ents are in general  broader.  
4.25.   Table 4.2 compares the EU's sectoral commitments under the Agreement and under its 
GATS schedule for modes 1 -3. 
Table 4.2 The EU 's sector -specific liberalization under the Agreeme nt, excluding mode 4  
Sectors (CPC Classification)  GATS  RTA 
Sectoral 
commitmentsa Sectoral commitmentsb 
under the FTA  
1. Business services  Partial  Improved  
A. Professional  Services  Partial  improved  
B. Computer  and Related  Services  Partial  improved  
C. Research  and Development  Services  Partial  improved  
D. Real  Estate  Services  Partial  improved  
E. Rental/Leasing  Services  without  Operators  Partial  improved  
F. Other  Business  Services  Partial  improved  
2. Communication services  Partial  Improved  
A. Postal services  No commitments  improved  
B. Courier  services  Partial improved  
C. Telecommunication  services  Partial  improved  
D. Audiovisual  services  No commitments  same  
E. Other  No commitments  improved  
3. Construction and related engineering services  Partial  Improved  
A. General  construction  work for buildings  Partial improved  
B. General  construction  work for civil Engineering  Partial improved  
C. Installation  and assembly  work  Partial improved  
D. Building  completion  and finishing  work  Partial impro ved 
E. Other  Partial improved  
4. Distribution services  Partial  Improved  
A. Commission  agents'  services  Partial  improved  
B. Wholesale  trade services  Partial  improved  
C. Retailing  services  Partial  improved  
D. Franchising  Partial  improved  
E. Other  No commitments  improved  
5. Education services  Partial  Improved  
A. Primary education services  partial  improved  
B. Secondary education services  partial  improved  
C. Higher education services  partial  improved  
D. Adult education  partial  improved  
E. Other ed ucation services  partial  improved  
6. Environmental services  Partial  Improved  
A. Sewage services  partial  improved  
B. Refuse disposal services  partial  improved  
C. Sanitation and similar services  partial  improved  
D. Other  partial  improved  
7. Financial  services  Partial  Improved  
A. All insurance  and insurance -related  services  Partial  improved  
B. Banking  and other financial  services  Partial  improved  
C. Other  No commitments  same  
8. Health related and social services  Partial  Improved  
A. Hospital servi ces partial  improved  
B. Other Human Health Services  partial  improved  
C. Social Services  partial  improved  
D. Other  partial  improved  
9. Tourism and travel related services  Partial  Improved  
A. Hotels  and restaurants (including catering)  partial  improved  
B. Travel  agencies  and tour operators  services  partial  improved  
C. Tourist  guides  services  partial  improved  
D. Other  partial  improved  WT/REG353/1  
 
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  Sectors (CPC Classification)  GATS  RTA 
Sectoral 
commitmentsa Sectoral commitmentsb 
under the FTA  
10. Recreational and cultural and sporting services  Partial  Improved  
A. Entertainment  services  partial  improved  
B. News agency services  partial  improved  
C. Libraries, archives, museums and other cultural services  partial  improved  
D. Sporting and other recreational services  partial  improved  
E. Other  No commitments  improved  
11. Transport services  Partial  Improved  
A. Maritime Transport Services  Partial  improved  
B. Internal Waterways Transport  Partial  improved  
C. Air  Transport  Services  Partial  improved  
D. Space  Transport  No commitments  same  
E. Rail  Transport  Services  Partial  improved  
F. Road  Transport  Services  Partial  improved  
G. Pipeline  Transport  Partial  improved  
H. Services  auxiliary  to all modes  of transport  Partial  improved  
I. Other  Transport  Services  partial  improved  
a Except as indicated in the GATS horizontal commitments.  
b Except as indicated in the Agreement horizontal reservations.  
4.4.1.2.1   Business services  
4.26.   Business activities, in particular professional services, are subject to a number of 
country -specific reservations.  
4.27.   In professional services, the EU expands its geographical coverage in particular in  mode 2. 
Mode 1 remains subject to restriction s or largely unbound for a number of subsectors such as 
auditing services, engineering services, medical and dentals services, veterinary services, 
midwives services, which reflect to a large extent the commitm ents under the GATS .  
4.28.   The EU made full commitments for modes 1 -2 for computer and related services , which are 
unbound or restricted for a few EU Member S tates under the GATS. In real estate services and 
rental/leasing services without operators, it also ma de broader commitments in mode s 1-2 by 
expanding their geographical coverage , while maintaining some establishment requirements. In 
research and development services, unbound for most EU Member S tates under the GATS, the 
Agreement includes only one restric tion under which the EU  reserves the right to grant 
rights/authorization for publicly funded R&D services only to EU nationals and companies having 
their headquarters in the EU.  
4.29.   In other business, the EU made full commitments for modes 1 -2 in advertising, market 
research and public opinion polling services, management consulting services, services incidental 
to manufacturing, packaging, printing, publ ishing, and convention services, which are restri cted or 
unbound for certain EU Member S tates under the GATS . The EU made also some commitments in 
scientific and technical consulting services, which are excluded under the GATS.  Other business 
activities remain subject to restri ctions or largely unbound like , for instance , investigation services 
or placement and supply services of personnel.  
4.30.   In mode 3, the EU listed a number of reservations  for business activities . Most of these 
reservations apply at the country level, and to legal servi ces and auditing services. Reservations 
include residency requirements, and fo reign capital restrictions.   At the supranational  level, the EU  
does not make  any national and MFN treatment commitment s with respect to legal advisory and 
certification services, such as those provided by notaries . 
4.4.1.2.2   Communication services   
4.31.   In communication  services, the EU expan ds its commitments by adding postal services, 
which are excluded from its GATS schedule and making full commitments in courier services, 
which are bound only for  a few EU Member States  under the GATS.  WT/REG353/1  
 
- 31 - 
 
  4.32.   In addition, the EU expand s its commitments in modes 1 and 3 to all its members for all 
services consisting of the transmission and reception of signa ls by electromagnetic means , which 
are unboun d or restricted for certain EU Member States  under the GATS . For instance, under the 
GATS, France limits foreign capital and voting rights to 20% for companies operating radio -based 
infrastructure for the provision of telecommunication services. This reservation is removed under 
the Agreement.   
4.4.1.2.3   Construction and related engineering services  
4.33.   In con struction and related engineering services, the EU expands sectoral coverage, which 
is lim ited for certain EU Member  States under the GATS , and mak es full commi tments in 
modes  1-2 for all EU Member States . It also made full commitments under mode 3 , which is 
unbound or subject to restriction s in some cases under the GATS. For instance, under the GATS, 
Greece applies a nationality requirement for managers of the board of directors of construction 
companies supplying in the public sector, while Italy and Port ugal reserve the right to grant 
exclusive rights for maintenance  and management  of highways.  
4.4.1.2.4   Distribution services   
4.34.   In wholesale trade services and  retailing services, the EU made commitments only for 
mode  1 and not mode 2 under the Agreement, w hich is  line with its GATS schedule. In mode 1, it 
made some broader commitments by removing some restrictions at the country level while 
maintaining others. For instance Italy maintains its reservation on state monopoly on tobacco for 
wholesale services, but Spain a nd Poland remove  theirs . France also continues  to maintain its 
GATS reservation on the wholesale of pharmaceuticals.  In mode 3, the EU lists a number of 
reservations under the Agreement and reserves the right  for instance to apply any non -conforming 
measur e with respect to national and MFN treatment for the distribution of alcohol, 
pharmaceutic als and tobacco for certain EU Member States , such as Austria, Finland and Hungary.  
4.35.   In franchising  services, which are unbound for a few EU countries  under the GATS , the EU 
expands its GATS commitments to all EU Member States  for modes 1 -3. 
4.4.1.2.5   Education services  
4.36.   Like in the GATS, commitments in educational services under the Agreement cover s only 
privately funded services and are subject to restrictions in modes 1 and 2 . Commitments in these 
modes  reflect to a  large extent those in the GATS and remain unbound for some countries, like  for 
instance Cyprus, France, Finland, Malta,  and Sweden. In mode 3, the EU reserves the right to 
apply any non -conforming measure with respec t to national and MFN treatment for publicly funded 
health, social and education services. In the case of privately funded education services, it 
expand s the geographic al coverage for some activities but maintains nationality requirements for 
the members o f the management  boards, as well as some  other country -specific reservations.   
4.37.    In a few  cases, like Italy and Latvia, some commitments for modes 1 -2 in education 
services under the Agreement seem more stringe nt than under the GATS schedule, while in some 
others, like for Austria,  seem broader.  
4.4.1.2.6   Environmental services  
4.38.   In environmental services, t he EU made full commitments in mode s 2 and 3, which are  
unbound under the GATS for some countries (e.g. Cyprus, Malta and Poland). Mode 1 remains 
largely unbound, wh ich reflects to a large extent the GATS schedule. In mode 1 , commitments  are 
made but only with respect to environmental consultancy services.   
4.4.1.2.7   Financial services  
4.39.   Together with business services, the financial  sector has the largest number of restricti ons. 
In insurance and insurance related services , the EU made full  or partial commitments , depending 
on the country , for modes 1 -2 in insurance services for  risks relating to maritime shipping and 
commercial aviation and  space launching and freight (including satellites) . In some cases, its 
commitments also cover related intermediation services. When country reservations are listed, WT/REG353/1  
 
- 32 - 
 
  they mirror in general those under the GATS. Only in the case of Croatia, are some commitments 
made in life insurance and related insurance intermediation services . The EU makes no 
commitments in reinsurance, retrocession and services auxiliary  to services . In banking and other  
financial services , most EU Member S tates made commitments for mode  1 in advisory and other 
auxiliary servi ces (excluding intermediation ), and provision of financial information and financial 
data processing. Some countries - Croatia, Latvia, Malta and Romania – made commitments also 
in other sub -sectors, for instance lending, financial leasing, payment and mon ey transmission 
services and acceptance of deposits.  Some countries also indicate limitations, which reflect to a 
large extent those in the GATS.  The EU, except for Bulgaria and Poland, made no commitments in 
mode 2.   
4.40.   With respect to establishment , a numbe r of reservations, mainly country -specific, are listed. 
At the EU level, M ember  States apply an establishment requirement  to conduct certain banking 
and other financial activities.  
4.4.1.2.8   Health related and social  services  
4.41.   Mode 1 remains largely unbound, except f or Hungary. In mode 2, the EU made broader 
commitments by extending its GATS commitments to all EU countries , for which this mode is 
unbound under the GATS (e.g. Cyprus, Finland and Sweden).  In mode 3, it expand s the 
geographical coverage and  removes  the requirements for hospital  services (e.g. limitations on the 
number of beds) but maintains  a broad reservation which allows it to apply any non -conforming 
measure with respect to national  and MFN treatment for any health, social and education services 
(priva tely funded).  
4.42.   Publicly funded h ealth and social services are not covered by the Agreement and the GATS.  
4.4.1.2.9   Tourism and travel related services  
4.43.   The EU made full commitments in mode 2 for tourism and travel related  services , which 
under the GATS i s unbound or restricted for a few countries like Cyprus, Poland, and Lithuania 
depending on the activities. I n mode 1 , commitments reflect to a large extent those under the 
GATS , in particular  for hotels, restaurants, catering and tourist guides services, which remain 
largely unbound.  For travel agencies and tour operators, the EU expand s its geographical coverage 
and ma kes full commitments also for Cyprus, Czech Republic, Malta, Poland, Slovak Republic, 
Slovenia, and Sweden, which are unbound or restricted under the GA TS.  
4.44.   In mode 3, the EU made broader commitments by maintaining only two reservations one for 
Portugal and another for Croatia. For Portugal, travel agencies and tour operators are subject to an 
establishment requirement to provide services and for Croatia,  activities in protected touristic 
areas are subject to government approval.    
4.4.1.2.10   Recreational, cultural  and sporting services  
4.45.   The EU made broader commitments in news and p ress agencies services and sporting and 
other recreational services for modes 1 and 2  by expand ing its geographical coverage and making  
full commitments for all its M embe r States. In entertaining, libraries, archives museum and other 
cultural services, commitments under the Agreement mirror those under the GATS schedule. 
Modes 1 and 2 for t hese activities remain largely unbound . 
4.46.   With respect to establishment , the EU expands its geographical coverage and removes most 
of its GATS reservations while maintaining one reservation for the EU as a whole and three which 
are count ry-specific. Under the  EU reservation, the EU reserves the right to apply any non -
conforming measure with respect to national and MFN treatment with respect to gambling and 
betting services. The reservation further indicates that no market access is granted. For France, 
nationa l treatment for the establishment of press agencies is subject to reciprocity. Austria applies 
nationality requirements for management directors of ski schools and companies providing 
mountain guide services.  Croatia reserves the right to apply non -conform ing measures with 
respect to national and MFN treatment with respec t to public libraries, archives , museum s, and 
other cultural services.  WT/REG353/1  
 
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  4.4.1.2.11   Transport  services  
4.47.   Commitments in transport servic es under the A greement are limited and in some cases , like 
for insta nce, in maritime, rail and road transport services, they mirror those under the GATS . In 
these three subsectors,  passenger and freight transportation services remain largely unbound in 
particular for mode 1 . For mode 2, the EU expands its geographical cove rage and makes  full 
commitments for  all its M ember  States in passenger and freight transportation in rail and road 
transportation . Internal waterways transport (passenger and freight transportation) and p ipeline 
services remain also largely unbound or rest ricted under the Agreement and the GATS.   
4.48.   In services auxiliary to transport , the EU made  in general full commitments in mode s 1 and 
2, which  are unbound for a number of EU countries under the GATS , but exclude s some activities 
especially  in mode 1  such as  pushing and towing services .  
4.49.   With respect to establishment , the EU made a number of reservations , some of which are 
country -specific, affecting air, maritime, rail, road and internal waterways services. For instance, 
the EU does not take any national and  MFN obligations with respect to cabotage in the maritime, 
road and internal waterways services and with respect to the establishment of a company willing 
to operate a fleet in the EU. In internal waterways transpo rt services , it also reserves the right to  
apply restrictions on traffic rights and nationality requirements regarding ownership. The EU can 
apply non -conforming measures with respect to national and MFN  treatment in air transport 
services and require s inter alia  that aircrafts used by an EU air carrier  register in a n EU Member 
State. Some of these reservations reflect those under the GATS schedule.  
4.50.   No commitments were made in space transport services under the Agreement.  
4.4.2   Ukraine  
4.51.   The list of commitments for m odes 1 and 2 for Ukraine is almost the s ame as under its  
GATS schedule. For mode 3, Ukraine listed 15 reservations. Of these reservations three have a  
horizontal application.   
4.4.2.1   Horizontal commitments  
4.52.   Under the  Agreement, Ukraine reserves the acquisition of agricultural land  and forests  to its 
nationals  and can apply an authorization requirement to foreigners willing to acquire , purchase  or 
rent real estate. It also restricts the participation of foreign -State enterprises and agencies in the 
privati zation of Ukrainian enterprises . In particular, it  forbids  the participation of those in which 
foreign -State ownership exceeds 25% (Annex XVI -D). 
4.53.   None of these reservations is included in Ukraine GATS schedule, except for the one 
restricting the acquisition of agricultural land.    
4.4.2.2   Sector -specific commitme nts 
4.54.   Comp ared to its GATS schedule, Ukraine's  sector -specific commitments are the same , 
except for communications and transport services  in which  commitments are in general broader 
under the Agreement.  
4.55.   Table 4.3 compares Ukraine 's sectoral commitments unde r the Agreement and under its 
GATS schedule for modes 1 -3. 
Table 4.3 Ukraine 's sector -specific liberalization under the Agreement, excluding mode 4  
Sectors (CPC Classification)  GATS  Compared to the 
RTA 
Secto ral 
commitmentsa RTA s ectoral 
commitmentsb 
1. Business services  Partial  Same  
A. Professional  Services  partial same 
B. Computer  and Related  Services  full same WT/REG353/1  
 
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  Sectors (CPC Classification)  GATS  Compared to the 
RTA 
Secto ral 
commitmentsa RTA s ectoral 
commitmentsb 
C. Research  and Development  Services  full same  
D. Real  Estate  Services  full same  
E. Ren tal/Leasing  Services  without  Operators  partial same  
F. Other  Business  Services  partial same  
2. Communication services  Partial  Improved  
A. Postal  services  partial improved  
B. Courier  services  partial same  
C. Telecommunication  services  partial same  
D. Audiovisual  services  no commitments  same  
E. Other  no commitments  same  
3. Construction and related engineering services  Full Same  
A. General  construction  work for buildings  full same  
B. General  construction  work for civil engineering  full same  
C. Installation  and assembly  work  full same  
D. Building  completion  and finishing  work  full same  
E. Other  full same  
4. Distribution services  Partial  Same  
A. Commission  agents'  services  full same  
B. Wholesale  trade services  partial same  
C. Retai ling services  full same  
D. Franchising  full same  
E. Other  no commitments  same  
5. Education services  Partial  Same  
A. Primary education services  partial same  
B. Secondary education services  partial same  
C. Higher education services  partial same  
D. Adult education  full same  
E. Other education services  full same  
6. Environmental services  Partial  Same  
A. Sewage services  full same  
B. Refuse disposal services  full same  
C. Sanitation and similar services  full same  
D. Other  partial same  
7. Financial services  Partial  Same  
A. All insurance  and insurance -related  services  partial same   
B. Banking  and other financial  services  partial same   
C. Other  no commitments  same  
8. Health related and social services  Partial  Same  
A. Hospital services  partial same  
B. Other Human Health Services  partial same  
C. Social Services  full same  
D. Other  no commitments  same  
9. Tourism and travel related services  Partial  Same  
A. Hotels  and restaurants (incl. catering)  full same  
B. Travel  agencies  and tour operators  services  full same  
C. Tourist  guides  services  full same  
D. Other  no commitments  same  
10. Recreational and cultural and sporting services  Partial  Same  
A. Entertainment  services (including theatre , live bands and circus ) partial  same  
B. News agency services  partial  same  
C. Libraries, archives, museums and other cultural services  partial same  
D. Sporting and other recreational services  partial same  
E. Other  no commitments  same  
11. Transport services  Partial  Same  
A. Maritime Tra nsport Services  partial improved  
B. Internal Waterways Transport  partial improved  
C. Air  Transport  Services  partial improved  
D. Space  Transport  no commitments  same  
E. Rail  Transport  Services  partial same  
F. Road  Transport  Services  partial same  
G. Pipeline  Transport  full same  
H. Services  auxiliary  to all modes  of transport  partial improved  
I. Other  Transport  Services  no commitments  same  
12. Other services not included elsewhere  Partial  Same 
a Except as indicated in the GATS horizontal commi tments.  
b Except as indicated in the Agreement horizontal reservations.  WT/REG353/1  
 
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  4.4.2.2.1   Communication services  
4.56.   In postal and courier services , Ukraine expand ed coverage by allowing services relating to 
ordinary letters weighing less than 50 gram mes and postcards which are excluded from the GAT S 
but reserve s the right to  apply  non-conforming measures with respect to national treatment in 
mode 3 . This is the only reservation listed in mode 3 for communications services.  
4.57.   Ukraine accompanie s these commitments by  a number of re gulatory provisions to ensure 
the proper functioning of the sector (Articles 109 -114).  In particular, it recognize s the importance 
of making compatible its legislation to that of the  EU in this area (Article 114) and agrees to 
require after three years of the Agreement's entry into force a licence only for services which 
qualif y as universal service (Article 112). It also commits  to maintain or adopt measure s to 
prevent anti -competitive practices in postal and courier services  (Article 110)  and guarantee  the 
independence of the regulatory body in this area .  
4.4.2.2.2   Transport services  
4.58.   Compared to its GATS schedule, Ukraine made broader commitments in maritime transport 
services, internal waterways services and air transport services. Commitments were different in 
services a uxiliary to all modes of transport . 
4.59.   In maritime services, the A greement includes a number of regulatory provisions. In 
particular , Ukraine commits to adapt its legislation to that of the EU  with the view of achieving 
mutual access to the markets of  the Parties. Each Party also commits to grant national and MFN 
treatment to vessels flying the flag of the other Party or opera ted by a provider of the other P arty. 
They also commit to grant national and MFN treatment with respect to the establishment and  
operations of servic e providers of the other Party .   
4.60.   In internal waterways transport, Ukraine made some commitments in modes 1 and 3 for 
passenger transportation and freight transportation (excluding cabotage) , unbound under the 
GATS, but  reserves the ri ght to apply traffic rights and nationality criteria regarding ownership as 
negotiated in existing and future agreements . In addition, it reserves the right to apply any 
non-conforming measure with respect to national and MFN treatment regarding establishm ent.  
4.61.   In air transport services, Ukraine made full commitments in mode 1 for computer 
reservation system s, which are  unbound under the GATS, but made no commitments in mode 3 . 
For this mode, it  reserves the right to apply any non -conforming measure with re spect to national 
and MFN treatment for establishment for operators  and indicate s that commitments on market 
access are to be dealt with by the EU -Ukraine Common A viation Area Agreement (Article 137 and 
Annex XVI -D).   
4.62.   In road, rail and inland waterways tr ansport, the Parties indicate that the conditions of 
mutual access shall be dealt with by future sector -specific agreements (Article 136).  
4.63.   In services auxiliary to all modes of transport (except maritime transport), Ukraine seem s to 
have made commitments i n mode 1 for cargo handling and storage warehouse services, which are 
unbound in the GATS, except for air transport services.  WT/REG353/1  
 
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  4.5  Regulatory provisions  
4.5.1   Domestic regulation  
4.64.   Chapter 6 of Title IV contains a  section on domestic regulation  (Articles 103 -138). The  
section includes provisions describing licensing requirements and procedures (Article 104 -105), 
mutual recognition of qualifications and professional experience (Article 106) and transparency and 
disclosure of confidential information (Article 107). In ad dition, it contains sector -specific 
regulations on d omestic regulation for computer services, postal and courier serv ices, electronic 
communications, financial servi ces, international maritime transport, rail transport, road transport 
and inland waterways transport services.  
4.65.   These provisions apply only to sectors subject to  specific commitments while tak ing into 
account any listed reservation . 
4.5.2   Recognition  
4.66.   The Parties reserve the right to apply any qualification  and/or professional requirement to  
natural pe rsons willing to exercise a specific  activity  but shall encourage the ir professional bodies 
to provide recommendations to the Trade Committee on mutual recognition of the criteria applied  
for the authorisation, licensing, operation and certification of inv estors and service suppliers, in 
particular,  for the provision of  professional services. The Trade Committee will review the 
recommendation and if it is consistent with the  Agreement and there is a sufficient level of 
correspondence between the relevant re gulations of the Parties, the Parties shall negotiate an 
agreement on the mutual recognition of requirements, qualifications, licences and other 
regulations in accordance with Article VII of the GATS  (Article 106) . 
4.5.3   Subsidies  
4.67.   Chapter 6 on  establishment, tra de in services and electronic commerce do es not apply to 
subsidies. Ele ments related to subsidies are included in Chapter 10 on Competition  and State Aid, 
which are  addressed under section s 5.10 and 3.4.4, respectively.  
4.5.4   Safeguards  
4.68.   The Parties can  use safeg uards when transfers an d capital movements between them cause 
or threaten to cause p roblems in the operation of their exchange rate or monetary policy, including  
their balance of payments . In this case, the Party concerned could implement a safeguard on the 
bilateral movement of capital for a maximum period of six months (Article 146)  (see section 5.2) . 
The Parties can also apply safeguard measures i f serious economic, societal or environmental 
difficulties  arise or threaten to arise  in sectors subject to r egulatory approximation (Article 8 of 
Annex XVII to Chapter 6)  (see section 4.6.2) . 
4.6  Sector -specific provisions on trade in services  
4.6.1   Electronic commerce   
4.69.   The P arties agree to promote the development of e lectronic commerce between them and to 
not impose cust oms duties on electronic transmissions , which are  covered by the definition of 
cross-border supply of services  under the Agreement (Article 139) . 
4.70.    The Parties also agree to cooperate and maintain a dialogue on regulatory issues regarding 
electronic commerc e, including electronic signatures and consumer protection (Article 140).  
4.6.2   Other sector -specific provisions  
4.71.   The Agreement also i nclude s regulatory provisions on  computer services  (Article 108) , 
postal and courier services (Articles 109 -114), electronic comm unication services 
(Articles  115-124), financial services (Articles 125 -133), and transport services  (Articles 134 -138).  
In particular, Ukraine commits to gradually transpose the EU legislation into its domestic law for: 
international maritime transport  services , financi al services, postal and courier services, as well as WT/REG353/1  
 
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  telecommunication services  (Annex XVII and its appendixes XVII -2 to XVII -5). In the long term, if 
the EU determines, based on a comprehensive assessment, that the process of transposition and 
implementation carried out  by Ukraine has been completed , the Parties  may grant each other  
internal market treatment with respect to  the corresponding sector  (Annex XVII to Chapter 6).  
5  GENERAL PROVISIONS O F THE AGREEMENT  
5.1  Transparency  
5.1.  Chapter 12 of Tit le IV contains provisions on transparency. Under the Agreement, the Parties 
shall designate a contact point to facilitate communications between them and ensure that any 
measure of general application is promptly published. They shall establish mechanisms for 
responding to enquiries regarding these measures and endeavour to  publish any proposed 
measure  or amendments . They will also give each other the opportunity to send comments and 
provide, upon request, any information or answer to questions regarding an  actual or proposed 
measure (Articles 283 -284).  
5.2.  Moreover, the Parties shall ensure that all their administrative procedures regarding the 
application of a  measure are conducted in a consistent, impartial and reasonable manner (Article 
285). They  must esta blish or maintain courts, tribunal s or procedures to review and correct final 
administrative actions for matter s covered by the Agreement (Article 286) . They also commit to 
cooperate in promoting regulatory quality and performance, and good administrative behaviour 
(Article  287). 
5.2  Current payments and capital movements  
5.3.  Under the Agreement, all payments, transfers and movement s of capital between the Parties 
affecting the balance of payments are to be made freely and without any restriction  (Article s 144 
and 145). However, in cases where payments and capital movements cause, or threaten to cause, 
serious difficulties for the operation of exchange rate or monetary policy in any of the Parties, that 
Party can  adopt safeguard measures with regard to capital movem ents for a period not exceeding 
six months (Article 14 6). 
5.4.  To be granted internal market treatment with respect to financial services21 in the EU area, 
Ukraine must achieve a level of liberalization equivalent to that of the EU of the transactions on 
the cap ital and financial account of the balance of payments.  Such treatment requires  that: 1) the 
freedom of establish ment in the territory of a Party for companies of the other Party and the 
application of the national treatment  principle22; and 2)  the freedom of companies to provide 
services within the  territory of the other Party in respect of  persons of the Parties who are 
established in the ir territories  (Article 4 of Annex XVII to Title IV).   
5.5.  The Parties shall maintain consultations  on ways to facilitate the  movement of capital and 
take measures to promote the application of the EU rules o n the free movement of capital . In the 
fifth year followi ng the entry into force of the A greement, the Trade Committee will review the 
measures taken and determine the modal ities of further liberalization  (Article 14 7).  
5.3  Exceptions  
5.6.  The Agreement incorporates  Articles XX and XXI of GATT  on general and security exceptions 
and its interpretative notes (Article 36).  
5.7.  For trade in services,  Articles 141 and 143 of the Agreement mir ror to a large extent 
Articles  XIV and XIV bis on general and security exceptions of the GATS. Under the Agreement, 
the Parties can take any action to protect inter alia  public security, human, animal or plant life or 
health; and national treasures of arti stic, h istoric or archaeological value.  Moreover, t hey have no 
obligation to furnish any information  they consider contrary to their  security interests and can 
                                                
21 And other sectors concerned by regulatory approximation.  
22 This also applies to the setting up of agencies, branches or subsidiaries by EU or Ukraine companies 
established in t he territory of the other Party.  WT/REG353/1  
 
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  apply any measure necessary to  keep peace, maintain public order and protect thei r essential 
security interests (Articles 141, 143 and 472) .  
5.8.  Taxation measures applied by the Parties to avoid double taxation in accordance with their 
bilateral agreements are not subject to MFN treatment (Article 142).  
5.4  Accession and Withdrawal  
5.9.  Any Party can end the AA . The termination will take effect si x months after the notification 
(Article 481 ). 
5.10.   The AA  will enter into force  once all its internal requirements have been finalized . However, 
the P arties agree to apply it on a provisional basis when part of the corres ponding internal 
procedures has  been completed (Article 486) .  
5.11.   The AA  does not contain provisions on accessions.  
5.5  Institutional framework  
5.12.   The AA  foresees the creation of an Association Council . The Association Council is the main 
institutional body of the AA and is responsible, among others, for supervising and monitoring its 
implementation and deve lopments. The Association Council shall meet at ministerial level  at least 
once a year and when require d (Article 461).  As of January 2017, the Association Council  had held 
three meetings on: 15 December 2014, 7 December 2015 and 19 December 2016.23 
5.13.   The AA further establishes an Association Committee , Parliamentary Association Committee , 
and Civil Society Platform  (Articles  464-469). The Association Committee is to b e called Trade 
Committee when meeting on trade and trade related -issues (Article 465). The Trade Committee is 
the responsible body for monitoring  the implementation of Title IV . The AA also establishes sub -
committees in different areas, i ncluding  four trade-related S ub-Committe es under Title IV : the 
Sub-Committee  on Trade and Sustainable Development, the Sub-Committee  on Geographical 
Indications , the SPS Sub-Committee and the Customs Sub-Committee . As of January 2017, the 
Association Committee had met twice : on 13 -14 July 2015 and on 5 -6 July 2016. The Trade 
Committee had met once on 12-13 April 2016, and the first meeting of the four other trade -related 
Sub-Committees  is expected to  take place  in 2017 . In addition, the Parliamentary Association 
Committee  met four times : twice in 2015 and 2016, while t he Civil Society Platform met twice  in 
2016.24 
5.6  Dispute settlement  
5.14.   Chapter  14 of Title IV provides for a mechanism for the settlement of disputes  between the 
Parties. It applies to any dispute concerning the inter pretation and application of the prov isions of 
Title IV , except  for issue s covered by Sections 1 (Global safeguards measures), 4  (Anti-dumping 
and countervailing measures), 5 (Consultations), 6 (Institutional Provisions) and 7 (Dispute 
Settlement) of the C hapter on Trade Remedies (Article 52) and any other issue expressly 
specified.  The P arties also agree to consider in the future the inclusion of investment protection 
provisions and of an investor -to-state dispute settlement mechanism (Article 89).  
5.15.   For di sputes covered by both the Agreement and the WTO Agreement the complaining Party 
may select the forum fo r the settlement of the dispute . A Party is allowed to submit a claim to a 
second forum for claims that address the same measure but only once the first  proceeding has 
concluded  and provided that the obligation that is being breach ed is not identical under both 
agreements . For claims that address the same measure and are based on identical obligations 
under both agreements, once the forum has been selecte d and the proceedings initiated, it must 
be used to the exclusion of the other, unless the forum selected fails for proced ural or 
jurisdictional reasons (Article 324 ). 
                                                
23 Information pro vided by the Parties' authorities.  
24 Information provided by the Parties' authorities.  WT/REG353/1  
 
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  5.16.   In case of a dispute, t he Parties will endeavour to resolve it through consultations 
(Article 305). If consultations fail, the complaining Party can request the establishment of an 
arbitration panel (Article 306 ). The arbitration Panel will issue an interim report to the Parties 
within 90 days from the date the arbitration panel was establish ed, with its findings and 
recommendations on the iss ue under analysis (Article 308 ). The arbitration panel must notify its 
ruling to the Parties and to the Trade Committee within 120 days of the date of the panel's 
establishment (Article 310). If the Party  fails to comply with the panel's ruling, the  Party 
complained against shall , upon r equest of the complaining Party , present an offer for temporary 
compensation. If no agreement on compensation is reached, the complaining Party can suspend 
the benefits gra nted under Title IV . The suspension of benefits shall apply until the Party 
complained against has complied or until the dispute has been resolved (Article 315 ). Chapter 14 
provides also for some accelerated  DS procedures in the case of perishable goods an d energy 
related dispute s affecting the transport of natural gas, oil or electricity. Also in cases where a 
dispute raises a question of interpretation of a  provision related to EU law, the arbitration panel 
should not decide the question but request the E U Court of Justice of the European Union to rule 
on the question (Article 322). Chart  5.1 summarizes the procedure s for the settlement of a 
dispute.  
 WT/REG353/1  
 
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  Chart 5.1 Dispute settlement mechanism stablished by the Agreement  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Source:  Chapter 14 of Title IV of the AA . 
 
 
5.17.   Chapter 14  also provides for a mediation mechanism  which applies to any measure falling 
under the scope of Chapter 1 (National Treatment and Market Acc ess for goods) of Title IV 
(Article  327). This mechanism is described separately in Chapter  15 and is not intended to serve 
as a basis for dispute settlement procedures under this Agreement or any other agreement  but as 
an alternative . All discussions duri ng the mediation process, including any advice or proposed 
solution are confidential (Article 333).   Consultations  
 (Art. 305)  Max. 30 days  Consultations request  
 (Art. 305)  
The issue is resolved  Request for establishment of  
Arbitration Panel (Art. 306)  
Members of the Arbitration Panel  
are selected (Art. 307)  
Interim Panel report  
(Art. 308)  
Arbitration Panel notifies its ruling to the  
Parties and Trade Committee (Art. 310)   Max. 30 days  
Temporary compensation 
requested by  
complaining Party  Non-compliance  
(Article 315)  Compliance within 
reasonable period of time  Implementation of the report  
(Art. 311)  
If disagreement, the 
complaining Party can 
suspend the benefits of  the 
Agreement until the report 
is applied or an agreement 
is reached  (Art. 315)  
  Max.120 days  WT/REG353/1  
 
- 41 - 
 
  5.7  Relationship with other agreements concluded by the Parties  
5.18.   The current A A replaces t he Partnership and Cooperation Agreement  (including its 
Protocols)  of 1994 between the EU and Ukraine, which is repealed (Article 479 ).25 
5.19.   The AA further specifies that it shall not pre clude  the maintenance or establishment of other 
trade agreements, including customs unions , unless there is a conflict between their provisions . 
The Parties are to hold consultations concerning the establishment of other trade agreements and 
other issues relating to their respective trade policies with third countries, in particular regarding 
the accession of new M embers States to the European Un ion (Article 39) .  
5.20.   Table 5 .1 lists the notified and non -notified (if any) t rade agreements that have the EU or 
Ukraine  as members (excluding the current Agreement).  
Table 5.1 European Union and Ukraine: Partic ipation in other RTAs (notified and 
non-notified in force), as of 2 March 2017  
RTA Name  Date of 
entry into 
force  Coverage  GATT/WTO Notification  
Year WTO Provision  
European Union  
EU - Côte d'Ivoire  03-Sep-16 Goods  2008 GATT Art. XXIV  
EU - Georgia  01-Sep-14 Goods & 
Services  2014 GATT Art. XXIV & GATS Art. V  
EU - Republic of Moldova  01-Sep-14 Goods & 
Services  2014 GATT Art. XXIV & GATS Art. V  
EU - Cameroon  04-Aug-14 Goods  2009 GATT Art. XXIV  
EU - Central America  01-Aug-13a Goods & 
Services  2013 GATT Art. XXIV & GATS Art. V  
EU - Colombia and Peru  01-Mar-13 Goods & 
Services  2013 GATT Art. XXIV & GATS Art. V  
EU - Eastern and Southern 
Africa States Interim EPA  14-May-12 Goods  2012 GATT Art. XXIV  
EU - Republic of Korea  01-Jul-11 Goods & 
Services  2011 GATT Art. XXIV & GATS Art. V  
EU - Serbia  01-Feb-10 
01-Sep-13 Goods  
Services  2010 
2013 GATT Art. XXIV  
GATS Art. V  
EU - Papua New Guinea / Fiji  20-Dec-09 Goods  2011 GATT Art. XXIV  
EU - CARIFORUM States EPA  01-Nov-08 Goods & 
Services  2008 GATT Art. XXIV & GA TS Art. V  
EU - Bosnia and Herzegovina  01-Jul-08 
01-Jun-15 Goods  
Services  2008 
2016 GATT Art. XXIV  
GATS Art. V  
EU - Montenegro  01-Jan-08 
01-May-10 Goods  
Services  2008 
2010 GATT Art. XXIV  
GATS Art. V  
EU - Albania  01-Dec-06 
01-Apr-09 Goods  
Services  2007 
2009 GATT Art. XXIV  
GATS Art. V  
EU - Algeria  01-Sep-05 Goods  2006 GATT Art. XXIV  
EU - Egypt  01-Jun-04 Goods  2004 GATT Art. XXIV  
EU - Lebanon  01-Mar-03 Goods  2003 GATT Art. XXIV  
EU - Chile 01-Feb-03 
01-Mar-05 Goods  
Services  2004 
2005 GATT Art. XXIV  
GATS Art. V  
EU - Jordan  01-May-02 Goods  2002 GATT Art. XXIV  
EU - San Marino  01-Apr-02 Goods  2010 GATT Art. XXIV  
EU - Former Yugoslav Republic 
of Macedonia  01-Jun-01 
01-Apr-04 Goods  
Services  2001 
2009 GATT Art. XXIV  
GATS Art. V  
EU - Mexico  01-Jul-00 
01-Oct-00 Goods  
Services  2000 
2002 GATT Art. XXIV  
GATS Art. V  
EU - Israel  01-Jun-00 Goods  2000 GATT Art. XXIV  
EU - Morocco  01-Mar-00 Goods  2000 GATT Art. XXIV  
EU - South Africa  01-Jan-00 Goods  2000 GATT Art. XXIV  
EU - Tunisia  01-Mar-98 Goods  1999 GATT Art.  XXIV 
                                                
25 The Partnership and Cooperation Agreement  (including its Protocols)  between the EU and Ukraine was 
signed in Luxembourg on 14 June 1994 and entered into force on 1 Mar ch 1998 . WT/REG353/1  
 
- 42 - 
 
  RTA Name  Date of 
entry into 
force  Coverage  GATT/WTO Notification  
Year WTO Provision  
EU - Palestinian Authority  01-Jul-97 Goods  1997 GATT Art. XXIV  
EU - Faroe Islands  01-Jan-97 Goods  1997 GATT Art. XXIV  
EU - Turkey  01-Jan-96 Goods  1995 GATT Art. XXIV  
European Economic Area (EEA)  01-Jan-94 Services  1996 GATS Art. V  
EU - Andorra  01-Jul-91 Goods  1998 GATT Art. XXIV  
EU - Syria 01-Jul-77 Goods  1977 GATT Art. XXIV  
EU - Norway  01-Jul-73 Goods  1973 GATT Art. XXIV  
EU - Iceland  01-Apr-73 Goods  1972 GATT Art. XXIV  
EU - Switzerland - Liechtenstein  01-Jan-73 Goods  1972 GATT Art. XXIV  
EU – Overseas Countries and 
Territories (OCT)  01-Jan-71 Goods  1970 GATT Art. XXIV  
EU - Kosovob 01-Apr-16 Goods  Not notified  
Ukraine  
Ukraine - Montenegro  01-Jan-13 Goods & 
Services  2013 GATT Art. XXIV & GATS Art. V  
Treaty on a Free Trade Area 
between membe rs of the 
Commonwea lth of Independent 
States (CIS)c 20-Sep-12 Goods  2013 GATT Art. XXIV  
Ukraine – EFTA 01-Jun-12 Goods & 
Services  2012 GATT Art. XXIV & GATS Art. V  
Ukraine - Belarusc 11-Nov-06 Goods  2008 GATT Art. XXIV  
Ukraine - Moldovac 19-May-05 Goods  2008 GATT Art. XXIV  
Common Economic Zone (CEZ)d 20-May-04 Goods  2008 GATT Art. XXIV  
Ukraine - Tajikistanc 11-Jul-02 Goods  2008 GATT Art. XXIV  
Ukraine - Former Yugoslav 
Republic of Macedonia  05-Jul-01 Goods  2008 GATT Art. XXIV  
Ukraine - Kazakhstanc 19-Oct-98 Goods  2008 GATT Art. XXIV  
Ukraine - Kyrgyz Republicc 19-Jan-98 Goods  1999 GATT Art. XXIV  
Ukraine - Armeniac 18-Dec-96 Goods  2004 GATT Art. XXIV  
Ukraine - Azerbaijan  02-Sep-96 Goods  2008 GATT Art. XXIV  
Ukraine - Georgia  04-Jun-96 Goods  2001 GATT Art. XXIV  
Ukraine - Uzbekistan  01-Jan-96 Goods  2008 GATT Art. XXIV  
Ukraine -Turkmenistan  04-Nov-95 Goods  2008 GATT Art. XXIV  
GUAM (Georgia, Ukraine, 
Azerbaijan, Moldova)  10-Dec-03 Goods  Not notified  
a This agreement is being applied on a provisional ba sis according to the notification made by the 
Parties to the Secretariat in February 2013  (see WT/REG332/N/1 and S/C/N/680) . As of February 
2017, the Secretariat had not received any information regarding the definitive dates of its entry 
into force . 
b Under United Nations Security Council Resolution 1244/99.  
c Article 23.2 of the  Treaty on a Free Trade Area between Members of the Commonwealth of 
Independent  States indicates that: "The Parties have agreed that from the date of entry into force of 
this Treat y, they will  take measures for terminating bilateral international treaties existing between 
them in the manner and within  the terms stipulated by such treaties, unless the Parti es have not 
agreed otherwise". In this regard, Ukrainian authorities  indicated that all corresponding bilateral 
agreements are still in force .  
d Ukrainian authorities indicated that Ukraine  does not participate in the CEZ since 2006 . However, 
since the corresponding not ification t o the WTO Secretariat has not yet been submitted  to the WTO 
the WTO RTA database does not currently reflect this change.  
Source:  WTO Secretariat.  
5.8  Government procurement  
5.21.   Chapter 8 of Title IV contains the Parties' commitments and proce dures in government 
procurement. It applies to works, supplies and service s contracts in the public and utilities sectors, 
as well as to works and services concessions.  The P arties recognize the importance of  non-WT/REG353/1  
 
- 43 - 
 
  discrimination, transparency and competition for the good functioning of their procurement 
markets (Articles 148 and 149).  
5.22.    The Chapter provides for the mutual access to public procurement markets based on the 
principle of national treatment at national, regional and local level for contracts and concessions in 
the public and utilities sectors. It also provides for a gr adual approximation of the p ublic 
procurement legislation of  Ukraine with that of the EU  and the creation of an efficient public 
procurement system based on the principles governing public procurement in the EU (Article 148).  
The Chapter also includes prov isions on cooperation and information dissemination 
(Article  155-156).   
5.23.   Both Parties are parties to the WTO Government Procurement Agreement (GPA). The EU 
was one of the founding Parties of the GPA while Ukraine joined in May 2016. Chapter 8  applies to 
contracts above the thresholds agr eed by the P arties. These thresholds are the same for both 
Parties  and compared to the thresholds under GPA, they are  in general equivalent (Table s 5.2 and 
5.3).26  
Table 5.2 Procurement thresholds applied by the parties under the Agreement  
The EU and 
Ukraine  Procurement thresholds  (in Euros ) 
At the time  of signature  As of J anuary 2017 * 
  Central 
Entities  Sub-Central 
entities  Utilities 
sector   Central 
entities  Sub-
Central 
entities  Utilities 
sector  
Goods  133,000 206,000  412,000 135,000 209,000 418,000 
Services  133,000 206,000  412,000 135,000 209,000 418,000 
Works / 
Constructions  5,150,000 5,150,000  5,150,000 5,225,000 5,225,000 5,225,000 
* Commission Delegated Regulation s (EU) 2015/2172 , 2015/2170 and 2015/2171 .   
Source:  Information provided by the EU authorities, Chapter 8 of Title IV of the AA and its Annex XXI -P, and 
the Parties' GPA Schedules . 
Table 5.3 Procurement threshol ds applied by the Parties under the GPA  
The EU and Ukraine  Procurement thresholds (in Euros) as of January 2017  
  Central entities  Sub-Central entities  Other entities  
Goods  135,000 209,000 418,000 
Services  135,000 209,000 418,000 
Works / 
Constructions   5,225,000 5,225,000 5,225,000 
 
5.24.   The value of the thresholds is to be revised  every two years.  The Parties shall have an 
appropriate framework for the proper functioning of the public procurement system. In the case of 
Ukraine, it should establish a centr al executive body , which will be  responsible for public 
procurement policies (Article 150), and  will gradually make compatible its existing and future 
legislatio n on public procurement with that of the EU. T he process of approximation will take 
between 6  months to 8 years after the e ntry into force of the AA  depending on the legislation . In 
addition, Ukraine can adopt on a voluntary basis other elements of the EU 's legislation  (Article 153  
and Annex XXI to Title IV ).  
5.25.   The Parties shall  open gradually and si multaneously their respective markets , and allow for 
the participation of Ukrainian (EU) companies without applying any establishment requirement in 
the EU (Ukraine) . The extent of m arket access mutually granted by the P arties will depend on  the 
progress m ade in  the legislative approximation . Once this process of approximation  has been 
completed , the Parties will consider reducing  the procurement  thresholds (Article 154) . 
                                                
26 The EU authorities indicated that  the thresholds in the Agreement are based on those under the EU 
Directives, and consequently adapted every two years to maintain the same value in terms of purchasing 
power , and ensure that t hey remain in line w ith the GPA.  WT/REG353/1  
 
- 44 - 
 
  5.26.   The Agreement allows the contracting entities to invite a limited number of applicants  to 
submit an offer provided that the selection is based on objective factors such as work experience 
and business characteristics and that the process is conducted in a transparent and non -
discriminatory manner.  
5.9  Intellectual property rights  
5.27.   Issues related  to intellectual property rights (IPRs) are covered in Chapter 9 of Title IV  
(Articles 157-252). The chapter is very detailed, and goes beyond the TRIPS Agreement  and other  
international treaties on IPRs by complement ing and further clarifying  some of the Parties'  existing 
rights and obliga tions (Article 1 58). The Chapter includes provisions  on transfer of technology , 
exhaustion of IPRs, the protection of copyrights, trademarks, geographical indications , designs, 
patents, topographies of semiconductor produ cts, plant varieties  and traditional knowledge . The 
terms of protection for different types of IPR s are in general longer under the Agreement than 
under t he TRIPS Agreement (see Table 5.4).  
Table 5.4 Terms of  IPR protection under the Agreement, 2015  
 Duration of protection under the 
agreement  Duration of protection under the TRIPS 
Agreement  
Copyrights 
and related  
rights  Authors' rights of a literary or artistic work 
(including computer programs and 
databases )  
are protected for the life of the authors and 
in general for 70 years after his/her death 
irrespective of the date when the works was 
lawfully made available to the public 
(Articles 162 and 180).  
 
Cinematography or audio -visual works   
are protected for  at least 70 years after the 
death of the ir last surviving  authors (Article 
163).  
 
Photographic works  
are protected for the life of the authors and 
in general for 70 years after his/her death 
irrespective of the date when the works was 
lawfully made avai lable to the public (Article 
167) 
 
Broadcasting organizations' rights  
are protected for 50 years from the date of 
the first transmission (Article 164).  
 
 
Performers, producers of phonograms, and 
producers of the first fixation of a film   
are protected for at least 50  years after the 
date of the performance/fixation . However, 
if the film/ performance  has been l awfully 
published or communicated to the public 
during this period , the IP rights shall be 
protected for at least 50 years from the date 
of the first p ublication/communication 
(Article 164). For phonograms, IP rights 
shall be protected for at least 50 years from 
the date of the first publication and for 50 
years from the date of the first 
communication.  Authors' rights of a literary or artistic work 
(including computer programs and 
databases)  
are protected for be the life of the author 
and in general 50 years after his death 
(Articles 2, 9 and 12).  
 
 
 
Cinematography or audio -visual works   
are protected for be the life of the author 
and in general 50 yea rs after his death 
(Articles 2, 9 and 12).  
 
Photographic works  
are protected for be the life of the author 
and in general 50 years after his death 
(Articles 2, 9 and 12).  
 
 
 
Broadcasting organizations' rights  
are protected for 20 years from the end of 
the year in which the broadcast took place  
(Article  14.5)  
 
Performers, producers of phonograms, and 
producers of the first fixation of a film   
are protected for at least 50 years  from the  
end of the  year in which the 
fixation/performance took place  
(Article  14.5).  
 
Trade marks 
and well -
know n marks  
 At least 10 years following the date of filing 
of an application, extendable for consecutive 
periods of 10 years (Article 200).  At least 7 years, renewable indefinitely 
(Article 18).  
Designs  At least 5 years, ex tendable for two or more 
periods of 5 years totalling maximum a term 
of 25 years from the date of filing for 
registration (Article 214).  At least 10 years (Article 26).  WT/REG353/1  
 
- 45 - 
 
   Duration of protection under the 
agreement  Duration of protection under the TRIPS 
Agreement  
topographies 
of 
semiconductor 
products  At least 10 years from the date of the first 
commercial exploitation or if registration is 
required, from the earlier between the date 
of the first commercial exploitation or the 
date of fling for registration.  At least 10 years from the date of the first 
commercial exploitation (Article 38) . 
Patents  20 years  20 years (Article 33).  
Source:  WTO Se cretariat based on Chapter 9 of Title IV of the AA  and the TRIPS Agreement.  
 
5.28.   In enforcement, the Parties include provisions on civil measures, procedures and remedies, 
liability of intermediary service provide rs, border measures and cooperation (Articles 230 -252).  
5.9.1   Copyrights  
5.29.   The Agreement extends in general the term of protection of copyright s and related rights  
(see Table 5. 4) but also includes a number of novelties in this area. For instance, it defines the 
term of protection for previously  unpub lished works  (25 years)  (article 165)  and for scientific 
publications which have come into the public domain (30 years ) (Article 166) . It also has 
provisions on  cooperation on collective management of rights  (Article 168), fixation rights  
(Article  169), distribution rights (Article 171), reproduction rights (Article 173), right of 
communication to the public of works (Article 174), right of making available of works to the public 
(Article 174), protection of technologi cal measure (Article 176), protection of rights managem ent 
information (Article 177) and  resale right s (Article 190) . 
5.9.2   Trademarks and well -known marks  
5.30.   The Parties commit to protect t rademarks and well -known marks and, to establish a system  
of registration o f trade marks in which any refusal b y the relevant administration must be  duly 
explained (Article 193 ). The period of protection for trademarks and well -known marks  is longer 
under the Agreement  (at least 10 years)  than in the TRIPS Agreement  (at least 7 ye ars). The 
initial registration of a trademark, and  its renewals, is  also longer. It is granted for at least 
10 years (Article 200), instead of seven years under the TRIPS Agreement (Article 18)  (see 
Table  5.4). In both agreements, the registration of a tra demark can be renewed indefinitely.  
However, registration  can be revoked if the trade mark has not been used for five years 
(Article 198), which is less stringent than in the TRIPS Agreement (A rticle 19)  which  provides for a 
period of three years .  
5.9.3   Geograph ical indications  
5.31.   The Parties commit to protect the geographical indications  (GI) listed by each P arty in the 
Agreement (Article 202 and Annex es XXII-C and XXII -D to Chapter 6) . The EU listed a numb er of 
agricultural products, foodstuff, wines , aromatised  wines and spirits. Ukraine listed wines , 
aromatised wines,  and spirits. The P arties further reserve the right to add new GIs for protection  
after being subject to the respective approval procedure  (Article 203) . The use of  a GI is not 
subject to any user re gistration or further charges (Article 205).   
5.32.   The P arties can invalidate a trade mark or refuse its registrat ion if it would affect the 
protection of a GI listed in the A greement (Article 206).   
5.33.   The P arties also agree on a transition period of 7 and 10 year s during which certain GIs  of 
the EU can be used to designate comparable products originating in Ukraine . Parmigiano r eggiano, 
roquefort and feta  are subject to a  transition period of 7 years from the entry into for ce of the A A 
while champagne, cognac, mad eira, porto, jerez, cal vados, grappa, anis P ortugues, a rmagnac,  
marsala, Malaga  and tokaj are subject to a transition period of 10 years (Article 208).   
5.34.   The A greement provides for the creation of a GI Sub -Committee, which will be responsible  
inter alia  for monitoring the functioning of the GI provisions and promoting cooperation in this 
area. It will report its activities to the Association Committee  (Article 211) . The Parties indicated 
that the first meeting of the GIs Sub -Committee is scheduled for March 2017.  WT/REG353/1  
 
- 46 - 
 
  5.9.4   Designs  
5.35.   The duration of protection for designs is lo nger under the Agreement than under  the TRIPS 
Agreement  (see Table 5. 4). The Agreement also defines a term of protection f or unregistered 
designs, which must be at least three years from the date on  which the design was made available 
to the public in the territory of one of the Parties  (Article 214) . In accordance with the TRIPS 
Agreement, t he Parties further agree that the owner of a protected design must have at least the 
exclusive right to use it  and prevent th ird parties from n ot having his/her consent to use it 
(Article  216).  
5.9.5   Patents  
5.36.   The Agreement does not exten d the period of protection provided by the TRIPS Agreement 
(20 years) but contains inter alia  provisions on the protection of biotechno logical inventions 
(Article 221), the protection of data submitted to obtain an authorization for the commercialisation  
of a medical product  (Article 222), and the protection of tests or studies submitted to obtain 
marketing authorization for a plant prote ction product  (Articl e 223). 
5.9.6   Plant varieties  
5.37.   Under the Agreement, the Parties shall cooperate to promote and reinforce the protection of 
plant varieties rights in accordance with the UPOV27 Convention (Article 228 ). The TRIPS 
Agreement does refer to the UP OV Convention but only indicates the regulatory instruments that 
must be used to protect plant varieties (Article 27(b) of the TRIPS Agreement).  
5.9.7   Genetic resources, traditional knowledge and folklore   
5.38.   The P arties also recognize the imp ortance of taking app ropriate measures to preserve  
traditional knowledge and agree to continue working towards the development of international ly 
agreed model s for its legal protection (Article 229) . 
5.10  Other  provisions  
5.10.1   Competition policy, Monopolies and S tate Companies  
5.39.   The Agree ment does not prevent the Parties from establish ing or maintain ing a State 
monopoly under the Agreement but they must adjust S tate monopolies of a commercial character 
within five years followin g the entry into force of the A greement to guarantee that non-
discriminatory treatment is provided to goods procured and marketed by suppliers of the other 
Party (Article 258).  Services are not cover ed. 
5.10.2   Environment and labour related provisions  
5.40.   The Agreement includes a chapter  on Trade and Sustainable Development  (Chapter 13), 
under which the y reaffirm that trade should promote sustainable development (Article 293)  and 
recognize the importance of  core labour standards  and the value of international environmental 
governance . They reaffirm  their commitment to implement labour and environmental agreements 
to which they are party to at the multilateral level, including the ILO 1998 Declaration on 
Fundamental Rights and Principles at Work .; and shall also consider ratification and 
implementation of other ILO Conventions  (Article 291 and 292) . Moreover, the Parties agree to not 
weaken or reduce the environmental or labour protection afforded by their laws to encourage tra de 
or investment (Article 296) . 
5.41.   The Parties also include provisions on forest and fish products promot ing the sustainable 
management of forest resources and fish stocks  (Article 294 and 295) . They commit to reviewing, 
monitoring and assessing the impact of the implementation of  Title IV of the AA  on sustainable 
development  (Article 298) . To this end, t hey must also designate a new or existing Advisory Group 
                                                
27 "The International Union for the Protection of New Varieties of Plants"/ "Union I nterna tionale pour la 
protection des Obtentions V égétales" (UPOV) , as revised in Geneva on 10 November 1972, 23 October 1978 
and 19 March 1991.  WT/REG353/1  
 
- 47 - 
 
  on sustainable development to advise  on the implementation of Chapter 13. The Advisory Group 
members will include representative s of the civil society  organizations , non -governmental 
organizations and other relevant stakeholders  (Article 299) . The Parties also establish the Trade 
and Sustainable Development  Sub- Committee which will oversee the implementation of this 
Chapter (Article 300).  WT/REG353/1  
 
- 48 - 
 
  ANNEX 1  
Table A1.1 Tariff -Rate Quotas applied by the EU on imports fr om Ukraine under the 
Agreement  at the time of signature*  
Product Description and HS Code  Out of Quota 
rate* * 
(MFN 2014)  Quantit y 
(metric 
tonnes/year)  Annual 
increases  and 
final quantities  
(metric 
tonnes/year)  
Beef meat     
02012030a, 02022030, 02011000a, 02012020, 
02021000, 02022010a, 02012050, 02022050a, 
02023010a, 02023050a, 02012090, 02022090a, 
02013000, 02023090a. Different non-
ad-valorem duties  
apply  12,000  no 
Pork meat     
02031211a, 02031913a, 02031915a, 02031955a, 
02032211a, 02032911a, 02032913a, 02032955a,  
02031110a, 02031219a, 02031911a, 02031915a, 
02031959a, 02032110a, 02032219a, 02032911a, 
02092915a, 02032959a.  Specific duties 
ranging between 
46.7 €/100 kg and 
86.9 € /100 kg  20,000  No 
02031110a, 02031219a, 02031911a, 02031915a, 
02031959a, 02032110a, 02032219a, 02032911a, 
02092915a, 02032959a. Specific duties 
ranging between 
46.7 €/100 kg and 
86.9 € /100 kg  (additional)  
20,000 
tons/year  no 
Sheep  meat    
02042250a, 02042290a, 02042300a, 
02044230a, 02044250a, 02044290a, 
02044310a, 02044390a. Different non-ad-
valorem duties  
apply  1,500  Yes.  
Final quantities: 
2,250  after 5 
years  
Poultry meat and poultry meat preparations     
02071130, 02071190, 02 071210, 02071290, 
02071310, 02071320, 02071330, 02071350, 
02071360, 02071399, 02071410a, 02071420,  
02071430, 02071450a, 02071460, 02071499, 
02072410, 02072490, 02072510, 02072590, 
02072610, 02072620, 02072630, 02072650,  
02072660, 02072670, 02072680, 020726 99, 
02072710a, 02072720a, 02072730, 2072750, 
02072760, 02072770, 02072780a, 02072799,  
02074130, 02074180, 02074230, 02074280, 
02074410, 02074421, 02074431, 02074441, 
02074451, 02074461, 02074471, 02074481,  
02074499, 02074510, 02074521, 02074531, 
02074541, 02074551, 02074561, 02074581, 
02074599, 02075110, 02075190, 02075290,  
02075410, 02075421, 02075431, 02075441, 
02075451, 02075461, 02075471, 02075481, 
02075499, 02075510, 02075521, 02075531,  
02075541, 02075551, 02075561, 02075581, 
02075599, 02076005, 020760 10, 02076021, 
02076031, 02076041, 02076051, 02076061,  
02076081, 02076099, 02109939 a, 16023111a, 
16023119 a, 16023180 a, 16023211 a, 1602321 9a, 
16023230 a, 16023290 a, 16023921.   Specific duties 
ranging between 
18.7 € /100 kg and 
2,765 € /1,000 kg  16,000  Yes.  
Final quantities: 
20,000 and an 
additional 
20,000  for HS 
codes 02071210 
and 02071290 
after 5 years.  
Milk, cream, condensed milk and yogurts     WT/REG353/1  
 
- 49 - 
 
  Product Description and HS Code  Out of Quota 
rate* * 
(MFN 2014)  Quantit y 
(metric 
tonnes/year)  Annual 
increases  and 
final quantities  
(metric 
tonnes/year)  
04011010, 04011090, 04012011,  04012019, 
04012091, 04012099, 04014010, 04014090, 
04015011, 04015019, 04015031 , 04015039, 
04015091, 04015099, 04029110,  04029130, 
04029151, 04029159, 04029191, 04029199, 
04029910, 04029931, 04029939, 04029991, 
04029999, 04031011, 04031013,  04031019, 
04031031, 04031033, 04031039, 04039051, 
04039053, 04039059, 04039061, 04039063, 
04039069.   Different non-ad-
valorem duties  
apply  8,000  Yes.  
Final quantities: 
10,000  after 5 
years  
Milk powder     
04021011, 04021019, 04021091, 04021099, 
04022111, 04022118,  04022191, 04022199, 
04022911, 04022915,  04022919, 04022991, 
04022999, 04039011, 040 39013, 04039019, 
04039031, 04039033,  04039039, 04049021, 
04049023, 04049029, 04049081, 04049083, 
04049089.   Different non-ad-
valorem duties  
apply  1,500  Yes.  
Final quantities: 
5,000  after 5 
years  
Butter and dairy spreads     
04051011, 04051019, 04051030, 04051050, 
04051090, 04052090, 04059010, 04059090 . Specific duties 
ranging between 
30.4 € /100 kg and  
231.3 € /100 kg  1,500  Yes.  
Final quantities: 
3,000  after 5 
years  
Eggs and albumins     
04072100a, 04072910a, 04079010a, 04081180a, 
04081981a, 04081989a, 04089180a, 04089980a, 
35021190a, 35021990a, 35022091, 35022099 . Specific duties 
ranging between 
16.7 € /100 kg and  
142.3 € /100 kg  1,500 tons/year 
in terms of 
shell-eggs Yes. Final 
quantities: 3,000 
and an additional 
3,000 for the HS 
code 0470030  
After 5 years  
Honey     
04090000  17.3%  5,000  Yes. 
Final quantities: 
6,000 after 5 
years  
Garlic     
07032000  9.6 % + 120 € /100 
kg 500 No 
Sugars     
17011210, 17011290a, 17019100a, 17019910a, 
17019990a, 17022010 , 17029030, 17029050, 
17029071, 17029075, 17029079, 17029 080, 
17029095.  Different non-ad-
valorem duties  
apply  20,700  No 
Other sugars     
17023010, 17023050, 17023090, 17024010, 
17024090, 17026010 , 17026080, 17026095 . Different non-ad-
valorem duties  
apply  10,000  Yes. Final 
quantities: 
20,000 after 5 
years  
Sugar syrups     
21069030, 21069055, 21069059 . Different non-ad-
valorem duties  
apply  2,000  No 
Common wheat, flours, and pellets     
10019190,  10019900, 11010015,  11010090  
11029090,  11031190, 11032060 . Specific duties 
ranging between 95 
€/1,000 kg and  186 
€/1,000 kg  950,000  Yes.  
Final quantities: 
1,000,000 after 
5 years  
Barley, flour and pellets     WT/REG353/1  
 
- 50 - 
 
  Product Description and HS Code  Out of Quota 
rate* * 
(MFN 2014)  Quantit y 
(metric 
tonnes/year)  Annual 
increases  and 
final quantities  
(metric 
tonnes/year)  
10039000a, 11029010 . Specific duties 
ranging between 93 
€/1,000 kg and  171 
€/1,000 kg  250,000  Yes. 
Final quantities:  
350,000 after 5 
years 
Oats    
10041000, 10049000 . 89 €/1,000 kg  4,000  no 
Maize, flour and pellets     
10059000,  11022010, 11022090,  11031310  
11031390,  11032040,  11042340,  11042398 . Specific duties 
ranging between 0 
and 173 € /1,000 kg  400,000  Yes.  
Final quantities:  
650,000 after 5 
years  
Barley, groats and meal; cereal grains otherwise 
worked     
11031990,  11032025, 11032090,  11041910  
11041950,  11041961,  11041969,  11042904  
11042905,  11042908,  11042917,  11042930  
11042951,  11042959,  11042981,  11042989  
11043010,  11043090 . Specific duties 
ranging between 76 
€/1,000 kg and  236 
€/1,000 kg  6,300  Yes. 
Final quantities:  
7,800 after 5 
years  
Malt and wheat gluten     
11071011,  11071019, 11071091,  11071099  
11072000,  11090000 . Specific duties 
ranging between 
131 € /1,000 kg and 
512 € /1,000 kg  7,000  no 
Starches     
11081100, 11081200, 11081300 . Specific duties 
ranging between 
166 € /1,000 kg and 
224 € /1,000 kg  10,000  no 
Starch processed     
35051010,35051090, 35052030,35052050,  
35052090.  Different non-ad-
valorem duties  
apply  1,000  Yes.  
Final quantities:  
2,000 after 5 
years  
Bran, shaps and residues     
23021010,  23021090 , 23023010,  23023090  
23024010,  23024090 , 23031011 . Specific duties 
ranging between 44 
€/1,000 kg and 320 
€/1,000 kg  16,000  Yes. Final 
quantities:  
21,000 after 5 
years  
Mushrooms     
20031020a, 20031030a, 07115100a. Different non-ad-
valorem duties  
apply  500  
 No 
07115100a Different non-ad-
valorem duties  
apply  500 
(additional)  
 No 
Processed tomatoes     
20021010,  20021090 , 20029011,20029019 , 
20029031,  20029039 , 20029091,  20029099 . 14.4%  10,000  No 
Grape and apple juice     
20096190a, 20096911a, 20096971,  20096979,  
20096990a, 20097120,  20097199, 20097911a, 
20097919a, 20097930,  20097991, 20096190 . Different ad 
valorem  and non-
ad-valorem  duties  
apply  10,000  Yes. Final 
quantities:  
20,000 after 5 
years 
Fermented -milk processed products     
20096911, 20096971,  20096979, 20096990,  
20097120, 20097199,  20097911, 20097919,  
20097930, 20097991,  20097998, 04039099 . Different c ompound 
duties apply  2,000  No 
Processed butter products     WT/REG353/1  
 
- 51 - 
 
  Product Description and HS Code  Out of Quota 
rate* * 
(MFN 2014)  Quantit y 
(metric 
tonnes/year)  Annual 
increases  and 
final quantities  
(metric 
tonnes/year)  
 04052010, 04052030 . 9 % + EA  250 No 
Sweetcorn     
07104000a, 07119030,  20019030, 20049010,  
20058000a. 5.1 % + 9.4 €/100 
kg/net weight 
drained  1,500  No 
Sugar processed products     
17025000a, 17029010,  18061030a, 18061090a, 
21011298, 21012098,  33021029 . 
 Different ad 
valorem  and non-
ad-valorem  duties  
apply  2,000  Yes. 
Final quantities:  
3,000 after 5 
years  
Cereal processed products     
19030000, 19043000a. 6.4 % + 15.1 
€/100 kg and 8.3 
% + 25.7 € /100 kg  2,000  no 
Milk-cream processed products     
18062070a, 21061080, 22029099 . Different non-ad-
valorem duties  
apply  300  Yes. 
Final quantities:  
500 after 5 y ears 
Food preparations     
21069098a. 9 % + EA  2,000  no 
Ethanol     
22071000,  22072000,  22089091, 22089099.  
 Different non-ad-
valorem  duties  
apply  27,000  Yes. 
Final quantities:  
100,000 after 
5 years  
Cigars and cigarettes     
24021000, 24022090  26% and  57.6%  2,500  no 
Mannitol -sorbitol     
29054300,  29054411 , 29054419,  29054491  
29054499,  38246011 , 38246019, 38246091  
38246099.  Different non-ad-
valorem  duties  
apply  100  no 
Malt-starch processed products     
38091010,  38091030 , 38091050,  38091090 . Differ ent non-ad-
valorem duties  
apply  2,000  no 
*  The Parties indicated that certain CN codes have changed since the AA  was signed . 
** The in -quota rate for all the products subject to TRQs is zero.  
a Line subject to a TRQ at the MFN level.  
EA Agricultural com ponent . 
Source:  Append ix to Annex I -A to Title IV of the AA , EU authorities and WTO -IDB. WT/REG353/1  
 
- 52 - 
 
  ANNEX 2  
Table A2.1: Tariff -Rate Quotas applied by Ukraine on imports from the EU under the 
Agreement  at the time of signature * 
HS Code  Out of 
Quota  
rate* * 
(MFN 
2016 ) Quantity  
(metric 
tonnes per 
year)  Annual increases  and final 
quantities  
Pork meat     
02032190, 02032211 , 02032290 , 02032913 , 
02032955 , 02032990, 02032110 , 02032219 , 
02032911 , 02032915 , 02032959.  10% 
10,000  No 02031190,  02031211 , 02031290 , 02031913 , 
02031955, 02031990, 02031110 , 02031219 , 
02031911 , 02031915 , 02031959.  12% 
02032110 , 02032219 , 02032911 , 02032915 , 
02032959.  10% 10,000  
(additional)   No 
 02031110 , 02031219 , 02031911 , 02031915 , 
02031959.  12% 
Poultry meat and poultry meat preparations     
02072710 , 02072720, 02072730, 02072740 , 
02072750, 02072760, 02072770, 02072780 , 
02072791, 02072799.  5% 
8,000   Yes. Final quantities: 10,000 
after 5 years  02071410, 02071420 , 02071430, 02071440 , 
02071450, 02071460, 02071470, 02071491, 
02071499.  10% 
02072610 , 02072620, 02072630, 02072640 , 
02072650, 02072660, 02072670 , 02072680, 
02072699, 02074431 , 02074441, 02074461, 
02074481 , 02074499, 02074531, 02074541 , 
02074561, 02074571, 02074581 , 02074595, 
02074599, 02075431 , 02075441, 02075461, 
02075481 , 02075499,  02075531, 02075541 , 
02075561, 02075571, 02075581 , 0207 5595, 
02075599, 02076031 , 02076041, 02076061, 
02076081, 02076091, 02076099.  15% 
02071210, 02071290.  12% 
02071210, 02071290.  12% 10,000  
(additional)  No 
Sugars     
17011210 , 17011290, 17011310, 17 011390 , 
17011410, 17011490, 17019100, 17019910, 
17019990.  50% 30,000  Yes. Final quantities: 40,000 
after 5 years  
*  The Parties indicated that certain CN codes have changed since the AA  was signed . 
** The in -quota rate for all the products subject to TRQ s is zero.  
Source:  Appendix to Annex I -A to Title IV of the AA  and Ukraine authorities.  WT/REG353/1  
 
- 53 - 
 
  ANNEX 3  
1. Tables  A3.1-A3.2 present the Parties' tariff elimination schedule by total, agricultural and 
non-agricultural products. In the case of the EU , the overall share of duty -free tariff lines rose 
from 25.1% in 2014 to 89.1 % upon the Agreement's entry into force and the average applied tariff 
faced by Ukrainian exporters fell from 5.1% to 0.7% (Table A3.1), giving them a relative margin of 
preference of 86.3%. For ag ricultural products the share of duty -free tariff lines increased from 
19.2% to 80.7% and the average tariff rate fell to 0.7% compared to 9.1%. F or non -agricultural 
goods, the share of duty -free tariff lines went from 26.8% to  91.5% and the average tariff  fell to 
0.6% from 4.4% upon the Agreement's entry into force. In both cases, Ukrainian exporters 
benefited from a relative margin of preference of more than 80%  (92% and 86.4% respectively).  
At the end of the implementation period  the share of duty free l ines is expected to increase to 
95.8% overall, 80.8% for agricultural products and to almost 100% for non -agricultural products.  
Table A3 .1 EU: Indicators of MFN tariff rates and preferential rates for imports from 
Ukraine.  
Origin 
of 
goods  Year ALL PRODUC TS Agricultural productsa Non-agricultural products  
Average applied 
tariff  Share 
of 
duty-
free 
tariff 
lines 
(%) Average applied 
tariff  Share 
of 
duty-
free 
tariff 
lines 
(%) Average applied 
tariff  Share 
of 
duty-
free 
tariff 
lines 
(%) Overall 
(%) On 
dutiab le 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) 
MFN 2014 5.1 7.0 25.1 9.1 12.7 19.2 4.4 5.9 26.8 
Ukraine  
 2014 0.7 8.3 89.1 0.7 12.9 80.7 0.6 7.6 91.5 
2015 0.7 8.3 89.1 0.7 12.9 80.7 0.6 7.6 91.5 
2016 0.7 8.3 89.1 0.7 12.9 80.7 0.6 7.6 91.5 
2017 0.5 6.7 89.1 0.7 12.9 80.7 0.5 5.8 91.5 
2018 0.4 5.2 89.1 0.7 12.9 80.7 0.3 3.9 91.5 
2019 0.3 6.6 92.6 0.7 13.0 80.8 0.2 4.5 96.0 
2020 0.2 5.5 92.6 0.7 13.0 80.8 0.1 3.0 96.0 
2021 0.2 6.8 94.1 0.7 13.0 80.8 0.1 3.0 97.9 
2022 0.2 5.9 94.1 0.7 13.0 80.8 0.0 1.5 97.9 
2023 0.1 13.0 95.8 0.7 13.0 80.8 0.0 9.0 99.99  
a WTO Definition.  
Note:  For the calculation of averages, specific rates are excluded and the ad valorem  parts of alternate 
rates are included. For lines subject to a tari ff-rate quota, only the out -of-quota rate is in cluded in 
the computation . 
Based on the HS 2012 nomenclature.  
Source:  WTO estimates based on data from EU and WTO -IDB. 
 
2. For Ukraine , the overall share of duty -free tariff lines rose from 37.9% to 71.8% upon t he 
Agreement's entry into force, and the average applied tariff fell from 4.8% to 2.3% (Table A3.2), 
giving European exporters  a relative margin of preference of 52%. For agricultural goods, the 
average tariff rate fell to 6.8% from 9.4%; and to 1.2% from 3.6%  for non-agricultural pr oducts , 
resulting in a  relative margin of preference for EU exporters to Ukraine of 28% and 66.7% , 
respectively. As for the share of duty -free lines, it went from 14.9% to 34.9% for agricultural 
products and from 44% to 81.6% fo r non -agricultural products. At the end of the implementation 
period this share is expected to increase to 86.9%  for agricultural products, 99% for 
non-agricultural products, and to 96.5% overall.  WT/REG353/1  
 
- 54 - 
 
  Table A3 .2 Ukraine: Indicators of MFN tariff rates and pref erential rates for imports from 
EU 
Origin 
of 
goods  Year ALL PRODUCTS  Agricultural productsa Non-agricultural products  
Average applied 
tariff  
Share of duty -
free tariff lines 
(%) Average applied 
tariff  
Share of duty -
free tariff lines 
(%) Average applied 
tariff 
Share of duty -
free tariff lines 
(%) 
Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) Overall 
(%) On 
dutiable 
(%) 
MFN 2016 4.8 7.8 37.9 9.4 11.2 14.9 3.6 6.5 44.0 
EU 2016 2.3 8.4 71.8 6.8 10.8 34.9 1.2 6.4 81.6 
2017 1.8 6.6 72.0 5.6 8.9 35.8 0.8 4.6 81.6 
2018 1.3 4.7 72.1 4.3 6.9 36.0 0.5 2.8 81.6 
2019 0.8 6.6 87.4 3.1 7.7 57.4 0.2 4.0 95.4 
2020 0.6 5.2 87.4 2.5 6.1 57.4 0.1 3.0 95.4 
2021 0.4 6.1 92.9 1.8 7.2 75.4 0.1 3.5 97.5 
2022 0.4 5.4 92.9 1.6 6.4 75.4 0.1 2.9 97.5 
2023 0.3 9.0 96.3 1.4 10.5 86.9 0.1 4.5 98.8 
2024 0.3 8.9 96.3 1.4 10.5 86.9 0.1 4.2 98.8 
2025 0.3 8.8 96.3 1.4 10.5 86.9 0.0 4.0 98.8 
2026 0.3 9.2 96.5 1.4 10.5 86.9 0.0 4.7 99.0 
a WTO Definition.  
Note:  For the calculation of averages, specific rates are excluded and the ad valorem  parts of alternate 
rates are included. For lines subject to a tariff -rate quota, only the out -of-quota rate is in cluded in 
the computation . 
 Based on the HS 2012 nomenclature.  
Source:  WTO estimates based on data from Ukraine. 
3. Table A3 .3 shows market access opportunities for Ukraine 's top 25 goods  in the European 
market . These products accounted for 47.5 % of its world exports during 2011 -2013 and covered 
81 tariff lines at the 6 -digit level. Of these lines, 52 were already d uty free on a MFN basis when 
the Agre ement entered into force on a provisional basis in 2014. Of the remaining lines, 25  were 
liberalized immediately. Another two will be liberalized in 2023 and two will remain dutiable . These 
two lines refer to wheat and meslin  and had an average MFN rate of respectively 12.8% and 
95 Euros per 1,000 k g in 2014 .  
Table A3 .3 EU: Market access opportunities under the A greement for Ukraine's top 25 
exports to the world  
Ukraine's top export products in 2011 -2013  Access Conditio ns to EU's import markets  
HS number and description of the product  Share in 
global 
exports 
(%) MFN 2014  No. of duty 
free lines 
under the 
Agreement  
Remain Dutiable  Average 
MFN applied 
rate (%)  
duty-free  
dutiable  
2014  
2023  
100590  Maize (excl. seed for  sowing)  4.9 0.0 1     
151211  Crude sunflower -seed or safflower 
oil 4.8 5.3  3 3   
720712  -- other, of rectangular (other than 
square) cross -section  3.6 0.0 2     
260111  -- non-agglomerated  3.1 0.0 1     WT/REG353/1  
 
- 55 - 
 
  Ukraine's top export products in 2011 -2013  Access Conditio ns to EU's import markets  
HS number and description of the product  Share in 
global 
exports 
(%) MFN 2014  No. of duty 
free lines 
under the 
Agreement  
Remain Dutiable  Average 
MFN applied 
rate (%)  
duty-free  
dutiable  
2014  
2023  
720711  -- of rectangular (including square) 
cross-section, the width measuring 
less than twice the thickness  2.5 0.0 4     
720720  - containing by weight 0.25 % or 
more of carbon  2.4 0.0 9     
260112  -- agglomerated  2.2 0.0 1     
721420  - containing indentations, ribs, 
grooves or other deformations 
produced during the rolling process 
or twisted after rolling  2.2 0.0 1     
271019  Medium oils and preparations, of 
petroleum or bituminous minerals, 
not containing biodiesel, n.e.s.  1.8 2.0 12 13 13   
310210  - urea, whether or not in aqueous 
solution  1.8 6.5  2  2  
720851  -- of a thickness exceeding 10 mm  1.6 0.0 3     
860692  -- open, with non -removable sides 
of a height exceeding 60 cm  1.5 1.7  1 1   
721391  -- of circular cross -section 
measuring less than 14 mm in 
diameter  1.4 0.0 6     
854430  - ignition wiring sets and other 
wiring sets of a kind used in 
vehicles, aircraft or ships  1.3 3.7  1 1   
100191  -- seed 1.3 12.8  3 2  1 
100199  Wheat and meslin (excl. seed for 
sowing, and durum wheat)  1.3 95 
EUR/1 ,000 
kg  1   1 
120510  - low erucic acid rape o r colza 
seeds  1.3 0.0 2     
720839  -- of a thickness of less than 3 mm  1.3 0.0 1     
860610  -tank wagons and the like  1.2 1.7  1 1   
720110  - non-alloy pig iron containing by 
weight 0.5 % or less of phosphorus  1.2 1.3 1 3 3   
230630  - of sunflower seed s 1.0 0.0 1     
281410  - anhydrous ammonia  0.9 5.5  1 1   
270111  -- anthracite  0.9 0.0 1     
720852  -- of a thickness of 4.75 mm or 
more but not exceeding 10 mm  0.9 0.0 3     
270400  Coke and semi -coke of coal, of 
lignite or of peat, whether or not 
agglomerated; retort carbon.  0.9 0.0 3     
TOTALS  47.5  52 29 25 2 2 
Note:  Based on the HS 2012 nomenclature . 
Source:  WTO estimates based on data from EU and UNSD -Comtrade database.  
 
4. Table A3 .4 shows market  access opportunities for EU 's top 25 exports in t he Ukrainian  
market. These exports, which covered 182 lines at the 6 -digit level, accounted for 28.6% of the 
EU's global exports during 20 13-2015. Of the 182 lines, about 60% (or 116 lines) were already 
duty-free on a MFN basis in 2016 . For the remaining  66 lines, all duties will be gradually eliminated 
between 2016 and 20 26.  WT/REG353/1  
 
- 56 - 
 
  Table A3 .4 Ukraine: Market access opportunities under the A greement for EU's top 25 
exports to the world  
EU's top export products in 2013 -2015  Access Conditions to Ukraine's import 
markets  
HS number and description of the product  
Share in global 
exports (%)  MFN 2016  No. of duty free 
lines under the 
Agreement  Average MFN 
applied rate 
(%) No. of lines  
2016  
2019  
2023  
2026  duty-free  
dutiable  
300490  Medicaments consisting of m ixed or 
unmixed products for therapeutic or 
prophylactic purposes, put up in 
measured doses.  3.6 0.0 1      
870323  -- Of a cylinder capacity exceeding 
1,500 cc but not exceeding 3,000 cc  3.4 8.8  8   3 5 
271019  Medium oils and preparations, of 
petroleum or bituminous minerals, not 
containing biodiesel, n.e.s.  2.7 0.9 32 8 8    
710813  -- Other semi -manufactured forms  2.3 3.0  3 3    
880240  - Aeroplanes and other aircraft, of an 
unladen weight exceeding 15,000 kg  2.3 0.0 1      
271012  -- Light oils and p reparations  2.1 3.1 25 22 5 1 16  
870324  -- Of a cylinder capacity exceeding 
3,000 cc  1.6 8.3  3   1 2 
870332  -- Of a cylinder capacity exceeding 
1,500 cc but not exceeding 2,500 cc  0.9 10.0  4   1 3 
300210  - Antisera, other blood fractions and 
immunolo gical products, whether or 
not modified or obtained by means of 
biotechnological processes  0.9 0.0 4      
841112  -- Of a thrust exceeding 25 kN  0.7 0.0 3      
880330  - Other parts of aeroplanes or 
helicopters  0.7 0.0 2      
841191  -- Of turbo -jets or tu rbo-propellers  0.7 0.0 1      
710231  -- Unworked or simply sawn, cleaved 
or bruted  0.6 0.0 1      
870899  Parts and accessories, for tractors, 
motor vehicles for the transport of ten 
or more persons, motor cars and other 
motor vehicles principally designe d for 
the transport of persons, motor 
vehicles for the transport of goods and 
special purpose motor vehicles, n.e.s.  0.6 1.6 4 3 3    
848180  - Other appliances  0.6 0.0 17      
711319  -- Of other precious metal, whether or 
not plated or clad with precious  metal  0.6 10.0  1  1   
870840  - Gear boxes and parts thereof  0.5 2.4 4 5 4 1   
710812  -- Other unwrought forms  0.5 2.0  1 1    
851762  -- Machines for the reception, 
conversion and transmission or 
regeneration of voice, images or other 
data, including s witching and routing 
apparatus  0.5 0.0 1      
870322  -- Of a cylinder capacity exceeding 
1,000 cc but not exceeding 1,500 cc  0.5 10.0  3    3 
300220  - Vaccines for human medicine  0.5 0.0 1      
853710  - For a voltage not exceeding 1,000 V  0.5 1.3 3 1 1    
901890  - Other instruments and appliances  0.4 0.0 8      WT/REG353/1  
 
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  EU's top export products in 2013 -2015  Access Conditions to Ukraine's import 
markets  
HS number and description of the product  
Share in global 
exports (%)  MFN 2016  No. of duty free 
lines under the 
Agreement  Average MFN 
applied rate 
(%) No. of lines  
2016  
2019  
2023  
2026  duty-free  
dutiable  
847989  Machines and mechanical appliances, 
n.e.s.  0.4 0.0 8      
870333  -- Of a cylinder capacity exceeding 
2,500 cc  0.4 10.0  4   2 2 
TOTALS  28.7  116 66 25 3 23 15 
Note:  For the calculation  of averages, specific rates are excluded and the ad valorem  parts of alternate 
rates are included .  
 Based on the HS 2012 nomenclature.  
Source:  WTO estimates based on data from Ukraine  and Eurostat . 
__________