The document discusses the impact of the Deep and Comprehensive Free Trade Area (DCFTA) between Ukraine and the EU on businesses. The DCFTA will align Ukrainian regulations and standards with the EU in many areas including technical barriers to trade, sanitary and phytosanitary measures, customs procedures, and company/accounting laws. Some changes will require minimal investment while others like compliance with technical and food safety regulations will require businesses to understand new standards, test products, and get certifications. The study recommends businesses develop implementation strategies, make internal process changes, invest in upgrades, and get external certifications as needed to comply with the new regulations under the DCFTA.

1. The impact of the DCFTA on business
Paul de Lusignan
Support Group Ukraine

2. The DCFTA
• Title IV of the Association Agreement
• Enters into operation on 1 January 2016
• Covers the following topics:
• National treatment and market access for goods
• Trade remedies
• Technical barriers to trade
• Sanitary and phytosanitary measues
• Customs and trade facilitation
• Establishment and trade in services, payments, public
procurement, intellectual property, competition, energy, etc.

3. The DCFTA
Many of these will have a broad effect on
businesses, but notably
•Technical barriers to trade
•Sanitary and phytosanitary measures
will have a direct implication.

4. The study
• The study was intended to provide
"recommendations on the design of EU support
package targeting the private sector in order to
accompany the process of implementation of the
AAs/DCFTAs in Georgia, Moldova and Ukraine,
notably in relation to the compliance with the
EU norms in the domestic legislation."

5. Technical Barriers to Trade in the
DCFTA
• Reaffirms the TBT Agreement (Art. 54)
• Commits the parties to co-operation in technical
regulatory and standards issues (Art. 55)
• Align Ukrainian technical regulations and
standards, metrology, accreditation, conformity
assessment and market surveillance with
European practice (Art. 56)
• Make the necessary administrative reforms
necessary to implement this provision (Art. 57)
• Add an ACAA once alignment is achieved (Art.58)

6. Sanitary and phytosanitary
measures in the DCFTA
• Ensuring transparency;
• Approximation of laws;
• Recognising animal and plant health status of the
Parties;
• Mechanism for recognition of equivalence;
• Implementing the SPS agreement.
This applies only to agricultural products.

7. TBT issues: progress so far
• EU technical assistance programme in this area
comes to and end this year – a new one will begin
next year
• Progress on alignment of technical regulations for
product sectors
• New laws on standardisation, metrology and
conformity assessment have been passed by the
Rada
• Ministry of Economy (MEDT) gradually building
capacity

8. TBT issues: future actions needed
• Progress in institution building in standards,
conformity assessment, accreditation and
metrology
• The institution of a market surveillance system on
European lines
• Completion of alignment of technical legislation,
and of Ukrainian standards with ENs (European
standards).
• Improvement in awareness by industry of the
implications.

9. Changes to the business
environment
• Some of the changes that will affect business will
not require high levels of investment.
• Market Access (reduction in tariffs, export duties).
• The DCFTA will phase out EU protected GIs.
• New customs procedures and rules.
• Company Law, Accounting and Auditing.

10. Changes to the business
environment (continued)
• But some will:
• Compliance with technical regulations will require
understanding of the requirements, standards that
confer presumption of conformity, product design,
testing, certification, conformity assessment.
• Compliance with EU SPS measures: agricultural
producers will need to comply with hygiene and
food safety standards.
• compliance with legislation on energy efficiency
and environmental protection.

11. Actions recommended by the Study
• Information and knowledge of changes required
• Strategy for implementation and compliance
• Internal management and process changes
• Investment in plant and equipment
• External certification as necessary

12. • Thank you for your attention.
• Disclaimer: This presentation does not constitute
an official position of the European Commission.