Association agreement with Ukraine

KEY POINTS

The agreement comprises a preamble which sets out the reasons for the agreement and its aims, followed by seven titles.

General principles

The principles that are essential elements of the agreement between the parties are:

• respect for democratic principles, rule of law, good governance, human rights and fundamental freedoms;
• promoting respect for the principles of sovereignty and territorial integrity, inviolability of borders and independence and working against the proliferation of weapons of mass destruction.

The EU and Ukraine also agree that the principles of a free market economy underpin their relationship. They also recognise that the following are central to enhancing their relationship:

• the rule of law and good governance;
• the fight against corruption and different forms of transnational organised crime and terrorism;
• the promotion of sustainable development; and
• effective multilateralism.

Intensified political dialogue and cooperation

Political dialogue will be further developed to bring about gradual EU–Ukraine convergence in the areas of common foreign and security policy and common security and defence policy. Among other things, it will seek to:

• strengthen cooperation and dialogue on international security and crisis management to address global and regional challenges and key threats;
• build result-oriented and practical cooperation for achieving peace, security and stability on the European continent.

Justice, freedom and security

Priorities in this area include:

• consolidating the rule of law and strengthening institutions at all levels of administration in general; and
• law enforcement, in particular the administration of justice.

The aim is to strengthen the judiciary, improve its efficiency, safeguard its independence and impartiality and combat corruption. Respect for human rights and fundamental freedoms will guide the parties’ cooperation on justice, freedom and security.

The parties also commit to:

• increasing their dialogue and cooperation on migration, asylum and border management; and
• combating organised crime and money laundering.

The title also includes explicit mention of the parties’ wish for increased people-to-people contacts and their recognition of the importance of the introduction – in due course – of visa-free travel to the EU for Ukrainian citizens, provided that the conditions for well-managed and secure mobility are in place.

Trade and trade-related matters

The objective of the parties is to create a deep and comprehensive free trade area (DCFTA). They are committed to developing a new climate, promoting in particular trade and investment, and to stimulating competition, all of which are crucial to economic restructuring and modernisation. The DCFTA involves the gradual removal of customs tariffs and quotas, which – in line with the broader process of aligning Ukraine’s laws with EU laws, standards and practices (acquis) – will contribute to further economic integration with the EU single market.

Economic and sectorial cooperation

This title covers cooperation in a wide variety of fields and sectors, based on gradual alignment with EU laws and practices and, where relevant, with international norms and standards. Sectors concerned include:

• energy;
• macroeconomic cooperation;
• management of public finances;
• taxation;
• environment;
• industrial and enterprise policy;
• cooperation in employment, social policy and equal opportunities;
• civil society cooperation;
• cross-border and regional cooperation.

Financial cooperation

The EU and the EU Member States have given financial assistance to Ukraine since the 1990s. Ukraine can benefit from continued financial assistance through the relevant EU funding mechanisms and instruments to achieve the objectives of the association agreement. For the 2021–2027 period, the former European Neighbourhood Instrument has been replaced by the Neighbourhood, Development and International Cooperation Instrument – Global Europe.

Institutional, general and final provisions

This last title covers how EU–Ukraine relations are managed. The institutional set-up is as follows.

• EU–Ukraine Summit. This allows top-level political dialogue between presidents.
• Association Council. This is a ministerial-level dialogue where binding decisions can be taken.
• Association Committee. Assists the Association Council in preparing its duties; the committee can create subcommittees to implement sector cooperation.
• Parliamentary Association Committee. This is a forum for Members of the European Parliament and of Ukraine’s parliament to meet and exchange views.
• Civil society platform. This will promote regular civil society meetings and make recommendations to the Association Council.

Temporary trade liberalisation

On 25 May 2023, in view of Russia’s unprovoked and unjustified war of aggression against Ukraine, the European Parliament and the Council of the European Union adopted Regulation (EU) 2023/1077 introducing temporary trade liberalisation measures supplementing the trade concessions under the association agreement and suspending the existing trade defence measures for a period of 1 year. These measures entered into force on 6 June 2023. This regulation renews former Regulation (EU) 2022/870.

All the tariffs under Title IV of the association agreement with Ukraine establishing the DCFTA that had not yet been liberalised are suspended for 1 year. The suspension covers:

• fruits and vegetables subject to the entry-price system and agricultural products and processed agricultural products subject to tariff-rate quotas;
• the collection of anti-dumping duties on imports originating in Ukraine; and
• the application of the common rules for imports for imports originating in Ukraine.