Mark Hellyer A4U STE on DCFTA Policy Implementation February 2018

1. Helpdesks on AA/DCFTA in Selected Ministries of UkraineHow to begin Development of HelpdesksCourse number: EUI-S15 Mark Hellyer A4U STE on DCFTA Policy Implementation February 2018

2. Overview of Workshop 3 2 1 Principles of Helpdesk Overview of AA/DCFTA Information Helpdesk Focus Modus Operandi Tracking Queries Introduction of different types of Helpdesks and range of activities. Understanding of the Basics of the Association Agreement and the scope of Implementation. How to find the required information and develop communications to target groups in a usable format Monitoring queries to justify helpdesk (usefulness and impact) and refine communication/services Based on the agreed focus, define the operational structure and core features Determining the objectives and target of a Helpdesk 6 4 5

3. 1 Overview of AA/DCFTA Understanding of the Basics of the Association Agreement and the scope of Implementation.

4. The EU Neighbourhood Policy • Main objective: Create an ring of stability, prosperity, democracy and security • Establish an EU-ENP area of ‘regulatory convergence’: free movement of capital, goods and services; people-to-people contacts, lower production costs, less bureaucracy… • Gradual integration into the EU internal market (market access) • Regulatory convergence towards the EU acquis (legal and institutional reforms) • Business climate: investments • Private sector development: SMEs

5. Ukrainian Ambition Integration with the EU Adoption of European Values (growth and prosperity) What does that mean? • Using EU policy as a model for economic reform (Integration into national policy reform process) • Policy Results (based on clear aims and results) • Transparency (certainty) • Openness (only necessary regulation) • Risk based controls (types of control based on risk and proportionality)

6. Outline of the AA signed on 27 June 2014 – DCFTA 1st Jan 2016 Implementation over 10 years IV. Trade III. Justice, Freedom and Security V. Economic Cooperation • Including • Foreign and security policy • Combating terrorism • Dialogue on Rule of law and human rights • Protection of personal data • fight against illicit drugs • Equal Treatment of legal workers • Gradual steps towards a visa-free regime • Dialogue on Money laundering Including • liberalization of tariff (incl. TRQ), export taxes, RoO • Commitments on trade defence and safeguards • Approximation of SPS legislation • Alignment of Technical Regulations • Reform of customs and trade facilitation • Gradual approximation to EU public procurement • Commitments on Geographical Indications. • Approximation to competition policy • Trade-related energy, as applicable. • Transparency in trade policy making, including openness to stakeholders enquiries • Dialogue on of WTO trade remedies, trade agreements with other countries, IPR, trade and sustainable development. • Including • GMO monitoring • Road transport • Company law, corp. governance, accounting and auditing • Energy • Environment • Health and safety

7. Scope of Coverage 1. Customs and tariffs • Progressive revision of tariff schedules and implementation of a TRQ system for selected agricultural products (Chapter 1) • Phasing out of Customs duties on exports (Article 31) • Dialogue on trade Agreements with other countries (Article 39) and; Administrative Cooperation and Coordination with Other Countries (Article 37) • Adoption and administrative application of rules of origin Article 40 • Adoption and implementation of a Mechanism for Safeguard Measures on Passenger Cars (Article 44) and; second hand clothing • Reform of customs and trade facilitation of legislation and procedures to ensure effective control and support facilitation of legitimate trade (chapter 5) 2. Trade Remedies • Dialogue on application of WTO compatible Anti-dumping and Countervailing Measures and trade remedies (Article 51) • Establishment of dispute settlement and Mediation mechanisms (chapters 14 and 15)

8. Scope of Coverage (2) 3. Sanitary and Phytosanitary Measures • Gradually approximate its sanitary and phytosanitary and animal welfare legislation and enforcement procedures to that of the EU (Chapter 4) 4. Technical Regulations, Standards, and Conformity Assessment, including ACAA • Gradual alignment of sectoral and horizontal legislation, institutions and standards regarding Technical Regulations, Standards, and Conformity Assessment, including negotiation of an ACAA (Title IV Chapter 4)

9. Scope of Coverage (3) 5. Services • Legal and regulatory approximation to EU acquis in the general Framework of trade in services including Temporary Presence of Natural Persons for Business Purposes, as well as specific sectors: Computer Services; Postal and Courier Services; Electronic communications; Financial Services; transport and; Electronic Commerce (chapter 6) • Complete the liberalisation of transactions on the capital and financial account of balance of payments equivalent to the liberalisation in the EU Party prior to the granting of internal market treatment in the area of financial services (chapter 7) 6. Public Procurement • Gradual Legislative approximation and institutional reform of key elements of the EU public procurement acquis and development of mechanisms for mutual • Market access (chapter 8) 7. Geographical Indications and Intellectual Property • Dialogue and cooperation in intellectual property (chapter 9) in line with WTO rules and regarding Geographical Indications, mutual recognition and enforcement of each parties Geographic Indicators, including transitional mechanism for selected sensitive protected EU titles in Ukraine’s market.

10. Scope of Coverage (4) 8. Competition Policy • Approximation and enforcement, as well as co-operation and co-ordination between competition authorities to further enhance effective competition law enforcement, and to fulfil the objectives of this Agreement through the promotion of competition and the curtailment of anti-competitive business conduct or anticompetitive transactions. (chapter 10) 9. Trade-Related Energy • Reform of national legislation on trade-related energy (chapter 11) in areas including Domestic regulated prices; Prohibition of dual pricing; Customs duties and quantitative restrictions; Transit; Transport And; Cooperation on infrastructure 10. Transparency • Establishment of Enquiries and contact points for transparency (chapter 12) 11. Trade and Sustainable Development • Dialogues on trade and sustainable development (chapter 13)

11. Scope of Coverage (5) 12) Approximation relating to energy cooperation • EU acquis on the promotion of Energy Efficiency, energy performance of buildings, energy end-use efficiency and energy services and, labelling and standard product information of the consumption of energy and other resources by household appliances (Article 341 and Annex XXVII) 13) Road Transport • EU acquis regarding road safety, road worthiness of vehicles, movement of dangerous goods, recording equipment in goods transport vehicles (Article 368 and Annex XXXII) 14) Company law, corporate governance, accounting and auditing • Protection of shareholders, creditors and other stakeholders in line with EU rules and Introduction of relevant international standards at national level and gradual approximation to EU law in the field of accounting and auditing (Article 387 and Annex XXXIV)

12. Scope of Coverage (6) 15) Environment and water/waste water treatment • Approximation of EU legislation on; air quality; water quality and resource management, waste and resource management and shipment of waste; industrial pollution and industrial hazards; Chemicals (Article 363 and Annex XXX) 16) GMOs • EU acquis on deliberate release into the environment of genetically modified organisms and repealing transboundary movements of genetically modified organisms (Article 363 and Annex XXX) 17) Health and Safety • EU acquis on safety and health of workers at work, minimum safety and health requirements for the workplace, use of work equipment, personal protective equipment, minimum safety and health requirements at temporary or mobile construction sites, protection of workers from risks related to exposure to biological agents at work, risks related to chemical agents at work requirements for work with display screen equipment, provision of safety and/or health signs at work, risk from explosive atmospheres and risk arising from physical agents (vibration, noise and electromagnetic fields) (Article 421 and Annex XL)

13. AA/DCFTA: Different kind of Agreement • Not just tariff preferences • Alignment of Legislation with that of the EU (commitments) • Once aligned, free movement without further checks (equal treatment) • Transparency and certainty of laws and their application {big brother is watching} Main benefits: Better market access (> 500 million consumers) Improved business climate Increase competitiveness Consumers have better quality, cheaper and safer products Increased production for sales in national, EU and global markets Other European Policies – Improved Environment, safer roads

14. AA Implementation Process (Not Just Legal Approx.) • Max. Opportunities and Min. Costs for business

15. Few specifics and Examples

16. AA/DCFTA Audit – Direct Effect on Business

17. SPS Control in the EU Exports of products of Non-Animal Origin Exports of products of Animal Origin • Only countries that have been authorised by the EU can export products subject to SPS measures. • FVO • Verify compliance of EU food regulations with practices in MS • Verify equivalence in Third Countries • Carry out inspections of the Competent Authorities • Approved Facilities • DG Sante database of countries and facilities by sector • Exports must have Health certificate by approved bodies • Selected Importers in EU • Selected border posts, Advance notification • Exports must have Health certificate by national bodies or testing from accredited laboratories Ukraine Adopting Acquis – Approval for all over time

18. Example: Compliance with Product Requirements (eg Chicken meat) Legislation Affect on Business (1 part of contaminants – Dioxins) • Control of contaminants • Control of pesticide residues • Control of residues of veterinary medicines • Health control of products • Traceability • Labelling for foodstuffs • Section 5 – sets limits for dioxins and dioxin-like PCBs in meat • New machinery to chemically remove dioxins in meat • Test/verify • Health Cert from competent authority • Export or as/when nationally approximated

19. Control of Product Safety (compliance with Technical Regulations) Risk Based: • Certification by EU Institutions (eg ECHA under REACH) and entry points • Approval by EU notified bodies for Conformity Assessment certification (NANDO) • Testing from EU accredited laboratories • Self Certification Ukraine Adopting Acquis – ACCA - CABS and LABS (recognised) DCFTA Analytical Papers

20. Methods of Compliance Company Declaration of Compliance (DOC) Harmonised Standards Low Risk Products (Internal Control) Medium Risk (Type Approval) High Risk (Mandatory CA) • Technical File Preparation • Product Design (material input) • Production quality (GMP – TQM) • Product quality • Product verification • Input DOC • Testing (in-house; CAB/LAB) • GMP (certified or not) Product or Full Conformity Assessment by Notified Body (Certification) • Input DOC • Testing (in-house; CAB/LAB) • GMP (certified or not) Product or Full CA by Notified Body

21. Geographic Indications • Protected for 10 Years • Champagne • Cognac • Madeira • Porto • Jerez /Xérès/ Sherry • Calvados • Grappa • AnisPortuguês • Armagnac • Marsala • Malaga • Tokaj • Protected for 7 Years • ParmigianoReggiano • Roquefort • Feta Article 208 Temporary measures (3) For a transitional period of 10 years from the entry into force of this Agreement, the protection pursuant to this Agreement of the following geographical indications of the EU Party shall not preclude these geographical indications from being used in order to designate and present certain comparable products originating in Ukraine

22. EXAMPLES – Accounting Practices Administrative Affect on Business • Accounting • Requirements for record keeping, P&L, balance sheets • Requirements for reporting/auditing to authorities • Publication of accounts • Accounting systems (manager or accounts) – and/or software • External audit services • Form filling for authorities • Publication costs

23. Example: Horizontal Measures (transport and Road safety: including limits on drivers working time) Legislation Affect on Business • Council Regulation (EC) 561/2006 due to be approximated into national legislation in • Ukraine within 5 years • Investments (fleet of 20 vehicles with 3 depots €20,000) • Tachograph unit €850 per vehicle • Tachchographuploader € 900 per 10 vehicles • Software and analysis systems €400 plus PC per depot • Analysis of records • Reporting to Authorities

24. QUESTIONS

25. 2 Principles of Running a Helpdesk Introduction of different types of Helpdesks and range of activities to be considered when designing helpdesk.

26. Fundamental Principle of Running a Helpdesk “To help” [or just to look like helping??] Biggest Mistake in helpdesk design is lack of vision (why do you want this) and planning (good idea or it will look good) Quality Assurance definition: “performs as it was designed to” VISION (rest of presentation, but now look at framework and principles)

27. What Does HELP Look like? 2 – Pointer Can be a pointer to other sources – don’t need to provide answer yourself (but just do not use this to dismiss – make sure source will give help, not just pass them on to someone who will not answer or pass on again) 1 - Information Can be any type of information – but short and specific and take little time to answer (this is not consultancy or detailed information campaign – general but useful pointer to get target started) . B C A 3 – Not Replication It is not simple replication of original sources or why do the user not just go there –needs to be some value added (even if its gathered – list of various sources or summarised information) D 5 – Understanding Always put yourself in the position of the recipient to ensure relevance and usefulness of the repsonse. E 4 – Delayed Reply Cannot know everything - Do not be afraid to not provide immediately – I don’t know but will find out and send later – important is it’s the information that is needed, not what you have 6 – Be Prepared Most important is to research and have as much information as you believe is needed – but keep checking and updating. F

28. Passive versus Active Queries Passive Information Active Information • Static information aimed at addressing common needs • Brochures such as how to export • Profiles such as 2 page on exporting electronics to the EU • Directories of sources of information • FAQ • Requires constant surveying and sampling to ensure the information provided is relevant and usable • Responding to specific enquiries from the client • Research undertaken to answer • Build Databank for answering query • similar in future • Tailored response ad • Log and keep information to help FAQ • Impact more tangible and relevant but more time/resource • Do not have to think about needs so much as CLIENTS come to you

29. Delivery Channels (a Helpdesk can use 1 or more) Telephone Hotline Telephone number – must be manned – and answered or answer machine for when available In person Visitors to a reference centre or office. EG EU Euro Information Centres– Georgia have AA Help Centre Email/Mail Response at leisure but make sure all is responded to Webpage Must be dynamic (searchable or navigable) and kept up to date and relevant Help Desk Advertising Not one off information or advertising service– regular eg weekly publication of Commodity Prices Live Chat Similar to Telephone and must have available operators within designated times Mobile Helpdesk At Events such as conferences (helpdesk stand and/or mobile travelling “clinics”

30. Steps to Design and Implement Helpdesk (your tasks) 01 02 Define Strategy 03 Operational Design 04 Build & Implement Research & Databank 05 ✓ M&E System • This presentation Outline steps 1-4 • No single solution –cannot tell you what or how –investigate • F/UP Workshops and help

31. Track Record and Experience 2 Years Telephone Hotline to UK companies on compliance with EU regulations for 1992 (establishment of Single European Market) 18 months Telephone Hotline on investment to EC from Commonwealth countries under GSP (classification, tariffs, quotas and rules of origin) 1 year manning 10 mobile events in Asia on exporting to Single European Market 2 years in person helpdesk at Bhutan Export Promotion Centre Establishment of online and telephone WTO enquiry centre in Ukraine (design, procedures manual, training and mentoring) Design of Caribbean Export’s, Export helpline Establishment of 11 helpdesks in CCI’s in Ukraine on exporting to EU under DCFTA – training, procedures, M&E and mentoring Set up 5 sector compliance helpdesks in Georgia, Moldova and Ukraine

32. QUESTIONS

33. 3 Helpdesk Focus Determining the objectives and target of a Helpdesk

34. OASIS FRAMEWORK s Scoring i Implementation o Objectives s Strategy a Audience Methods How to achieve objectives? (channels) Types of information? Vision What does the organisation want to achieve with the helpdesk? Targeting Who are the expected users or beneficiaries of the help to be provided? Plan Implementation plan with actions and deadlines to build helpdesk Evaluation How will you evaluate success? What will you measure? First task: to prepare concept paper that defines the proposed helpdesk Approval: Buy in and agreement

35. o Objectives VisionWhat does the organisation want to achieve with the helpdesk? Why is it creating a helpdesk? Is it to meet some identified need or political drive? If so what? What does the Ministry want to do? What will Success look like? • Be specific • Realistic • Honest Methodology 1. Interview the decision makers/policy makers – what do they want and why, who is the target 2. Also get ideas from other staff 3 Add your own ideas

36. Example: Objectives MEDT Establishing Helpdesks Objective could be stated as: To help export? Agree? NO to really help guide and mentor a company export, 20 days export strategy development plus 2-3 days per month for up to 2 years so 2 hour helpdesk (max) can do what ? More realistic Objectives would be: • Get targets interested in exporting by showing the opportunity • This will look like information provided and more companies planning to export and starting to prepare • Providing targets with overview of requirements to export to EU • Better understanding of steps required (compliance, tariffs, documents etc)

37. Multiple Objectives: MEDT Export Opportunities in EU Product Safety in Ukraine Liberalising services sectors Opening Public Procurement ………………….. Overall Vision Explain the opportunities and impact of AA/DCFTA Specific Objectives O1: Getting people interested in exporting O2: Understanding overall benefits of product safety and rights/obligations 03: Understanding what services are effected and how to will change 04: Provide Information on public procurement Note: cross ministerial responsibilities and linkages Eg Services liberalisation – postal services and Ministry of Infrastructure (acknowledge this in your concept and not link to other helpdesks as appropriate)

38. TargetingWho are the expected users or beneficiaries of the help to be provided? Who are we targeting (Business, Citizens in general, Politicians, other government, Combination)? What is their profile? a Audience • Be specific – Impacts information eg. SPS consumers vs. producers • Realistic –you cannot target everyone too big/different information needs Methodology 1. Interview decision maker on target 2. Research issues and problems 3. Ask potential beneficiaries their needs [(survey (Q or T), focus group) 4. Research number of targets

39. Example: Audience MEDT Helpdesk Objectives (hypothetical) • Get targets interested (believing they can) in exporting by showing the opportunity • Providing targets with overview of requirements to export to EU Literature Review, Survey of 1,000 businesses in Ukraine - 70% of SMEs want to export to the EU, but only 34% understand the rules. • SMEs (non-food) • 1.6 mn SMEs active (Ukrstat) • 50,000 SMEs in manufacturing/industry

40. MethodsHow to achieve objectives? (channels)Types of information? What will the helpdesk look like? Who will operate it? What type of information and where will it be sourced? s Strategy • Take account of resources Methodology 1. List the type and nature of information needed 2. Consider how to match objectives with delivery mechanisms

41. Example: UCCI Export Helpdesks 11 Helpdesks Est. 2014 217 Enquiries in 1st 3 Months 2017 10 helpdesks still in operation Each Average 4-5/month SAME ISSUE – DIFFERENT SOLUTIONS – no right or wrong Telephone hotline (UCCI, Kiev, Dnipr, Zaporizzya, Cherkasy) + UKREXPERT Website plus email (all) Online Chat (Zaporizzya) Mobile Helpdesk (UCCI and Kiev)

42. PlanImplementation plan with actions and deadlines to build helpdesk i Implementation What are the steps to build the helpdesk infrastructure? How will people know about Help? (Advertising and promotion [make sure you get queries (passive or active) – having a website or hotline does not mean people know and use it – visibility] • Concrete and detailed steps • Include identification and collection of information Methodology Develop action plan with tasks, description, timeframes, deadlines, resources and person responsible

43. s Scoring EvaluationHow will you evaluate success? What will you measure? What Indicators show success? How can M&E be used to improve “help”? • Even passive (did this help? Feedback on webpage) Methodology Assign Indicators Define Baseline Describe data collection and frequency

44. Example: Georgia DCFTA FDI ComStrat Helpdesks to MDAs

45. QUESTIONS

46. Next Steps START WORK ON HELPDESK CONCEPT PAPER FOR EACH MINISTRY What timeframe and deadline for First draft? Next workshop Distribute each in advance Brainstorm and refine each one as a group WHEN? ½ Day

47. Example: Ukraine’s WTO Notification & Enq. Centre 2004-2014 (Design Report) https://www.dropbox.com/s/ao6czupdtfdqbl5/Report%203%20-%20Structure%20of%20WTO%20Center.doc?dl=0 A. INTRODUCTION - B. SCOPE OF ACTIVITIES OF THE CENTERE C. FUNCTION 1. (NOTIFICATIONS AND ENQUIRY POINTS) ENQUIRY POINT ACTIVITIES LEVEL OF WORK ON ENQUIRIES ANALYSIS OF RESOURCES REQUIRED RECOMMENDED STRUCTURE OF THE CENTER G. SUGGESTED COMPOSITION AND RESOURCES REQUIRED FACILITIES CENTER SYSTEMS, PROCEDURES AND STRATEGIES

48. Parallel steps – outline now (as time allows)- start thinking and working on these and we will develop these topics in subsequent workshops • Procedures Manual • Reporting Structures Information Gathering

49. BREAK

50. Modus Operandi Based on the agreed focus, define the operational structure and core features 4