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Inside Ukraine № 10. July 2010. Customs Union, WTO and EU FTA. Customs Union, WTO and EU FTA. Active trade agreements. Ukraine’s role in integration.
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Inside Ukraine №10 July 2010
Customs Union, WTO and EU FTA Customs Union, WTO and EU FTA
Ukraine’s role in integration The shape of the Eurasian region will depend very much on Ukraine: whether it becomes a Chinese hegemony or a powerful Euroatlantic democratic community. Jean Chrétien
Ukraine’s role in integration Any new Eurasian union of states that develops around Russia without an independent Ukraine will will become less European and more Asiatic with every passing year. ZbigniewBrzezinski
A customs union • Single customs territory • No duties or restrictions internally • A single customs duty on third-country goods • A common foreign trade policy
Russian-style customs union • 400 exceptions that restrict the free movement of goods • Continuing customs control at borders between members • Non-tariff trade barriers such as quotas and subsidies
Russian-style customs union • Not a real customs union • Not even a free trade area
Russian-style customs union • Distribution of votes on CU Commission • Distribution of customs revenues
Russia’s integration intiatives Participant but not member Non-member Participates with reservations Associated memberstatus Observer status Unified Economic Space Economic Union Customs Union EAEA CIS 1991 р. (December) 1995 (January) 2003 (September) 1993 (September) 2000 (October)
Ukraine’s ambiguous position 13.02.2010 President says he is positive about the idea of joining a customs union with Russia 27.04.2010 President tells PACE session: “Joining the Customs Union with Russia, Belarus and Kazakhstan is impossible at this time.” Viktor Yanukovych
Ukraine’s ambiguous position “Ukraine could integrate into the Customs Union at a different pace and on different terms than Kazakhstan and Belarus.” Leonid Kozhara
Customs Union, WTO and EU FTA Moscow insists on the Customs Union Joining CU makes it impossible to set up an FTA with the EU... …and violates WTO rules
Unresolved issues with EU • Geographic identification of product origins • Agriculture, sanitary and phyto-sanitary norms • Duty policy • State procurements
Basics of colonial policy • Streamlining trade routes and protecting trade • Interfering in local conflicts to support battle-readiness of own armed forces • Linguistic and cultural expansion • Acquiring and exploiting economic assets • Forcing inconvenient international agreements
Inefficiency of colonial relations • Colonies cannot freely use their own resources and develop independently. • 20th century empires were spending more on their colonies than they were gaining. • The inevitable collapse of an empire leads to social upheaval for both sides.
From colonization to integration Integration following a double standard is more of a problem for Russia than Ukraine. Ukraine has all the leverage it needs to ensure high-quality integration with Russia. Russia has a unique opportunity to develop a new integration platform with Ukraine based on European principles.