EduBourseActualitésEU and Ukraine end restrictions on trade in textiles

EU and Ukraine end restrictions on trade in textiles

The EU and Ukraine have today signed a bilateral agreement on trade in textiles. Under this agreement, the last remaining restrictions to trade in textiles and clothing products will be lifted, and both sides agree to matching low levels of customs duties. Although quantitative restrictions were already lifted in early 2001, the agreement ends import and export licensing requirements for all textiles and clothing products.

EU Trade Commissioner Peter Mandelson said: “This agreement is an important step in strengthening and liberalising the economic and trading relationship between the EU and the Ukraine. It should pave the way for more far-reaching economic links that can benefit both partners.”

The agreement, which was initialled on 22 December 2004, will prolong the provisions of the bilateral agreement which has been in place since 1993. Trade in textiles and clothing since the signing of this agreement has developed very positively for both sides, especially since the abolition of quantitative restrictions in early 2001. The current agreement prolongs the favourable provisions for both partners and removes the export licensing requirements on the Ukrainian side.

The main elements of the prolonged agreement are:

Ukraine and the EU continue to apply the same tariff levels, which do not exceed 4 % for yarns, 8 % for fabrics, and 12 % for clothing.
There are no quantitative restrictions or export and import licensing requirements.
Both Parties refrain from adopting any non-tariff measures which could hinder trade in textile and clothing products
Both Parties will ensure close administrative co-operation.
The agreement contains a clause of suspension of benefits in case of non-respect of commitments.
Background

On EU-Ukraine trade relations:

Ukraine is a priority partner country within the EU’s European Neighbourhood Policy (ENP). The EU-Ukraine Co-operation Council on 21st February 2005 endorsed a joint ENP Action Plan, building on the basic framework provided by the Partnership and Co-operation Agreement, which entered into force in 1998. Following recent political changes in Ukraine the EU has expressed its desire to pursue a much closer economic relationship, including the possibility of a Free Trade Agreement and concrete measures to remove regulatory and non-tariff barriers to trade. As a first and necessary step towards this, the EU has offered strong support for Ukraine’s accession to the WTO in 2005.

Following enlargement, the EU has become Ukraine’s largest trading partner, with about 33% of Ukraine’s total trade. That relationship is growing fast, with average growth of 12% p.a. since 1995, and growth of around 20% over the first 11 months of 2004. In 2003 Ukraine’s exports to the EU 25 amounted to € 5.8 billion, and imports € 8.8 billion.

On textile trade:

Ukraine’s textiles and clothing exports to the EU 25 in 2003 amounted to € 472 million. EU 25 exports to Ukraine amounted to € 732 million. Of the € 472 million in exports from Ukraine, € 425 million were clothing and made-up goods and € 47 million were textiles.

Total EU 25 imports of textiles and clothing in 2003 amounted to € 75 billion and its exports to € 44 billion. The EU’s main textile and clothing trading partners are China, Turkey and India.

More details on the EU’s policy concerning the textiles and clothing sector can be found at: http://europa.eu.int/comm/trade/goods/textile/index_en.htm

Pierre Perrin-Monlouis
Pierre Perrin-Monlouis
Fondateur de Rente et Patrimoine (cabinet de gestion de patrimoine), Pierre Perrin-Monlouis est un analyste et trader pour compte propre. Il vous fait profiter de son expérience en trading grâce à ses analyses financières et décrypte pour vous les actualités des marchés. Son approche globale des marchés combine à la fois l'analyse technique et l'analyse fondamentale sur l'ensemble des marchés : crypto, forex, actions et matières premières.
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