The Free Trade Area Agreement (FTA) with the Commonwealth of Independent States will create favorable conditions for access of Ukrainian companies to the CIS market.

This opinion was expressed by Government's Commissioner for Cooperation with Russia, CIS, EurAsEC and other regional associations Valeriy Muntian in an interview with an UKRINFORM correspondent.

“The matter concerns access of Ukrainian goods to the CIS market. The agreement is strategically important, otherwise the Ukrainian economy loses not only trade volumes and revenues to the budget, but traditional markets,” he underscored.

Muntian added that financial-economic calculations confirm advisability of such a decision. According to an optimistic scenario, GDP growth of Ukraine following its CIS FTA accession is expected at UAH 37 billion, about 2.5% of GDP.

In addition, it is worth expecting additional 3% growth in the volume of agricultural production, food and light industries, metallurgical production and petrochemical industry, and mechanical engineering.

“Additionally, an increase in state budget revenues may be about UAH 9.4 billion a year plus creation of over 100,000 working places,” Muntian said.

According to the Commissioner, the agreement will replace presently existing bipartite and multipartite agreements on free trade, obligations of parties will be fixed in it on non-appliance of new restrictions in mutual trade, “therefore, worsening of the trade regime will not be allowed.”

Muntian noted that Ukraine stands for the FTA without restrictions and withdrawals. “Transparent” rules of play are established in the agreement, a decision about abolition of import duties is fixed, conditions of subsidies, clear and corresponding to the world practice, are set. And the fact that the agreement is signed, but not ratified, is according to him “an impermissible omiission.”

Speaking about agreement provisions, Muntian added that fixed terms of abolition of withdrawals on import are set in it, as well as provisions for reduction and stage-by-stage abolishment of export duties. At the same time, trade disputes will be settled within mechanisms and procedures accepted in the WTO.

On a proposal of the Ukrainian party, an item was added on holding consultations in case of negative operation of the free trade regime for development of measures aimed at renewal of mutually beneficial trade.

In Ukraine, export exceeds 50% of GDP, and 42% of foreign trade turnover or USD 70.8 billion fell on the CIS last year.

Ukrinform