Ukraine is prepared to waive the use of some geographic names in Ukrainian brand names over the next 10 years
   
The agreement on a Free Trade Area (FTA) between Ukraine and the EU is virtually ready, with only three unsettled questions remaining, to which the Ukrainian authorities are trying to find a compromise settlement, Ukraine’s Prime Minister Mykola Azarov recently informed. According to him, a “mandate to achieve a compromise” had been issued to the First Deputy Prime Minister Andrii Kliuiev, who departed for Brussels for negotiations on May 31.

The first of the items in question concerns grain exports. According to Azarov, the European commission insists on using the quota practice when it comes to Ukrainian grain. Meanwhile, for Ukraine a total liberalization of foreign trade with the EU would be more profitable. However, regardless of this, Ukraine is prepared to agree to a transition period, during which export quotas will grow, Azarov claims.

The second item concerns the services market. The prime minister explained that the European commission is not prepared to allow Ukrainian haulers to its market. The Ukrainian party also suggests imposing a transition period in this sphere, after which all limitations will be canceled. “And in that time we must reach the optimum figures in the services market,” explained Azarov.

The third item which is currently causing debates is the use of geographical names in Ukrainian brand names. “We are prepared to waive the use of distinctive geographical names during a transition period, that is, over the next 10 years,” he said.

The Day has asked the chairman of Ukrainian Union of Economists Oleksandr KENDIUKHOV (Ph.D. in Economics) to assess the course of the negotiations concerning the preparation of the FTA agreement.

“Signing the FTA agreement by the end of 2011 is quite feasible, since the EU itself will only win if Ukraine joins the common economic area. An analysis of Ukraine’s exports of goods and services suggests that we have a negative trade ba-lance with the EU. In case of liberalization, it will become even more negative, i.e., the imports of goods to Ukraine will grow even bigger as compared to exports to Europe.

“As far as these three debatable issues go, the situation is as follows. Allowing Ukrainian grain to its market based on a quota principle, the EU seeks to protect its own farmers. But all of these export quotas may be lifted at any moment, and they are most likely to. The reason is that the European processing industry has been on the upsurge lately. But

Europe is known as an importer, rather than a producer of raw agrarian produce [though the EU has significantly increased exports in recent years and now runs a small surplus. – Ed.]. As for haulers, it should be kept in mind that in this market

European entrepreneurs make millions of dollars. So it seems to me that here the EU will remain adamant.”

UkrAgroConsult