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The EU’s Association Agreements with the Eastern Partners

This article discusses the model, market access, and institutions of the EU's Association Agreements with the Eastern Partners, including Ukraine. It explores the benefits and challenges of these agreements and highlights the importance of political objectives, economic reform, and support measures.

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The EU’s Association Agreements with the Eastern Partners

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  1. The EU’s Association Agreements with the Eastern Partners Dr. Rilka Dragneva-Lewers 24 February 2017

  2. The model • Deep and comprehensive agreement • ‘Gradual integration into the EU internal market’ • Market access • NTBs • Services/establishment/public procurement • Trade facilitation

  3. Market access EU-Ukraine

  4. The model • Via legislative and regulatory approximation • Not new in the Global Europe agenda • Binding obligation • Market access conditionality • Except in areas of competition, trade facilitation, trade-related energy, etc. • Including extensive institutional reform

  5. Template • Specificity • Extensive and specific lists in annexes (services/establishement) • ‘Areas’ of directives (TBs) • Comprehensive Programme to identify directives (SPS) • basic, mandatory, non-mandatory provisions (public procurement) • Possibility to amend or update lists • ECJ interpretative authority • Deadlines

  6. Institutions: asymmetry • Common values conditionality • Suspension clause: right to take appropriate measures if violation of the essential element • Market access conditionality • Monitoring (progress reports + on the spot missions + extra mechanisms per chapter) • Assessment by joint institutions + decision on progress • Consensus • Not subject to DCTFA DSM

  7. Market access conditionality • TBs: Conclusion of Agreement on Conformity Assessment and Acceptance of Industrial Products (ACAA) – no additional testing and conformity assessment procedures for access • After a check by a EU party • SPS: determination of equivalence • After regular monitoring and decision of SPS sub-committee • Public procurement: Symmetrical access upon evaluation • Quality of legislation adopted plus practical implementation

  8. Institutions • Summit meetings • Association Council • Association Committee • Sub-Committees • Parliamentary Association Committee • Civil Society Platform

  9. Association Council • Legally binding decisions by agreement • Broaden scope without new agreement • Market access conditionality • Updating and amending annexed acquis • Binding DR on non-DCFTA part • DCFTA – quasi-judicial model of trade adjudication • Disputes on legislative approximation • Obligation! of arbitration panel to request ruling • Binding rulings of ECJ!

  10. The model • Not a pre-accession agreement • ‘close and privileged ties’ • ‘recognising European aspirations’ • ‘neither includes nor excludes’

  11. The model • The enlargement template without the membership perspective • ‘Wholesale’ export of the acquis with no guarantee for integration into single market

  12. EU’s perspective • Low commercial interest • Outside 2006 Global Europe economic criteria • Miniscule trade  unlikely destination for exporters and investors • Primacy of political objectives: security, stability, prosperity

  13. Trade importance 2015 (%)

  14. However … • Extremely complex document (templates and procedures) • Standard for ‘legal approximation’ • Sequencing insufficiently tailored to needs • Regulatory ‘straightjacket’ • Given volumes of trade • In areas not linked to market access • No immediate economic gains

  15. However … • High adjustment costs • Particularly high in environment, transport, energy, competition, SPS • Deemed to be short-term • ‘blueprint for economic reform’ • Disruption of existing CIS ties – enhanced costs • State capacity, crisis • Political economy/Incentives of elites!!! • Abstract bottom-up support

  16. TRQs • Poor utilisation • Health safety • SPS standards • Insufficient domestic production • Low demand in EU (competitiveness) • No trade partners in EU

  17. Association Agendas • General priorities: • Constitutional reform • election reform • judicial reform • HR • public administration reform

  18. ‘Flexibilities’ • Additional autonomous trade measures • Complementary measures • Support Group for Ukraine • €12.8 bn support package (Macro-Financial assistance + technical assistance) • Visa Liberalisation Action Plan

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