Chapter “Trade remedies” of DCFTA covers traditional trade defence instruments (anti-dumping, anti-subsidy and global safeguard). WTO rights and obligations will be applied to ensure fair treatment, for example, anti- dumping duties will be capped to the level of dumping or subsidy. A public interest test may be carried out before imposing any measures. The DCFTA will increase the transparency of investigations and Parties will set up a mechanism for cooperating on trade remedies. 

An agreement on cars will allow Ukraine to apply a well-defined safeguard measure for 15 years on cars imported from the EU. In the reference period 2002-2010, Ukraine imported on average 41.000 cars a year from the EU, 12.9% of the Ukrainian market (EU-Ukraine, 2018). 

According to the Article 44 of Associate Agreement Ukraine may apply a safeguard measure in the form of a higher import duty on passenger cars originating in the EU Party under tariff heading 8703 (hereinafter referred to as the "product"), as defined in Article 45 of Associate Agreement, in accordance with the provisions of this Section, if each of the following conditions is met: 

• if, as a result of the reduction or elimination of a customs duty under Associate Agreement, the product is being imported into the territory of Ukraine in such increased quantities, in absolute terms or relative to domestic production, and under such conditions as to cause serious injury to a domestic industry producing a like product; 
• if the aggregate volume (in units) of imports of the product in any year exceeds the trigger level set out in its Schedule included in Annex II (table 2) to Associate Agreement; 
• if the aggregate volume of imports of the product into Ukraine (in units) for the last 12-month period ending not earlier than the penultimate month before Ukraine invites the EU Party for consultations in line with paragraph 5 of 44 Article exceeds the trigger percentage set out in the Schedule of Ukraine in Annex II (table 2) of all new registrations of passenger cars in Ukraine for the same period (Association, 2014). 

 

Table 2 Safeguard measures on passenger cars

Indicator/Year	1	2	3	4	5	6	7	8	9	10	11	12	13	14
Trigger Level (units)	no safeguard applicable	45 000
Trigger percentage, %		20	21	22	23	24	25	25	25	25	25	25	25	25
Maximum level of import duty plus safeguard surcharge, %*		10

*The import duty level applicable – see schedule of commitments for respective tariff lines under tariff heading 8703

In the Chapter “Trade remedies” the following terms were defined:

•  “the product” means only passenger cars originating in the EU Party and falling under tariff heading 8703 in accordance with the rules of origin established in Protocol I to this Agreement concerning the definition of the concept of ‘originating products’ and methods of administrative cooperation; 
•  “serious injury” shall be understood in accordance with Article 4.1(a) of the Agreement on Safeguards. To this end, Article 4.1(a) is incorporated into and made part of this Agreement, mutatis mutandis; 
• “like product” shall be understood to mean a product which is identical, i.e. alike in all respects to the product under consideration, or in the absence of such a product, another product which although not alike in all respects, has characteristics closely resembling those of the product under consideration; 
• “transition period” means a 10-year period beginning on the date this Agreement enters into force. The transition period will be extended for three more years, if before the end of the year 10, Ukraine has presented a reasoned request to the Trade Committee referred to in Article 465 of this Agreement and the Trade Committee has discussed it; 
• “year one” means the 12-month period beginning on the date of entry into force of this Agreement; 
• “year two” means the 12-month period beginning on the first anniversary of the entry into force of this Agreement; 
• “year three” means the 12-month period beginning on the second anniversary of the entry into force of this Agreement; 
• “year four” means the 12-month period beginning on the third anniversary of the entry into force of this Agreement; 

 

Article 54 regulates the technical cooperation, the Parties shall seek to identify, develop and promote trade-facilitating initiatives which may include, but are not limited to: 

• reinforcing regulatory cooperation through the exchange of information, experience and data; scientific and technical cooperation, with a view to improving the quality of their technical regulations, standards, testing, market survey lance, certification, and accreditation, and making efficient use of regulatory resources; 
• promoting and encouraging cooperation between their respective organisations, public or private, responsible for metrology, standardisation, testing, market surveillance, certification and accreditation;
• fostering the development of the quality infrastructure for standardisation, metrology, accreditation, conformity assessment and the market surveillance system in Ukraine; 
• promoting Ukrainian participation in the work of related European organisations; 
• seeking solutions to trade barriers that may arise; 
• coordinating their positions in international trade and regulatory organisations such as the WTO and the United Nations Economic Commission for Europe (hereinafter referred to as “UN-ECE”). 

Thus, the aims of Chapter 3 “Technical barriers to trade” is to reduce obstacles to trade arising from Technical Barriers to Trade (TBT): technical regulations, standards, conformity assessment procedures and similar requirements. 

The parties reiterate their commitments under the World Trade Organisation Agreement on TBTs and agree to cooperate on TBT issues to simplify and avoid unnecessary divergence of technical requirements. 

Ukraine will progressively adapt its technical regulations and standards to those of the EU. Future negotiation of an Agreement on Conformity Assessment and Acceptance of Industrial Products (ACAA) will provide that in specific sectors covered by it trade between the Parties will take place under the same conditions as between EU Member States. 

Provisions on labelling seek to keep it to a minimum to make it non-discriminatory. Harmonisation and/or mutual recognition of technical standards should cut existing non-tariff barriers in the agri-food sector by half and 35% in other sectors compared to 2004. 

The DCFTA includes key measures to ensure fast and efficient customs services. 

Ukraine is progressing towards fulfilling its legislative commitments, with the new Customs Code (2012) being broadly aligned with EU legalisation, although several amendments are still required. 

The main task for Ukraine is to ensure efficient implementation of existing legislation. Both public authorities and businesses have responsibilities in this regard. There remain serious problems of long queues and delays at crossing points with EU member states (Emerson, 2016). 

The adoption of European technical standards for industrial products is vital for the modernisation and competitiveness of the Ukrainian industry. 

Ukraine has adopted a Strategy for Development of Technical Regulation System until 2020 to eliminate technical barriers in trade with the EU. 

Ukraine is making good progress in first approximating the limited EU relevant directives, and second in adopting the huge number of European standards. 

Ukraine’s national accreditation system achieved recognition from the European Cooperation for Accreditation and the International Laboratory Accreditation Cooperation. 

Progress in establishing proper market surveillance system is proving more difficult (Emerson, 2016).