Russian Prime Minister Putin admits trade protective measures if introduce free trade area between Ukraine and EU

Ukrainian News Agency | Tuesday, April 12, 2011

Russian Prime Minister Putin admits trade protective measures if introduce free trade area between Ukraine and EU

Russian Prime Minister Vladimir Putin thinks that Russia quite possibly may apply trade protective measures if sign the free trade area agreement between Ukraine and the European Union, he has announced in course of the Ukraine-Russia negotiations that are taking place in Kyiv.

The Russian prime minister says that Russia may resort to such measures given certain positions that may be present in this agreement.

"I want to remind, the level of tariff protection of the customs union [CES] countries is approximately ten point five percent, and the level of tariff protection of Ukraine in the WTO is four point five percent. We have fears that if the free trade area with the European Union is created on the same conditions, then a considerable part of commodities will not be in demand at external markets and these commodities may get in Ukraine to our customs territories and in this case we’ll have to introduce protective measures," said Putin.

In his words, Russia sees no big problems if Ukraine signs the free trade area agreement with the EU.

"The question is, of course, what Ukraine will arrange with its partners within the framework of creation of the free trade area with the European Union. We are in similar talks with the European Union ourselves," he stressed.

The Russian prime minister remarks, in order to avoid such problems, it is necessary to neatly figure out in advance corresponding decisions.

He says that if look to experts’ estimations, Ukraine’s integration in the CES customs union may bring it immediate profit from USD 6.5 billion to USD 9 billion.

In Putin’s words, such results may be achieved owing to the growing opportunities for heave machine-building, steelmaking and chemical industries.

"Ukraine’s annual GDP growth will make one-and-a-half or two percent," added Putin.

If Ukraine integrates in the CES customs union, he says, it will be able to remove those restrictions in the Ukraine-Russia trade.

At the same time he says that Russia in any case will strive to development of trade-economic relations with Ukraine.

As Ukrainian News earlier reported, Russia keeps to an opinion that possible Ukraine’s participation in the customs union of the Common Economic Space is not in conflict with the creation of the free trade area between Ukraine and the European Union.

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source: UNA