Економика/ Внешнеэкономическая деятельность.

Kostina N.A.

Poltava university of economics and trade

EU-Ukraine relations: main challenges and opportunities

“The European integration is a key priority of foreign policy of Ukraine, the strategy of systematic-economic reforms”, - said Viktor Janukovytch after meeting with Jose Manuel Barroso in Brussels. EU-Ukraine relations have developed a lot in recent years, but still a lot of work should be done. Ukraine is said to be a priority partner within the European Neighborhood Policy. A joint EU-Ukraine Action Plan was endorsed by the European Council on 21 February 2005. It was based on the Partnership and cooperation agreement of 1994 and provided, according to the European Commission, a comprehensive and ambitious framework for joint of work with Ukraine in all key areas of reform. According to polls 56% of Ukrainians were for EU membership and 16% against in 2004. In 2008 63% of Ukrainians said they were in favor of joining the bloc. 53% of Ukrainians, older than 16 would like their country to join the European Union in the future according to polls in May 2010. Citizens aged between 20-39 and residents of Central and Western Ukraine appeared to be the strongest supporters of joining the EU. The current Azarov Government continues to pursue EU-integration. The policies of this Government do not exclude EU-integration, the EU Commissioner for Enlargement Štefan Füle stated this on May 12, 2010.Показать латиницей

The purpose of this research was to make a brief overview of relations between European Union and Ukraine and to give future perspectives of further development. Changes during recent decades established the global development process both in Europe and in the whole world. The joint efforts of different countries have contributed to the possibility of the formation of a real European integration process and strengthening and expanding the geographical boundaries of democratic European model of civilization as progress.

Ukraine, after gaining the Independence, was the result and embodiment of the transformational changes on the continent, so natural it defined its strategic goals of joining the European environment, democracy, rule of human rights and other norms and values maintained in a united Europe. The relevant official policy of Kyiv, the strategic goal of integration received not only approval but also formal support of the European Union, which now includes 27 countries. Since 1998 Ukraine and the European Union relations were governed by “Agreement on Partnership and Cooperation”. The next phase of integration is “Association agreement”. Such agreement will strengthen stability in Europe and indicate the extension of European integration processes in Western Europe, strengthen the impact of European Union.

EU created a list of criteria which countries have to meet in order to be able to join the union. Criteria for accession to the EU were approved in 1993 in Copenhagen. According to which a country-candidate should meet: 1)political criteria – the stability of institutions guaranteeing democracy, rule of law, respect for human rights, respect and protection of national minorities; 2)economic criteria - the availability of a market economy and ability to withstand competitive pressure and market forces in operation within the EU; 3)other criteria – the ability to assume obligations arising from EU membership, including strict adherence to the aims of political, economic and monetary union.

Speaking about economic relationships between Ukraine and the European Union, it should be mentioned that during the 1990s, the Netherlands, Germany, and Italy remained major trading partners of Ukraine. According to Eurostat, between 2000 and 2007 EU trade in goods with Ukraine more than tripled in value: exports rose from 5.5 bn Euro to 22.4 bn, while imports increased from 4.8 bn Euro to 12.4 bn. Nevertheless, this increase didn't make Ukraine one of the EU's major trading partners. In 2007, Ukraine accounted for only 2% of EU exports and a mere 1% of European Union imports which is toward the bottom of the EU's top 20 trading partners (16th). According to the European commission paper, trade with Ukraine is dominated by manufactured goods. Nearly half of the EU exports to Ukraine in 2007 were machinery and vehicles and a further quarter were other manufactured articles. A quite similar structure can be seen in imports: unspecified manufactured articles accounted for two fifths followed by a crude metal for a further fifth. At the more detailed level, the main EU exports to Ukraine in 2007 were medicine, motor vehicles and mobile phones, while the main imports were iron and steel products, as well as sunflower seed oil, ferro-nickel, iron ores and oil. Among the EU27 Members States, Germany (5.9 bn Euro or 26% of EU exports) was the largest exporter, followed by Poland (4.1 bn or 18%). Italy (2.4 bn or 19%) was the largest importer followed by Bulgaria (1.6 bn or 13%) and Germany (1.3 bn or 11%). The largest surpluses in trade with Ukraine in 2007 were observed in Germany (+ 4.6 bn Euro) and Poland (+2.8 bn Euro) while Bulgaria scored the highest deficit ( -1.4 bn Euro).

To sum it up, it should be said that Ukraine has always been seen as an important but uneasy to deal with political partner of the European Union. According to observers this is due to such factors as unwillingness of the EU to expand to the post-Soviet space, poor performance of Ukrainian economy, lack of democracy (during the 1990s) or internal instability. On 22 July 2008, it was announced that a "Stabilisation and Association" – type agreement would be signed between Ukraine and the EU on 8 September 2008 in Evian. Talks on a free trade agreement between Ukraine and the European Union started on 18 February 2008 between the Ukrainian government and the European Commissioner Peter Mandelson. On December 16, 2009 the European Commission President Jose Manuel Barroso stated "our Ukrainian friends need to do more if they want us to help them more." He also stated that "enlargement is not possible in the current situation." So there is a lot of work to be done for Ukraine to join the European Union. The first step in this direction may be institutionalization mechanism of accession of Ukraine to the relevant foreign policy decisions and statements by the EU and the next part is the right to vote in the appropriate forums of the European Union. Ukrainian diplomacy has to use more actively the selective approach according to European Union member countries, promoting the growth of engagement of political elites and citizens, and thus forming a strong pro-Ukrainian support.