Bilateral agreements

EU relations with Ukraine are to a large extent based on the Partnership and Co-operation Agreement (PCA) which entered into force in 1998. The agreement regulates the political, economic and cultural relations between the EU and Ukraine and is the current legal basis for the EU's bilateral trade with Ukraine. One of its main objectives is the promotion of trade and investment as well as the development of harmonious economic relations between the Parties.

The economic and trade provisions of the PCA are based on the most favoured nation (MFN) and national treatment principles; specific articles govern trade in steel products, conditions for establishment and operation of companies, approximation of legislation, intellectual property rights and trade defence instruments.

In addition, the EU has agreements with Ukraine governing trade in steel and textiles products (see above).

The PCA foresees the possibility of an EU-Ukraine Free Trade Area. As envisioned in the ENP Action Plan signed in February 2005, a review of the 1999 study on feasibility of the EU-Ukraine FTA was completed in early 2006 (Follow the link at the bottom of page to download the study).The review concluded that the option of deep FTA (i.e. ensuring not only tariff dismantling but also regulatory convergence) should be chosen for the negotiations of the future agreement. The negotiations of the FTA can be launched once Ukraine has joined WTO.