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Sunday, October 23, 2016

Ukraine has lost the chance of a change of Association with the EU in their favor

The Netherlands first recognized that can not be ignored in the referendum expressed the will of their citizens regarding the agreement on Association of Ukraine with the EU. This means that is so important for Kiev’s European integration is clearly not going to be what you want to see the current Ukrainian authorities. Ukraine and the EU was in a stalemate.

The Hague “will not ratify the Association agreement with Ukraine, if not will find legal solutions,” according to the April referendum, which, in particular, may require changes in the text of the document, said the Prime Minister presiding in the EU of the Netherlands mark Rutte on the first day of the EU summit.

“The Association both worked, and will continue to work. It just cannot be developed on, she stands up in a stupor”

“We need to find answers to people’s concerns. If we can’t do it, then no, we don’t ratify”, – quotes its TASS. He stressed that he would do everything possible to find a legal solution. “I don’t know if this could be changes in the text or a solution that will not require modifications. It will be difficult to find a solution, but we must try,” said he.

“I raised issues that preceded the referendum, and now we are working on a legally binding decision that would have removed the concerns expressed by the opponents of the Association”, – said the Prime Minister. According to him, “the main regulatory binding by answering the concern expressed in the debate in the Netherlands”, RIA “Novosti”.

“If I fail to achieve this, and I talked about this with colleagues, we do not sign. It is also clear. We will try to find a solution, it will be difficult, we have little chance that we will achieve that, but we have to try. Because if we do not sign, the 27 member countries will agree on something, what the Netherlands will not participate,” said Dutch Prime Minister.

The head of the European Council, Donald Tusk, in turn, also said that the Netherlands will make every effort to find a way out of the situation.

A referendum on the ratification of the Association agreement between the EU and Ukraine was held in the Netherlands April 6. Against ratification voted 2.5 million people, or 61% of voters. The turnout exceeded the required 30% for a referendum to be held.

Shortly after the will of the Dutch people, the Dutch Parliament rejected the proposal of the socialists to abolish the ratification of the Association agreement with Ukraine. The government could have time to consider the possibility of amending the agreement with Kiev.

After this, the EU considered de facto in force the agreement on Association of Ukraine, despite a referendum in the Netherlands. “The 27 members of the EU have ratified the Association agreement with Ukraine. Netherlands pre-ratified. Therefore, we can say that the agreement previously entered into force,” – said the European Commissioner for European neighbourhood policy and negotiations to expand Johannes Hahn. Cooperation between Ukraine and the EU, according to him, even in the current environment.

In fact, the Netherlands for the first time acknowledged that the chances to find a solution to practically nil. This means that the country has never ratified the agreement on Association of Ukraine with the EU. Formally, this means that at any moment the agreement with the EU could be terminated.

“In accordance with the provisions of the Lisbon Treaty of 2007, the Netherlands have the right to veto the agreement on the integration of the EU with the new members. The results of the April referendum in 2016 ordered the Parliament of the Kingdom to adjust the bill on Association with Ukraine and to carry on a new vote. If EU authorities will not agree to the inclusion in the text of the agreement of the relevant amendments, the official Amsterdam, most likely, will cancel its ratification. As a result, the document will be denounced and its conditions will no longer be executed,” – said the newspaper VIEW managing partner of Kirikov Group Daniil Kirikov.

For the government of the Netherlands the results of the referendum are not binding. In this case the government votes in the EU. But if it will not take into account the opinion of citizens, then the citizens will have a lot of questions to his government, says investment Director of the company “continues to invest” Dmitry Naidenov.

In fact, after the rejection of ratification by the Netherlands of the European Union at any moment to break the action Association with Ukraine, citing the Netherlands. However, this is unlikely. Until a solution is found such under any reasons to delay the final decision.

To the Netherlands ratified the Association agreement needs to eliminate articles that permits the entry of Ukraine in the future in the EU, providing for the granting of guarantees of territorial integrity, military assistance and the introduction of a visa-free regime, said Chirico.

Ukraine is not worried

In Ukraine, for this reason not particularly worried. Even if the Netherlands will not ratify (the agreement), this does not mean that the Association will no longer work, says the newspaper VIEW Ukrainian economist Oleksandr Okhrimenko. According to him, the EU cannot break the Association unilaterally and only with the permission of Ukraine. “This should be a mutual decision,” he says.

The only problem posed by this situation, he said, is that while the Association agreement of Ukraine with the EU ratified by all countries, it is impossible to make any changes. “Even if Ukraine is now asked to increase the quota, change some section, make any changes, then do it, no way. Only after ratification by all member Ukraine or the EU have the right to make changes to the Association”, – said the expert. “For Ukraine it is frustrating because it is, of course, would very much like to increase the quota for the supply of its products to the EU,” continues Okhrimenko.

“However, the Association will continue to work. It just cannot be developed further, she stands in a stupor and all” – says Ukrainian economist.

As an example, in connection with the British exit from the EU raises the issue of its exclusion from the Association agreement of Ukraine with the EU. “This is a simple legal procedure. But due to the fact that the Netherlands has not ratified the agreement, there may be a problem. Although like nothing complicated, but to remove even one word is impossible. Lawyers will break your teeth, how to solve this puzzle,” says Okhrimenko.

But the biggest disappointment of the Ukrainian business may cause the fact that to resent a particular paragraph of the agreement now will be absolutely meaningless. However, while they asked the Brussels, only one – to increase the quota of duty-free volumes of Ukrainian goods for export to the EU). However, the EU before the referendum in the Netherlands was rebuffed Kiev, saying that did not promise immediate profits that the Association suggests the evolutionary path of development.

Deaf ears in Brussels and Kiev’s attempts to force the EU to pay compensation for damages from the rejection of doing business with Russia. After all, a free trade zone with the EU will automatically have destroyed the free trade area of Ukraine with the CIS countries.

Ukrainian business previously complained that the free trade zone in the framework of the Association with the EU was nothing more than a fiction. When it signed the Association agreement with the EU, it was about the opening of the European market for Ukrainian goods, and Vice versa. In fact, it was only the opening of the Ukrainian market for European goods unilaterally.

“No opening of markets did not happen. Europe talks about free trade zone with Ukraine, and at the same time signed a bunch of exceptions and limitations for the export of Ukrainian goods. It’s such a free trade area only in one way”, – said Yuriy Kosyuk, the owner of the largest chicken producer – “Myronivsky Hliboproduct”.

Europe has allocated very small quotas to free trade in those products, which Ukrainian business could supply in large quantity, such as honey and grain. In the end, after only the first few months of the year, the quota in almost all important categories of goods were already exhausted and Ukrainian producers still have to pay duties for importing the goods into the EU, as well as to open a free trade zone.

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