The FTA agreement within the CIS is of strategic importance for Ukraine and will work effectively for the benefit of all the Commonwealth members, secretary of the National Security and Defense Council of Ukraine Andriy Kluiyev said, ForUm learned from the NSDCU press service.

According to him, Ukrainian producers are expanding their opportunities for access to the CIS market through the mechanisms stipulated in the agreement. The NSDC secretary reminded that the CIS market is the largest sale market for Ukrainian goods. In 2011, it had 42% share of foreign trade turnover of Ukraine, i.e. 72 billion U.S. dollars.

Secretary of the Ukrainian Security Council also noted that the CIS market is especially important for Ukraine as the lion's share of Ukrainian products with high added value, machinery mainly, is being delivered to the Commonwealth states today.

Kluiyev noted that participation in the FTA agreement within the CIS is already producing results for Ukraine. He reminded that after the ratification of the agreement, the Russian government amended the agreement on the supply of tubular products to the countries of the Customs Union (Russia, Belarus, Kazakhstan). This will have a positive impact and will give significant results - 50 thousand people employed in the industry, will have jobs and the country will receive at least $ 400 million foreign exchange earnings, the NSDC secretary emphasized.

He reminded that, according to the experts, the FTA agreement within the CIS can promote in the medium term an increase in industrial production of Ukraine by 3.5-4% and GDP growth by additional 2.5% per year. Acceleration of growth in a number of industries would increase employment, income growth and the state budget, Kluiyev said.

The NSDC secretary also noted that the CIS is a promising and quite financially reliable market, the home to 200 million consumers and the growth rate of GDP of the Commonwealth countries is several times higher than the growth rates of the EU economies. At the same time, he stressed that participation in the FTA agreement within the CIS does not prevent Ukraine from creating free trade area with the EU. The agreements do not contradict each other, he added.

Kluiyev said that Ukraine is also consulting and drafting free trade agreements with Canada, Israel, Morocco and other prospective business partners. According to him, the conclusion of free trade agreements with a number of new countries will improve access to important markets of goods, eliminating a number of tariff barriers.
In addition, Kluiyev said that there will be eliminated non-tariff barriers for access of Ukrainian goods to major markets through the mutual recognition of technical regulations, sanitary and phytosanitary standards. It will also improve market access services.

Secretary of the National Security Council said that immediately after the entry into force of the FTA agreement with the CIS in goods, Ukraine plans to initiate the preparation of the FTA agreement in services.



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