(2)

In view of the economic reform efforts undertaken by Ukraine, and in order to support the development of closer economic relations with the European Union, it is appropriate to increase the trade flows concerning the import of certain agricultural products and to grant concessions in the form of autonomous trade measures in selected industrial products in line with the acceleration of the elimination of customs duties on trade between the European Union and Ukraine.

(2)

With a view to enhancing the economic and political reform efforts undertaken by Ukraine, and in order to support and accelerate the development of closer economic relations with the Union, it is appropriate and necessary to increase the trade flows concerning the import of certain agricultural products and to grant concessions in the form of autonomous trade measures in selected industrial products in line with the acceleration of the elimination of customs duties on trade between the Union and Ukraine.

(3)

The autonomous trade measures would be granted in the form of zero-tariff quotas for products listed in Annexes I and II in addition to the preferential tariff-rate quotas set out in the Agreement, and the partial or full removal of import duties on industrial products listed in Annex III;

(3)

After the publication by the Commission of its analysis on the potential impact of this Regulation, which should consider the potential final beneficiaries of the autonomous trade measures contained in this Regulation and focus particularly on small and medium-sized producers in Ukraine, the autonomous trade measures should be granted for products that are assessed to be beneficial in light of that analysis. Those autonomous trade measures should take the form of zero-tariff quotas for products listed in Annexes I and II in addition to the preferential tariff-rate quotas set out in the Association Agreement, and the partial or full removal of import duties on industrial products listed in Annex III.

(4)

In order to prevent any risk of fraud, the entitlement to benefit from the additional zero-tariff quotas should be conditional on the compliance by Ukraine with the relevant rules of origin of products concerned and the procedures related thereto as well as involvement in close administrative cooperation with the European Union as provided for by the Agreement;

(4)

In order to prevent any risk of fraud, the entitlement to benefit from the additional zero-tariff quotas for products listed in Annexes I and II and the partial or full removal of import duties on industrial products listed in Annex III should be conditional on the compliance by Ukraine with all the relevant conditions for obtaining benefits under the Association Agreement, including the rules of origin of products concerned and the procedures related thereto as well as involvement in close administrative cooperation with the Union as provided for by that Agreement.

(9)

Article 2 of the Association Agreement provides that the respect for democratic principles, human rights and fundamental freedoms and respect for the principle of the rule of law, constitute essential elements of that Agreement. It is appropriate to introduce the possibility to temporarily suspend the preferences in case of failure to respect the fundamental principles of human rights, democracy and the rule of law by Ukraine .

(9)

Articles 2 and 3 of the Association Agreement provide that respect for democratic principles, human rights, and fundamental freedoms and the principle of the rule of law, as well as efforts to combat corruption and organised crime, and measures to promote sustainable development and effective multilateralism, constitute essential elements of relations with Ukraine, which are governed by that Agreement. It is appropriate to introduce the possibility to temporarily suspend the preferences in the case of failure by Ukraine to respect the general principles of the Association Agreement , as has been done in other association agreements signed by the Union .

(9a)

The Commission’s annual report on the implementation of the Deep and Comprehensive Free Trade Agreement should include a detailed assessment of the implementation of the temporary autonomous trade measures provided for in this Regulation.

(a)

compliance with the rules of origin of products and the procedures related thereto as provided for in the Association Agreement, and notably in Protocol I concerning the definition of the concept of ‘originating products’ and methods of administrative co-operation, and in Protocol II on mutual administrative assistance in customs matters;

(a)

compliance with the rules of origin of products and the procedures related thereto as provided for in the Association Agreement, and notably in Protocol I concerning the definition of the concept of ‘originating products’ and methods of administrative co-operation, and in Protocol II on mutual administrative assistance in customs matters; as regards products manufactured in, or shipped from, territory not under the effective control of the Government of Ukraine, the submission of a movement certificate EUR.1, as referred to in Article 16(1)(a) of Protocol I to the Association Agreement, which shall be issued by the customs authorities of the Government of Ukraine, after having carried out an inspection of the exporter’s accounts at the exporter’s premises and any other checks considered appropriate, in accordance with Article 17(5) and Article 33 of that Protocol, including assessing whether there are reasonable grounds to suspect that economic operators benefiting from the temporary autonomous trade measures are undermining the fight against corruption or are engaged in illegal economic activities;

(b)

abstention by Ukraine from introducing new duties or charges having equivalent effect and new quantitative restrictions or measures having equivalent effect for imports originating in the Union or from increasing existing levels of duties or charges or from introducing any other restrictions from the day of the entry into force of this Regulation;

(b)

abstention by Ukraine from introducing new duties or charges having equivalent effect and new quantitative restrictions or measures having equivalent effect for imports originating in the Union or from increasing existing levels of duties or charges or from introducing any other restrictions , including discriminatory internal administrative measures, from the day of the entry into force of this Regulation;

(c)

respect for democratic principles, human rights and fundamental freedoms and respect for the principle of the rule of law provided for in Article 2 of the Association Agreement.

(c)

respect for democratic principles, human rights and fundamental freedoms and respect for the principle of the rule of law as well as continued and sustained efforts with regard to the fight against corruption and illegal activities provided for in Articles 2, 3 and 22 of the Association Agreement.

(ca)

continued respect for obligations to cooperate on matters related to employment, social policy and equal opportunities in accordance with Chapter 13 of Title IV (Trade and Sustainable Development) and Chapter 21 of Title V (Cooperation on employment, social policy and equal opportunities) of the Association Agreement, and the goals set out in Article 420 thereof.