The European Union’s enlargement has been viewed rather ambiguously in Ukraine. While some see more positive aspects in it, since the zone of wellbeing is coming closer to our borders, others, on the contrary, are threatening the creation of new boundaries on the European continent. At the same time, while six months or a year ago anxieties about the negative impact of EU enlargement were mostly of abstract character, now they have assumed more concrete meaning. According to various calculations, as a result of the renunciation by the EU membership candidates of their agreements on free trade zones with Ukraine, it is expected that Ukrainian enterprises will suffer losses of at least $300 million. What is the EU stand toward this? When can Kyiv count on obtaining market economy status? How does Brussels view the relationship between Ukraine and the EU in the near future? The answers to these and other questions were given to The Day ’s journalists last Wednesday by head of the European Commission Delegation in Ukraine, Ambassador Extraordinary and Plenipotentiary Norbert JUSTEN.
“This year will see the tenth anniversary of work by the European Commission Delegation in Ukraine. In your view, have Ukraine and the EU come closer to each other during these years? What the delegation view as its successes and its failures?”
“We have now had ten years of the existence of our delegation in Kyiv; this is a little bit less than the existence of independent Ukraine. Ukraine is a young country, and so our relations are also new. In the beginning there was certainly not much knowledge in Ukraine about the EU and in the EU about Ukraine. In West Europe, and in the European Union in particular, Ukraine was known not as an independent country but as a region that was a part of another country, the Soviet Union. Over the years of our cooperation here our delegation has contributed to making Ukraine better known within the European Union. The other side is that the knowledge about the EU in Ukraine is also increasing. There is a lot of public talk about Ukraine’s European integration, though there is still a lot to be done. For this purpose intensive work is being conducted on all levels within the framework of the Partnership and Cooperation Agreement. Meetings take place regularly, from the Ukraine-EU summit to experts’ and working groups meetings. On our part, we have organized a number of projects on technical assistance, which have also allowed bringing people together, sending EU experts to Ukraine, sharing our experience, which you could use for the development of your country. This has also allowed to increase the number of mutual visits by delegations of businessmen, state servants, student exchanges, etc. As far as our failures are concerned, of course, when you have a large number of initiatives, some of them fail; this is only natural. Ten years ago when Ukraine became independent it had a history that completely different from histories of the European Union states. Therefore, it is normal that it will take some time to increase mutual understanding. But we are confident that the trend is toward better understanding, and we are coming closer.
“What obstacles do you see in Ukraine’s way to meet the European standards?”
“When we speak about the ways towards European standards, we mean Ukraine adopting the European Union’s legislation, standards, and regulations. There are no obstacles on this road; the way is open. We are working together very closely in this area. We have a number of projects to achieve this adoption of European standards. We understand the importance of such harmonization, since it embraces all sectors of the economy. We are particularly working on a number of priorities, because you cannot do everything at once. Speaking about European standards in terms of political life and democracy, it is also up to Ukraine to do what is necessary to achieve this. You simply need to implement them in everyday life. It is clear that this transition is a process, which cannot be completed overnight. But it is important that the trend is positive and Ukraine moves toward its final objective.”
“What are the obstacles preventing the European Union from granting Ukraine the market economy status?”
“Given a country market economy status is a decision made on the basis of a technical assessment, which is made on the basis of information received from the applicant country. We have recently received new information from Ukraine. Now we are working on it and will make a decision as soon as possible. The European Commission will consider the latest data and either ask for more information or announce that it can make a decision. Incidentally, even today Ukrainian companies can apply for market economy status on an individual basis.
“Where there any such applications filed?”
“We have a few companies that have already received this status.”
“How realistic is it to expect that Ukraine will be granted market economy status before the presidential elections?”
“It isn’t possible for me to answer this question. Supposedly the decision won’t take too long, but this will depend on what is in the information package we received.”
“Obviously you have heard about numerous forecasts on the negative consequences of the EU enlargement for Ukraine. The forecasted losses for Ukrainian companies vary from $300 to 600 million. Does the EU plan to cooperate with Ukraine to minimize these negative effects?”
“We are convinced that the consequences will be not negative but positive for Ukraine. There are a number of elements that support our optimism. For example, the customs tariffs for the new member states will be reduced by 5%. Quotas will be cancelled except for metallurgical products. There will be economic growth in the new member states, which will have a positive effect on neighboring states, including Ukraine. Moreover, Ukraine will become a close neighbor of a huge common market of 450 million customers with one set of rules and standards, which will make trade with them easier for Ukraine. We expect that the transition will not be traumatic. The new member states are already adapting their technical norms for some time, so Ukrainian companies are already used to these developments. We don’t think that May 1, 2004, the EU market will be blocked for Ukrainian products. We are ready to speak with Ukraine’s partners about technical problems that might arise, but we are not speaking about any compensation — this is something that we cannot accept.
“In other words, do you consider that Ukrainian government’s forecasts and calculations on the negative consequences of the enlargement are groundless?”
“I don’t know details of these forecasts, but I suspect they are based on a black-and-white situation. They see it like that: today we export 100 million tons of steel to Poland and tomorrow zero. But in reality this is not going to happen.
“However, you must have heard the statements by Deputy Foreign Minister Oleksandr Chaly and Economy Minister Valery Khoroshkovsky on this issue. Minister Khoroshkovsky mentioned steel quotas in his interview with The Day”
“Yes, we do have steel quotas, but we don’t have a steel agreement. So we suggested to sign a new bilateral agreement and made a draft. Of course the quotas in the new agreement will take into account the new member states.”
“Another question is one of the key projects in the Ukraine- EU cooperation, the Odesa-Brody pipeline. Does the European Commission’s stand toward its direction remain unchanged? What are the realistic prospects? How far is the European Commission prepared to go to support the forces inside Ukraine that stand for the project’s European orientation?”
“We repeatedly characterized the Odesa-Brody project as underlining the European orientation of Ukraine. It has strategic interest for us as well since it would help diversify oil supplies to the EU. It will also secure the safety of oil supplies, and we won’t have to worry about supplies by sea. But this is a Ukrainian pipeline, and it is for Ukraine to decide how to use it. We have made our position known, particularly, at a number of meetings on high level.
“You probably follow closely the situation concerning the Single Economic Space (SES) created by Ukraine, Russia, Kazakhstan, and Belarus. In your view, will the SES jeopardize Ukraine’s European integration?”
“In this context we welcome any close regional cooperation. Free trade areas are something that completely agrees with our political views. We have no problem with this. However, if it goes beyond a customs union, this would change the situation. Then we will have to view this situation within the context of Ukraine’s other obligation, in part, in terms of its movement toward the WTO.”
“Do you agree that the SES has become possible not in the least due to the EU’s insufficient attention to Kyiv? A certain Euro-skepticism is rather widespread in Ukraine. They say that the EU made no statements on any concrete terms for upgrading the relationship’s status; that it is absorbed with its own problems connected with the enlargement. What would you reply to these skeptics?”
“I think it is not true to say that we have turned away from Ukraine. We have even the Partnership and Cooperation Agreement that implies the possibility to go to a free trade area. We have an agreement allowing to bring the Ukrainian economy closer to adopting EU legislation and standards. This spring we have come up with the Wider Europe — Neighborhood initiative, which intensifies and brings to a higher quality the prospects of our cooperation. During his visit to Ukraine Commissar of the European Commission Gunter Verheugen indicated that this concept would offer the widest possible options for Ukraine’s participation in the EU common market. I consider this as very attractive and ambitious prospects for our cooperation and in no way as turning away from Ukraine. It is true that we have a lot to do with our internal reforms, enlargement, adopting the new Constitution, etc. But at the same time, as the EU comes closer to Ukraine, we are very concerned that we do not have a division, a new barrier between countries in Europe.
“Do you follow the process of Ukraine’s Constitutional reform? In your opinion, how could one option or another of the political reform reflect upon Ukraine’s approaching the EU? Is there any connection?”
“Of course, we closely follow the discussion of the political reform in Ukraine. However, political reform in a country is this country’s prerogative. As a general comment I can only say that the more profound the reform is, the better it is that it is supported by as large as possible part of the population and parliament.”
“Will the result of the 2004 presidential elections matter for Ukraine-EU relations?”
“It is up to Ukrainian people to decide. What matters for us is that the elections are held in accordance with European standards.”
