ZPP Newsletter
Warsaw, 9 December 2024
Joint white paper on the future of trade relations between the European Union and Ukraine
On December 4th the Union of Entrepreneurs and Employers (ZPP) of Poland and the Federation of Employers of Ukraine (FEU) have released a joint white paper on the future of trade relations between the European Union and Ukraine.
The white paper outlines a strategic vision of the role of Polish-Ukrainian economic relations, as well as key trade issues between Ukraine and the European Union.
In particular, it focuses on Autonomous Trade Measures (ATMs) and their likely expiration in 2025. The authors have emphasized that negotiations around ATMs extension and Deep and Comprehensive Free Trade Area (DCFTA) amendments, should begin immediately and expressed hope for an active role of Poland and Denmark during their presidencies of the Council of the EU.
As the EU approaches a pivotal decision regarding ATMs and the DCFTA, the white paper offers actionable recommendations to ensure sustained growth and stability in trade relations. We have identified two potential paths: the extension of ATMs with enhanced safeguards; and a selective expiration of ATMs coupled with strategic DCFTA amendments to support critical Ukrainian exports, the authors outline in the white paper.
In the first scenario the white paper advocates for an extension of ATMs with Enhanced Safeguards. The safeguards introduced in June 2024 ATMs extension have largely proven effective at regulating trade flows and minimizing disruption to EU producers. The possible effects on price stability and resilience of EU producers are further discussed in the white paper.
The second scenario includes a selective ATMs expiration, combined with DCFTA amendments. The authors warn that a sudden elimination of ATMs without a transitional framework could increase expenses and reduce profit margins (…), while restricted access to the European market could deter foreign investment in Ukraine. Should the ATMs not be renewed, the white paper deems the DCFTA amendments vital to ensure continued European support for Ukraine and highlights important sectoral particularities regarding the amendments.
Lastly, the authors suggest increasing investment in Transport and Rail Infrastructure for Strategic Expansion, implementing a Real-Time Trade Monitoring and Adjustment System, strengthening Agricultural Collaboration and Technology transfer. The ZPP and FUE also proposed engaging Leading Ukrainian and Polish Social partners in trade discussions, emphasized the importance of mediation by business associations, and offered their services to the governments of Ukraine and Poland. The initiatives would provide further support for Ukraine and increase regional competitiveness and resilience.
Poland’s Union of Entrepreneurs and Employers
Union of Entrepreneurs and Employers (ZPP) is the fastest-growing employer organization in Poland. The organization brings together 18 regional organizations and 22 trade organizations. They gather 21,089 companies (as of 31st December 2023) with a total of 772,272 employees. As a member of the Social Dialogue Council in Poland, ZPP uses its influence to promote free market, fair competition, legal stability, and economic transparency. ZPP is represented in Brussels through its Representative Office, European Enterprise Alliance membership, and SME Connect membership. The union has two representatives in the European Economic and Social Committee.
***
Federation of Employers of Ukraine
The Federation of Employers of Ukraine (FEU) is the most influential association of Ukrainian businesses. Founded in 2002, the Federation has successfully represented and protected the interests of businesses in Ukraine and internationally for 20 years. At present, the FEU unites more than 140 sectoral and regional organizations of employers representing the most critical sectors of the economy of Ukraine, such as machine building, metallurgy, automotive, aerospace and defense industries, agriculture, chemical industry, IT, media industry, energy, medical and microbiological industry, construction, transport and infrastructure, retail and logistics, light and food industries, tourism, utilities, services sector. The Federation represents over 8,000 enterprises, collectively employing nearly 3 million people and generating about 70 % of the national GDP.
See more: White Paper: The Future of EU-Ukraine Trade Relations
