Analysis of the draft law:
Analysis of the Draft Law of Ukraine on the Ratification of Decision Lo 2/2024
Essence of the draft law: The draft law provides for the ratification of Decision Lo 2/2024 of the Joint Committee of the Regional Convention on pan-Euro-Mediterranean preferential rules of origin. This decision amends the previous decision (Le 1/2023) to include transitional provisions to the amendments to the Regional Convention, which are to apply from January 1, 2025. Ratification of this decision will allow Ukraine to adapt its legislation to the updated rules of origin of goods in the pan-Euro-Mediterranean region. The purpose of this step is to facilitate trade and economic cooperation with the participating countries of the convention. The law formalizes Ukraine’s international obligations in this area.
Structure and main provisions:
- Article 1: Contains a provision on the ratification of Decision Lo 2/2024, indicates the date of the decision (December 12, 2024 in Brussels) and the moment it enters into force (from the date of adoption). The text of Decision Lo 2/2024 is attached to the text of the law.
- Article 2: Defines the date of entry into force of this Law – from the day following the day of its publication.
Given the provided text, it is difficult to talk about changes compared to previous versions, as there is no information about such versions. However, it can be assumed that this project is the next step in the process of implementing the amendments to the Regional Convention referred to in Decision Lo 2/2024.
Main provisions relevant to different groups:
- For legislators: The need to ensure compliance of national legislation with Ukraine’s international obligations in the field of preferential rules of origin. It is important to consider the possible impact of changes on trade relations and the country’s economy.
- For experts: Analysis of the compliance of the amendments to the Regional Convention with the interests of Ukraine, assessment of possible risks and benefits for domestic producers and exporters. It is necessary to understand the impact of the transitional provisions on the practical application of the new rules.
- For business: Familiarization with the new rules of origin of goods that will apply from January 1, 2025, and their impact on export-import operations. It is important to adapt business processes to the new requirements to obtain preferences.
- For citizens: Indirect impact through changes in prices for imported goods and the availability of products, which may be related to the new trade rules.
Analysis of the explanatory note:
Analysis of the Draft Law of Ukraine “On Ratification of Decision L 2/2024…”
Essence of the draft law
The draft law aims to ratify the Decision of the Joint Committee of the Regional Convention on pan-Euro-Mediterranean preferential rules of origin. This is necessary to introduce transitional provisions to the amendments to the convention, which are to apply from January 1, 2025, ensuring a smooth transition to the new rules of origin of goods.
Reasons and necessity of adopting the draft law
According to the authors of the explanatory note, the adoption of this law is necessary to maintain existing trade flows and avoid the rupture of diagonal cumulation. This is important because the implementation of the updated convention requires the completion of domestic procedures in many participating countries. Without transitional provisions, the transition process may cause complications in international trade.
Main consequences of the draft law
The most important consequences that may be of interest to legislators, experts, business, and citizens:
- For legislators: Ensuring the fulfillment of Ukraine’s international obligations and avoiding potential trade complications.
- For experts: Creating legal conditions for adaptation to the new rules of origin of goods, which will contribute to the stability of trade relations.
- For business: Providing an opportunity to gradually switch to the new rules of origin by the end of 2025, while maintaining the possibility of diagonal cumulation. This will allow enterprises to choose the most favorable rules, depending on their supply chains.
- For citizens: Maintaining the stability of prices and the availability of goods, as avoiding trade complications has a positive impact on the economic situation in the country.
In general, the ratification of this decision will allow Ukraine to support existing supply chains and promote further integration into regional and global economic processes.
Analysis of other documents:
Analysis of documents regarding the ratification of Decision LH 2/2024
From the analysis of the provided documents, it becomes obvious that the authors fully support the Draft Law of Ukraine “On Ratification of Decision LH 2/2024”. This is confirmed by the fact that the draft was submitted by the President of Ukraine, agreed with key ministries and departments, and submitted to the Verkhovna Rada of Ukraine with a proposal to adopt it as a basis.
Main provisions of the documents to pay attention to:
- Purpose of the draft law: Ratification of Decision No. 2/2024 of the Joint Committee of the Regional Convention on pan-Euro-Mediterranean preferential rules of origin. This decision amends the previous decision (No. 1/2023) to include transitional provisions to the amendments to the rules of origin, which will begin to apply from January 1, 2025.
- Coordination with ministries: It is important that the draft law was agreed with the Ministry of Foreign Affairs, the Ministry of Economy, the Ministry of Justice, the Ministry of Finance, the Ministry of Digital Transformation and the State Customs Service. This indicates a comprehensive assessment of the impact of the law on various spheres.
- Transitional provisions: A key aspect is the inclusion of transitional provisions. This means that the draft law takes into account the need to adapt businesses and government bodies to the new rules, which is especially important in times of economic instability.
- International obligations: Ratification of this decision is part of Ukraine’s fulfillment of its international obligations under the Regional Convention on pan-Euro-Mediterranean preferential rules of origin.
- Resolution of the Verkhovna Rada: It is proposed to adopt the draft law as a basis and instruct the relevant committee to finalize it taking into account comments and suggestions.
Why this is important for different groups:
- For legislators: It is necessary to pay attention to the compliance of the draft law with the national interests and international obligations of Ukraine. It is important to assess the economic consequences of ratification and the transitional provisions for business.
- For experts: It is necessary to analyze the impact of changes on the rules of origin of goods, their compliance with European standards and possible risks for Ukrainian producers.
- For business: It is important to understand how changes in the rules of origin will affect export-import operations, customs procedures and the competitiveness of products. Transitional provisions should ensure a smooth transition to the new rules.
- For citizens: Ratification of this decision may affect prices for imported goods and the availability of certain products. It is important that the state ensures transparency and information about the changes.
Ratification of this decision is an important step for Ukraine’s integration into the European economic space and harmonization of legislation with international standards.
