EU grants Ukraine market economy status
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Thursday, 01 December 2005
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By Tom Warner in Odessa and agencies
Financial Times - London, England, UK
The European Union said on Thursday it would accord Ukraine market economy status, in a move that recognises Ukraines reform programme and will improve the countrys trade relations with the 25-nation bloc.
The agreement, which will help Ukraines steel producers gain access to European markets without being subjected to anti-dumping measures, was announced at a meeting in Kiev between Tony Blair, the British prime minister, Jose Manuel Barroso the European commission president, Viktor Yushchenko, president of Ukraine, and other EU and Ukrainian leaders.
The EU leaders were in Kiev for the launch of an ambitious EU border control programme to curb smuggling across Ukraines border with the separatist region of Transdniestria in Moldova.
The EU held a press conference in Odessa on Wednesday announcing its border assistance mission for Bam which will place 50 border guards and customs officials from EU countries.
The border is particularly unruly and sensitive because most of the Moldovan side is controlled by Transdniestria, an unrecognised breakaway state backed by Russia. One of the EU monitors five bases will be the last Ukrainian stop on the railway leading to a Russian military base in Transdniestria.
With the EU set to take in Romania in its next planned expansion and Moldova set to become an EU neighbour, Brussels is taking an increasing interest in the region.
Some western European governments, particularly France, had reservations about stepping into a region they consider Russias back yard but worries about a possible hole in the EUs eastern frontier overcame their objections.
The monitors wont be able to carry out the inspections themselves or enter Transdniestrian territory. If they see problems their only recourse will be to "discuss European ways of doing things," as a EU official put it, with the Ukrainian or Moldovian officials whose work they are monitoring.
But the EU believes the mission could help towards a settlement of the Transdniestrian conflict by discouraging anyone who might want to preserve the region as a smuggling haven.
The rise to power in Ukraine of Mr Yushchenko, who is striving to bring his country into the EU, has also changed the regions dynamics.
To drive that point home he is hosting a summit of "Baltic-Black Sea-Caspian" region leaders Friday where presidents from Romania, Georgia and Baltic states, but not Russia and its ally Belarus, will discuss how to strengthen democracy.
Mr Yushchenko has tried to bring Moldovas and Transdniestrian's leaders together to agree on a plan for elections in the breakaway region monitored by European observers, so far without success.
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