Deep and Comprehensive Free Trade Area in the context of "Free movement of goods"

⭐ In the context of free movement of goods, a Deep and Comprehensive Free Trade Area (DCFTA) between the EU and nations like Ukraine is best characterized as…

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⭐ Core Definition: Deep and Comprehensive Free Trade Area

The Deep and Comprehensive Free Trade Areas (DCFTA) are three free trade areas established between the European Union, and Georgia, Moldova, and Ukraine respectively. The DCFTAs are part of each country's EU Association Agreement. They allow Georgia, Moldova, and Ukraine access to the European Single Market in selected sectors and grant EU investors in those sectors the same regulatory environment in the associated country as in the EU. The agreements with Moldova and Georgia have been ratified and officially entered into force in July 2016, although parts of them were already provisionally applied. The agreement with Ukraine was provisionally applied since 1 January 2016 and formally entered into force on 1 September 2017.

Unlike standard free trade areas, the DCFTA is aimed to offer the associated country the "four freedoms" of the EU Single Market: free movement of goods, services, capital, and people. Movement of people however, is in form of visa-free regime for short stay travel, while movement of workers remains within the remit of the EU Member States. The DCFTA is an "example of the integration of a Non-EEA-Member into the EU Single Market".

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In this Dossier

Deep and Comprehensive Free Trade Area in the context of European Single Market

The European single market, also known as the European internal market or the European common market, is the single market comprising mainly the 27 member states of the European Union (EU). With certain exceptions, it also comprises Iceland, Liechtenstein, Norway (through the Agreement on the European Economic Area), and Switzerland (through sectoral treaties). The single market seeks to guarantee the free movement of goods, capital, services, and people, known collectively as the four freedoms of the European Union. This is achieved through common rules and standards that all participating states are legally committed to follow.

Any potential EU accession candidates are required to make association agreements with the EU during the negotiation, which must be implemented prior to accession. In addition, through three individual agreements on a Deep and Comprehensive Free Trade Area (DCFTA) with the EU, Georgia, Moldova, and Ukraine have also been granted limited access to the single market in selected sectors. Turkey has access to the free movement of some goods via its membership in the European Union–Turkey Customs Union. The United Kingdom left the European single market on 31 December 2020. An agreement was reached between the UK Government and European Commission to align Northern Ireland on rules for goods with the European single market, to maintain an open border on the island of Ireland.

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Deep and Comprehensive Free Trade Area in the context of European Union–Ukraine Association Agreement

The European Union–Ukraine Association Agreement is a European Union Association Agreement between the European Union (EU), the European Atomic Energy Community (Euratom), Ukraine and the EU's 28 member states at the time (which are separate parties in addition to the EU and Euratom). It establishes a political and economic association between the parties. The agreement entered into force on 1 September 2017; previously parts had been provisionally applied. The parties committed to co-operate and converge economic policy, legislation, as well as regulation across a broad range of areas, including equal rights for workers, steps towards visa-free movement of people, the exchange of information and staff in the area of justice, the modernisation of Ukraine's energy infrastructure and access to the European Investment Bank (EIB). The parties committed to regular summit meetings and meetings among ministers, other officials and experts. The agreement furthermore establishes a Deep and Comprehensive Free Trade Area between the parties.

The agreement commits Ukraine to economic, judicial and financial reforms to converge its policies and legislation to those of the European Union. Ukraine commits to gradually conform to EU technical and consumer standards. The EU agrees to provide Ukraine with political and financial support, access to research and knowledge, and preferential access to EU markets. The agreement commits both parties to promote a gradual convergence toward the EU's Common Security and Defence Policy and European Defence Agency policies.

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