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Monday, August 21, 2017

Ukraine to ink trade agreement with EU

Ukraine is expected to sign a trade agreement with the European Union on Friday containing a framework for regulations aimed at reducing corruption and debt in the country's economy.

Previously, Viktor Yanukovych, the former president of Ukraine, backed out of signing an agreement in order to enter into a bailout agreement with Russia--a move that led to violent protests and the president's eventual ousting, International Business Times reports.

Ukraine will remove taxes on imports that would protect the country's local manufacturers, according to the deal. Additionally, 98 percent of EU tariffs would be removed, and 99 percent of Ukraine tariffs would be removed.

Ukraine would also be required to adopt EU rules on government contracting and manufacturing over the course of 10 years. The signing of the agreement could prompt Russia to cancel its free-trade privileges with Ukraine. Experts have also voiced concern that the signing of the new deal could lead to more clashes among separatists and government troops in eastern Ukraine, according to International Business Times.