Threat to EU deal with Ukraine could affect imports

December 5, 2013

European carmakers will be hoping that political tensions in Ukraine don’t jeopardise the proposed trade deal between that country and the European Union, which promises to all but remove duties on vehicle imports to the country as well as get rid of the controversial utilisation fee. The deal was to have been signed last Friday but Ukraine withdrew and has postponed a final decision on the matter until next summer. Ukranian carmakers, meanwhile, are fearful of a crisis for domestic production should they be forced to compete with European rivals, with one stating that they would need support in the form of subsidies following any eventual signing.