Ukraine sees no need for rush on EU free trade

Published 10/06/2010, 12:32 PM
Updated 10/06/2010, 12:36 PM

* Ukraine, EU to hold summit in late November

* PM hints free trade agreement still way off signing

KIEV, Oct 6 (Reuters) - Ukraine is working hard with the European Union to prepare a free trade agreement but it is not clear if it will be ready for signing at a summit in late November, Ukraine's prime minister said on Wednesday.

Speaking to journalists in Helsinki, Mykola Azarov said he would travel to Brussels on October 13-14 to have further talks with the bloc on a possible free trade zone which forms the core of a future Association agreement between the sides.

"It is not important when this is signed. What is important is the nature of the document," he said in televised comments. "Let's not rush forward too quickly. The question of our trade cooperation is not a simple one," he said.

The two sides are slated to hold a summit on November 22.

Last weekend President Viktor Yanukovich made downbeat comments on the free trade idea, saying his ex-Soviet republic, which was badly hurt by the global financial crisis, would require billions of euros to compensate for immediate market losses.

Momentum for bilateral trade deals with the bloc though hit a high this week during a summit of EU and Asian leaders in Brussels.

The EU signed a major trade accord with South Korea, launched talks with Malaysia and said it wanted free-trade agreements with Singapore, Vietnam, Thailand and possibly Japan.

With world trade talks stalled at the World Trade Organization, the EU has been focusing on bilateral deals, particularly with fast-growing economies.

Agreement on a free trade zone with Ukraine, a major exporter of grain, steel and chemicals, would form the core of a broader Association agreement.

Talks have been going on for two and a half years.

Ukraine needs access to the lucrative European market to help local industries upgrade obsolete technologies.

(Additional reporting by Juliane von Reppert-Bismarck in Brussels and Natalya Zinets in Kiev) (Writing by Richard Balmforth; editing by Ralph Boulton)

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