EU Ukraine civil society dialogue Rural areas and agriculture

Agenda A typical Brussels organisation How does that work with EU bodies? How to strengthen Ukrainian organisation? Recommendations

EU Ukraine Business Council The EU-Ukraine Business Council was established in 2005 as an independent forum for EU and Ukrainian business leaders The purpose of the Council is: To promote trade and investment between the EU and Ukraine To assist companies and organisations to develop business opportunities To promote dialogue between governments and companies, to help solve market access difficulties and overcome regulatory obstacles that hinder EU-Ukraine trade

EUUBC Members System Capital Management ( (Ukrainian steel, chemicals, media and business services conglomerate) DTEK ( (Independent Energy company) Phiolent ( ) National Agrarian Chamber of Ukraine ( Bears Food Ingredients Ltd ( Sigma Bleyzer ( First International ( Milkiland ( Pepsico ( Federation of Employers of Ukraine ( Sevastopol State Administration ( )

Council Objectives To give Ukrainian business a lobby and a “voice” in Brussels. We provide Ukrainian organisations a “business house” in Brussels and assist in establishing their representation We help members to find opportunities through regional and cross-border co-operation and research We provide policy analysis and EU regulatory advice; we also deliver communications links with the EU institutions and organise visit and contact programmes for members

Civil Society Dialogue The Council is registered as a “Lobby” on the European Commission’s voluntary register –Promise to respect code of ethics –Transparency of membership, funding –Declaration of interests Declaration of interests means automatic notification of public online consultations by the European Commission We also take part in the civil society dialogue meetings with DG Trade of the European Commission We are active participants in the Civil Society Forum of the Eastern Partnership Programme The Council is bidding with Eurochambres as a partner in a consortium to compete for the East Invest contract to be awarded under the Eastern Partnership Programme

EU Common Trade Policy 1 Agriculture and food processing industry traditionally sensitive issues both for the EU and Ukraine. Failure of the WTO multilateral deal in agriculture pushed the EU into bilateral agreements to secure its interests in this area. Ukraine’s accession to the WTO has achieved significant liberalization for the sector The agriculture sector involves many related policy areas: –Transport –Infrastructure –Storage capacity and logistics –Retailing; –Land issues –Social issues –Standards and consumer protection –Trade conditions and market liberalization

EU Common Trade Policy 2 Dialogue with civil society is a part of the decision making process in the EU Regular civil society meetings are conducted by DG Trade on wide scope of trade issues EU civil society organizations are entitled to participate in these meetings Ukrainian organizations can have this opportunity through their membership in EU organizations and can also lobby directly Latest meeting sanitary and phytosanitary issues and trade took place in October 2009, meetings on bilateral and multilateral trade policy, including agriculture are conducted regularly

Civil Society Organisations 1 Interaction with Political level - European Parliament Under Lisbon Treaty has new powers – will assent on EU-Ukraine FTA Verkhovna Rada has inter-parliamentary delegation with EP – opportunities to interact through EU organisations or through Rada Rada links also through the new Euronest European Economic and Social Committee activities. The proposal to establish an EU-Ukraine civil society joint body that would become part of the EU-Ukraine Association Agreement was adopted in autumn 2008 at the conference organized by the EESC and the National Tripartite Council of Ukraine The next discussions are to take place in the end of March in Kyiv. We recommend to agrarian organizations to be actively involved

Civil Society Organisations 2 The Association Agreement agenda and comprehensive institution capacity building programme Although agriculture is not part of a future trade deal, several related spheres, like transport, environment, sanitary and phyhtosanitary, tariffs, intellectual property rights and geographical indicators are included into the Association Agreement negotiations Agrarian organizations should ask for access to information and actively seek to be involved into the discussions on institutional reforms, especially in important sectors like dairy products

Eastern Partnership 1 The Eastern Partnership initiative: emphasis on institution capacity building and organized civil society dialogue development Joint declaration of the Prague Eastern Partnership Summit (on 7 th May 2009) states that: - “The European Union will develop Comprehensive Institution-Building Programmes individually with each partner country in order to improve their administrative capacity, including through training, technical assistance and any appropriate innovative measures.”

Eastern Partnership 2 The Eastern Partnership Civil Society Forum held its first official meeting in November 2009, working group on economic integration and convergence with EU policy adopted its recommendations, including:- “Cooperation between Chambers of Commerce, Agricultural chambers, scientific and educational institutions of the EU and EaP should be supported. EaP Business Forum held in the EU and/or the partner countries should be established in order to strengthen business interaction and to promote new partnerships.” The EUUBC actively participates in these activities, it has developed a first draft concept for an EaP Business Forum and is encouraging agricultural organizations to be better involved in the discussions and activities of the EaP Civil Society Forum to promote their ideas, share experience, exchange views and build stronger civil society organizations covering rural areas to provide real value to these processes.

FTA Provisions Future EU Ukraine deep and comprehensive FTA will need sustainable development, and establishment of bilateral civil society dialogue. Enforcement of provisions of future association agreement, including DCFTA requires active involvement of agrarian organizations: so they can understand what’s going on, take part and buy into the implementation that will be needed in practice. This will minimize the possible negative impact from liberalization and conditional integration into the EU in the agricultural sphere (meaning that Ukraine won’t benefit from CAP/Common Agricultural Policy of the EU). Ukrainian agrarian organizations should take the initiative now and work actively to be involved in the dialogue with civil society which will be established under the future DCFTA. Important to lobby for priority treatment of areas in FTA where Ukraine can win early benefit.

Recommendations Empower Agrarian organisations to access funding opportunities Strengthen the capacity of civil society organizations in agriculture and rural areas so they can be representative, and take into account the interests of members; and so they are built on membership and not politicized Decentralize power to delegate more competence to oblast and local authorities where local civil society organizations can effectively participate in dialogue at the local level Promote in parallel the social and economic aspects of civil society dialogue in rural and agricultural areas: –(1) to increase attractiveness of rural areas for younger population, create new jobs and opportunities in rural areas –(2) to integrate fully rural areas and agricultural sector in construction of complete market supply chain, to establish market conditions for bigger share of added value and profit to remain with farmers.

Funding opportunities Cross-border co-operation funds Eastern partnership programme E5P Guiding philosophy Do not look for operational subsidy, but look for opportunities to develop new activities that can strengthen the organisation, develop new services for members or revenues which will make it more sustainable

E5P A cooperation partnership between Ukraine and a number of international partners. Purpose: To promote investments and reforms, which increase energy efficiency and environmental protection in key areas, notably in the municipal sector. Heart of Partnership is the E5P Fund of grant money managed by the European Bank for Reconstruction and Development (EBRD) E5P Fund resources can be used for: - investment grants to soften up financial package for investments - technical assistance grants to prepare projects and/or increase management capacity of beneficiaries When a participating IFI has worked up a proposal together with a Ukrainian partner, the IFI can apply to use the resources in the E5P Fund to finance part of the costs.

First priority: investments and technical assistance measures in the field of energy efficiency, with strong initial focus on municipal sector – in particular district heating projects Secondary priority: investments and technical assistance measures in the field of environmental protection, with strong initial focus on municipal sector Opportunity: NACU can help to develop flagship project that can then be cascaded to different regions to develop effient use of biomass from cereal crop waste What type of projects qualify for funding?

The application is discussed in E5P Steering Group, where all participating IFIs, the Ukrainian Government and the European Commission are members. If Steering Group agrees, the application is sent to main E5P governing body, the so-called E5P Assembly of Contributors, where all donors are represented and have voting power in relation to their financial contributions to the E5P Fund. However, no operation in Ukraine will receive funding, if the Government of Ukraine does not agree with the proposal. In case of a positive decision by the Assembly, the grant from the E5P Fund will be handled by the IFI which put forward the application. How does E5P work

Contacts for Business Council Anna Zvolikevych EUUBC 103 Avenue de l’Armée B1040 Brussels Belgium Tel: Tel: Olga Revina EUUBC 19B Reytarska Street Kyiv Ukraine Tel: Tel:

Questions?

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