(b) analyse jointly economic issues of mutual interest, including economic policy measures and the instruments for implementing them, such as methods for economic forecasting and elaboration of strategic policy documents, with a view to strengthening Ukraine's policy-making in line with EU principles and practices;
(c) exchange expertise in the sphere of macro-economy;
(d) cooperation will also include exchange of information concerning the principles and functioning of the European Economic and Monetary Union (EMU).
Article 345.
A regular dialogue will take place on the issues covered by Chapter 2 of Title V (Economic and Sector Co-operation) of this Agreement.
Chapter 3. Management of Public Finances: Budget Policy, Internal Control and External Audit.
Article 346.
Cooperation in the field of management of public finances shall aim at ensuring the development of budget policy and sound systems of public internal control and external audit, on the basis of international stan- dards, and which are compatible with the fundamental principles of accountability, transparency, economy, efficiency and effectiveness.
Article 347.
The Parties shall exchange information, experience, best practice and take other actions, in particular on the following:
1. In the area of budget policy: (a) development of a medium-term budget forecast/planning system;
(b) improvement of programme-targeted approaches in the budget process and analysis of the efficiency and effectiveness of the implementation of budget programmes;
(c) improvement in the exchange of information and experience on planning and execution of the budget and on public debt.
2. In the area of external audit:
- implementation of the International Organisation of Supreme Audit Institutions (INTOSAI) standards and methods as well as exchange of best practices of the EU in the field of extemal control and audit of public finances, paying particular attention to the independence of the relevant bodies of the Parties;
3. In the area of public internal financial control:
- further developing the public internal financial control system through harmonisation with internationally-agreed standards (Institute of Internal Auditors (ILA), International Federation of Accountants (IFAC), INTOSAI) and methodologies, as well as EU best practice for internal control and internal audit in state bodies;
4. In the area of the fight against fraud:
- improvement of methods aimed at combating and preventing fraud and corruption in the area covered by Chapter 3 of Title V (Economic and Sector Co-operation) of this Agreement, including cooperation between relevant administrative bodies.
Article 348.
A regular dialogue will take place on the issues covered by Chapter 3 of Title V (Economic and Sector Co-operation) of this Agreement.
Chapter 4. Taxation
Article 349.
The Parties shall cooperate to enhance good governance in the tax area, with a view to the further improvement of economic relations, trade, investment and fair competition.
Article 350.
With reference to Article 349 of this Agreement, the Parties recognise and commit themselves to implementing the principles of good governance in the tax area, i. the principles of transparency, exchange of information and fair tax competition, as subscribed to by Member States at EU level. To that end, without prejudice to EU and
Member States competences, the Parties will improve international co- operation in the tax area, facilitate the collection of legitimate tax revenues, and develop measures for the effective implementation of the abovementioned principles.
Article 351.
The Parties shall also enhance and strengthen their cooperation aimed at the improvement and development of Ukraine's tax system and adminis- tration, including the enhancement of collection and control capacity, with a specific focus on Value Added Tax (VAT) refund procedures, to avoid accumulation of arrears, ensure effective tax collection and reinforce the fight against tax fraud and tax avoidance. The Parties shall strive to enhance cooperation and sharing of experiences in combating tax fraud, in particular carousel fraud.
Article 352.
The Parties shall develop their cooperation and harmonise policies in counteracting and fighting fraud and smuggling of excisable products. This cooperation will include, inter alia, the gradual approximation of excise rates on tobacco products, as far as possible, taking into account the constraints of the regional context, including through a dialogue at regional level and in line with the World Health Organisation Framework Convention on Tobacco Control of 2003. To this end, the Parties will look to strengthen their cooperation within the regional context.
Article 353.
Gradual approximation to the taxation structure as laid down in the EU acquis shall be carried out in accordance with Annex XXVIII to this Agreement.
Article 354.
A regular dialogue will take place on the issues covered by Chapter 4 of Title V (Economic and Sector Co-operation) of this Agreement.
Chapter 5. Statistics
Article 355.
The Parties shall develop and strengthen their cooperation on statistical issues, thereby contributing to the long-term objective of providing timely, internationally comparable and reliable statistical data. It is expected that a sustainable, efficient and professionally independent national statistical system shall produce information relevant to citizens, businesses and decision-makers in Ukraine and in the EU, thus enabling them to take informed decisions. The national statistical system should respect the UN Fundamental Principles of Official Statistics, taking into account the EU acquis, in statistics including the European Statistics Code of Practice, in order to harmonise the national statistical system with the European norms and standards. The acquis in statistics is set out in the annually updated Statistical Requirements Compendium, which is considered by the Parties as annexed to this Agreement (Annex XXIX).
Article 356.
Cooperation shall aim at:
(a) further strengthening the capacity of the national statistical system, focusing on a sound legal basis, adequate data and metadata dissemination policy and user-friendliness;
(b) gradual approximation of the Ukrainian statistical system with the European Statistical System;
(c) fine-tuning of data provision to the EU, taking into account the application of relevant international and European methodologies, including classifications;
(d) enhancing the professional and management capacity of the national statistical staff to facilitate the application of EU statistical standards and to contribute to the development of the Ukrainian statistical system;
(e) exchanging experience between the Parties on the development of statistical know-how;
(f) promoting total quality management of all statistical production processes and dissemination.
Article 357.
The Parties shall cooperate within the framework of the European Statistical System, in which Eurostat is the EU statistical authority. Such cooperation shall focus, inter alia, on the areas of:
(a) population statistics, including censuses;
(b) agricultural statistics, including agricultural censuses and environ- ment statistics;
(c) business statistics, including business registers and the use of administrative sources for statistical purposes;
(d) energy, including balances;
(e) national accounts;
(f) foreign trade statistics;
(g) regional statistics;
(h) total quality management of all statistical production processes and dissemination.
Article 358.
The Parties shall, inter alia, exchange information and expertise, and shall develop their cooperation, taking into account the already accumulated experience in reforming the statistical system within the framework of various assistance programmes. Efforts shall be directed towards further gradual approximation to the EU acquis in statistics on the basis of the national strategy for the development of the Ukrainian statistical system, while taking into account the development of the European Statistical System. In the statistical data production process, emphasis will be placed on further development of sample surveys, while taking into account the need to reduce the response burden. The data shall be relevant to the designing and monitoring of policies in all key areas of social and economic life.
Article 359.
A regular dialogue shall take place on the issues covered by Chapter 5 of Title V (Economic and Sector Co-operation) of this Agreement. To the extent possible, the activities undertaken within the European Statistical System should be open to Ukrainian participation under the normal participation rules for third countries.
Chapter 6. Environment
Article 360.
The Parties shall develop and strengthen their cooperation on environmental issues, thereby contributing to the long-term objective of sustainable development and green economy. It is expected that enhanced environmental protection will bring benefits to citizens and businesses in Ukraine and in the EU, including through improved public health, preserved natural resources, increased economic and environmental efficiency, integration of environment into other policy areas, and higher production as a result of modern technologies. Cooperation shall be conducted in the best interests of the Parties on the basis of equality and mutual benefit while also taking into account inter- dependence existing between the Parties in the field of environmental protection and related multilateral agreements.
Article 361.
Cooperation shall aim at preserving, protecting, improving, and rehabilitating the quality of the environment, protecting human health, prudent and rational utilisation of natural resources and promoting measures at international level to deal with regional or global environmental problems, inter alia in the areas of:
(a) climate change;
(b) environmental governance and horizontal issues, including education and training, and access to environmental information and decision-making processes;
(c) air quality;
(d) water quality and water resource management, including marine environment;
(e) waste and resource management;
(f) nature protection, including conservation and protection of bio and landscape diversity (eco-networks);
(g) industrial pollution and industrial hazards;
(h) chemicals;
(i) genetically modified organisms, including in the field of agriculture;
(j) noise pollution;
(k) civil protection, including natural and man-made hazards;
(l) urban environment;
(m) environmental fees.
Article 362.
1. The Parties shall, inter alia:
(a) exchange information and expertise;
(b) implement joint research activities and exchange of information on cleaner technologies;
(c) plan the handling of disasters and other emergency situations;
(d) implement joint activities at regional and international level, including with regard to multilateral environmental agreements ratified by the Parties and joint activities in the framework of relevant agencies as appropriate.
2. The Parties shall pay special attention to transboundary issues.
Article 363.
Gradual approximation of Ukrainian legislation to EU law and policy on environment shall proceed in accordance with Annex XXX to this Agreement.
Article 364.
Cooperation in the civil protection sector shall take place through the implementation of specific agreements in this field concluded between the Parties according to the respective powers and competences of the EU and its Member States and in accordance with the legal procedures of each Party. It shall aim inter alia at:
(a) facilitating mutual assistance in case of emergencies;
(b) exchanging on a 24-hour basis early warnings and updated information on cross-border emergencies, including requests for and offers of assistance;
(c) assessment of the environmental impact of disasters;
(d) inviting experts to specific technical workshops and symposia on civil protection issues;
(e) inviting, on a case-by-case basis, observers to specific exercises and training activities organised by the EU and/or Ukraine;
(f) strengthening existing cooperation on the most effective use of available civil protection capabilities.
Article 365.
The cooperation shall cover, inter alia, the following objectives:
(a) development of an overall strategy on environment, covering planned institutional reforms (with timetables) for ensuring implementation and enforcement of environmental legislation; division of competence for the environmental administration at national, regional and municipal levels; procedures for decision- making and the implementation of decisions; procedures for promotion of integration of environment into other policy areas; identification of the necessary human and financial resources and a review mechanism;
(b) development of sector strategies on air quality; water quality and resource management, including marine environment; waste and resource management; nature protection; industrial pollution and industrial hazards and chemicals, including clearly defined time- tables and milestones for implementation, administrative responsibilities as well as financing strategies for investments in infrastructure and technology;
(c) development and implementation of a policy on climate change, in particular as listed in Annex XXXI to this Agreement.
Article 366.
A regular dialogue will take place on the issues covered by Chapter 6 of Title V (Economic and Sector Co-operation) of this Agreement.
Chapter 7. Transport
Article 367.
The Parties shall:
(a) expand and strengthen their transport cooperation in order to contribute to the development of sustainable transport systems;
(b) promote efficient, safe and secure transport operations as well as intermodality and interoperability of transport systems;
(c) endeavour to enhance the main transport links between their terri- tories.
Article 368.
1. Cooperation between the Parties shall aim to facilitate the restruc- turing and modernisation of Ukraine's transport sector and gradual approximation towards operating standards and policies comparable to those in the EU, in particular by implementing the measures set out in Annex XXXII to this Agreement, without prejudice to obligations stemming from specific transport agreements concluded between the Parties. Implementation of the above-mentioned measures shall not contravene the rights and obligations of the Parties under international agreements to which they are parties, or their participation in inter- national organisations.
2. Cooperation shall also aim at improving the movement of passengers and goods, increasing fluidity of transport flows between Ukraine, the EU and third countries in the region, by removing administrative, technical, cross-border and other obstacles, improving transport networks and upgrading the infrastructure in particular on the main axes connecting the Parties. This cooperation shall include actions to facilitate border-crossings.
3. Cooperation shall include information exchange and joint activ- ities:
- at regional level, in particular taking into consideration and integrating progress achieved under various regional transport cooperation arrangements such as the Eastern Partnership Transport Panel, the Transport Corridor Europe-Caucasus-Asia (TRACECA), the Baku process and other transport initiatives;
- at international level, including with regard to international transport organisations and international agreements and conventions ratified by the Parties, in the framework of the various transport agencies of the EU.
Article 369.
This cooperation shall cover, inter alia, the following areas:
(a) development of a sustainable national transport policy covering all modes of transport, particularly with a view to ensuring efficient, safe and secure transport systems and promoting the integration of transport considerations into other policy areas;
(b) development of sector strategies in light of the national transport policy (including legal requirements for the upgrading of technical equipment and transport fleets to meet the highest international standards) for road, rail, inland waterway, aviation, maritime transport and intermodality, including timetables and milestones for implementation, administrative responsibilities and financing plans;
(c) development of the multimodal transport network connected to the Trans European Transport Network (TEN-T) and improvement of infrastructure policy in order to better identify and evaluate infra- structure projects in the various modes of transport. Development of funding strategies focusing on maintenance, capacity constraints and missing link infrastructure as well as activating and promoting the participation of the private sector in transport projects as set out in Annex XXXII to this Agreement;
(d) accession to relevant international transport organisations and agreements including procedures for ensuring strict implementation and effective enforcement of international transport agreements and conventions;
(e) scientific and technical cooperation and exchange of information for the development and improvement of technologies, such as intel- ligent transport systems;
(f) promotion of the use of intelligent transport systems and information technology in managing and operating all modes of transport as well as supporting intermodality and cooperation in the use of space systems and commercial applications facilitating transport.
Article 370.
A regular dialogue will take place on the issues covered by Chapter 7 of Title V (Economic and Sector Co-operation) of this Agreement.
Chapter 8. Space
Article 371.
1. The Parties shall promote mutually beneficial cooperation on civil space research and space applications, in particular in the following areas:
(a) global navigation satellite systems;
(b) earth observation and global monitoring;
(c) space science and exploration;
(d) applied space technologies, including launcher and propulsion tech- nology.
2. The Parties will encourage and promote the exchange of experience on space policy, administration and legal aspects, as well as on industrial restructuring and the commercialisation of space technologies.
Article 372.
1. Cooperation will include the exchange of information on each other's policies and programmes and the relevant opportunities for co-operation and joint projects, including participation of Ukrainian entities in the relevant Space and Transport themes of the next EU Framework Programme for Research and Innovation Horizon 2020.
2. The Parties will encourage and support exchanges of scientists and the creation of relevant networks.
3. Cooperation could also cover the exchange of experience on the management of space research and science institutions, as well as the development of an environment conducive to research and the application of new technologies and adequate protection of the relevant intellectual, industrial and commercial property rights.
Article 373.
A regular dialogue will take place on the issues covered by Chapter 8 of Title V (Economic and Sector Co-operation) of this Agreement including as appropriate coordination and cooperation with the European Space Agency on these and other relevant topics.
Chapter 9. Cooperation In Science and Technology
Article 374.
The Parties shall develop and strengthen their scientific and technological cooperation in order to contribute both to scientific development itself, and to reinforce their scientific potential for contributing to the resolution of national and global challenges. The Parties shall endeavour to contribute to progress in acquiring scientific and technological knowledge relevant to sustainable economic development, by strengthening their research capacities and human potential. The sharing and pooling of scientific knowledge will contribute to the competitiveness of the Parties, by increasing the ability of their economies to generate and use knowledge to commercialise new products and services. Finally, the Parties will develop their scientific potential in order to fulfil their global responsibilities and commitments in areas such as health-related issues, environmental protection including climate change and other global challenges.
Article 375.
1. Such cooperation shall take into account the current formal framework for cooperation established by the Agreement on Cooperation in Science and Technology between the European Community and Ukraine, as well as the Ukrainian objective of gradual approximation to EU policy and legislation on science and technology.
2. Cooperation between the Parties shall aim at facilitating the involvement of Ukraine in the European Research Area.
3. Such cooperation shall assist Ukraine in reforming and reorganising its science management system and research institutions (including boosting its capacity for research and technological development), in order to support the development of a competitive economy and knowledge society.
Article 376.
Cooperation shall take place particularly through:
(a) exchange of information on each other's science and technology policies;
(b) participation in the next EU Framework Programme for Research and Innovation Horizon 2020;
(c) joint implementation of scientific programmes and research activ- ities;