OREANDA-NEWS. November 21, 2011. The Free Trade Agreement between Ukraine and the Government of Montenegro has been signed by the First Vice Prime Minister - Minister of Economic Development and Trade of Ukraine Andriy Klyuyev and the Minister of Economy of Montenegro Vladimir Kavarich, in Kyiv.

"The Free Trade Agreement action between Ukraine and Montenegro should activate seriously our trade and economic cooperation," Andriy Klyuyev has declared after the signing ceremony. He expressed confidence that the agreement would have a positive impact on the economy of both countries.

According to Andriy Klyuyev, among promising areas of bilateral trade and economic cooperation which are interested Ukraine - housing and industrial building, participation in the modernization of railway and shipbuilding industry of Montenegro, the supply of city and intercity buses, food supply and organization of their production in Montenegro. Also the Ukrainian side is interested in the expanding military-technical cooperation.

The First Vice Prime Minister has stated that Ukraine conducts active foreign economic policy - moving toward creation of a free trade area with European Union, carries on negotiations on the free trade with Turkey, the agreement on FTA of the CIS countries has been signed one month ago, there are similar negotiations with other countries at different stages.

The Government Commissioner for European Integration of Ukraine, Chairman of the Delegation of Ukraine to participate in negotiations under the World Trade Organization Valeriy Pyatnitsky and the Minister of Economy of Montenegro Vladimir Kavarich also signed a bilateral protocol on access to goods and services markets within the frameworks of the accession of Montenegro to the World Trade Organization.

 Under forecasts of the Ministry of Economic Development and Trade of Ukraine, it is expected that as a result of free trade area creation between Ukraine and Montenegro, to increase imports to Ukraine will not be leading position, so that bilateral trade is inherent lack of competition between Ukrainian and Montenegrin producers of so-called "sensitive" products to Ukraine.

Among the main consequences of the Agreement, the Ukrainian experts note not only increase export of Ukrainian goods and services in the market of Montenegro, but also the expansion of markets for Ukrainian products in the region. It is predicted - as consolidation has traditional export items of Ukrainian companies in the market of Montenegro, which is important in the global financial crisis, and expands the structure of Ukrainian exports due to new positions. Besides the Ukrainian side expects the best usage of own transit advantages through the tangible benefits of increased trade flows and services passing through the territory of the state in the context of integration of the Ukrainian economy to the EU.

During 2010-2011, there have been held three Ukrainian-Montenegrin business forums, the delegations of 10 sister cities have exchanged visits.