Analysis of the possible content, economic impact and feasibility of the EU and Ukraine making a Free Trade Agreement. The team first reviewed available economic evidence on the likely impact of ‘simple’ or ‘deep’ free trade, from which it was apparent that the former would have little impact, whereas the latter could be a major and indispensable component of a strategy to get Ukraine onto a sustainable high growth path. The ‘deep’ free trade scenario was then developed in detail, in which the content overlaps clearly with what the European Neighbourhood Policy calls ‘a stake in the internal market’. A major effort was then deployed into defining how far the ‘deep free trade’ package should go in approximation with the EU acquis, taking into account where Ukraine has got to so far in the post-communist transition. This approach was applied especially in major service sectors such as financial services, transport, energy, telecommunications, and well as in horizontal policies for competition, corporate governance, environment etc. The authors sought to develop what could be a template for European Neighbourhood Policy as regards optimal and feasible acquis compliance.