Ukraine Open for Free Trade

Area:

603,500 square

Kilometers,

largest country

within Europe

Location:

Borders Poland, Romania,

Slovakia, Hungary and Moldova in

the west, with Belarus and Russia

to north and east, and via the

Black Sea, Bulgaria,

Georgia and Turkey

to the south

Free trade: CIS, EFTA,

FYROM,

Georgia, Montenegro.

Finished negotiations with

Canada.

On-going negotiations Israel

and Turkey

Trade: 4

3

Deep and

Comprehensive

Free Trade Agreement

with

European Union

2

World

Trade

Organization

member

1

Geographical center of Europe,

making the country an ideal trade

hub to the EU, Middle East and

Asia

Ukraine: Key Facts

2

Make trade CHEAPER - by eliminating substantially all customs duties

Make trade FASTER - by facilitating goods transit through customs

and setting common rules on technical and sanitary standards

Create a more PREDICTABLE policy environment – including in areas

that affect trade such as FDIs, IPRs, competition rules and public

procurement

Predictable Faster Cheaper

Free Trade Agreements

Agreements for OPENING new markets for goods and services

3

Ukraine

Ukraine has concluded 16 FTAs

covering a total of 45 countries

European Union (28 Member States)

Entry into force: provisional - 1

January 2016. Unilateral preferences

for UA exports applied (pending

ratification by all EU Member States)

Scope: liberalization of trade in goods +

services + government procurement +

gradual legislative approximation and

economic integration with the EU

Internal Market

Population: combined EU-28 States

approx. 500 mil

Former Soviet Union Republics (CIS FTA and

bilateral trade agreements)

Armenia, Azerbaijan, Belarus, Kazakhstan,

Kyrgyzstan, Moldova, Russian Federation,

Tajikistan, Turkmenistan, Uzbekistan

Entry into force: CIS FTA 20 September 2012,

bilateral treaties entered into force between 1994

and 2006

Scope: liberalization of trade in goods

Total population: approx. 245 mil

Ukraine’s Network of Free Trade Agreements

4

Macedonia

Entry into force: 5 July 2001

Scope: liberalization of trade in goods

(first agreement concluded by Ukraine with a

non-CIS state)

Population: approx. 2.1 mil

Montenegro

Entry into force: 1 January 2013

Scope: liberalization of trade in goods +

services

Population: approx. 0.62 mil

Canada

Initialed on 14 July 2015

Scope: liberalization of trade in goods +

government procurement

Population: approx. 35 mil

Generalized Systems of Preferences

(GSP)

Canada, European Union(*), Japan, Turkey

and United States

(*) GSP arrangement will be terminated

after the entry into force of the EU – UA

DCFTA on 1 January 2016)

Scope: liberalization of trade in goods

Ukraine’s Network of Free Trade Agreements

4

EFTA States (Iceland, Liechtenstein,

Norway and Switzerland)

Entry into force: 1 June 2012

Scope: liberalization of trade in goods +

services + government procurement

Population: combined EFTA States approx.

13 mil Ongoing negotiations

Israel and Turkey

Ukraine’s Network of Free Trade Agreements

4

Ukraine-based manufacturers can benefit from cheaper

inputs that can be imported without (or with lower)

import duties and under predictable conditions from FTA

partners - in addition to having access to inputs locally

available

Benefits for Ukrainian-Based

Manufacturers / Exporters

Tariff

Concessions

Tariff

Savings

Cheaper

Inputs

Ukraine-based manufacturers enjoy increased price competitiveness

in foreign markets thanks to FTAs

Tariff Concessions for eligible exports: elimination or

reduction of import tariffs

Tariff Savings. Without FTA importers of Ukrainian

exports pay most favored nation tariff (e.g. 10%). With

FTA, importers pay “preferential” lower FTA rates for the

same goods (e.g. 2%). Making Ukrainian exports more

competitive

5

Market access

500 million

consumers

Removal of

97% of duties

Opportunities under the DCFTA

Ukraine and the EU signed the Deep and Comprehensive Free Trade Area

on 27 June 2014, as part of the broader Association Agreement

Provisional application of DCFTA starting from 1 January 2016.

Unilateral preferences for Ukrainian goods applied

Removal of 97% of duties on Ukrainian goods and reduction of the

average tariff on Ukrainian exports from 7.6% to 0.5% 6

Agriculture and

food safety:

gradual alignment

to EU standards

Helps

to increase

efficiency

and

competitiveness

of Ukraine’s

industries

Opportunities under the DCFTA

Seven years to adopt

EU standards -

opportunities to invest

in modernization

Products certified in

Ukraine will be

treated equally on

the EU market

Improved access

to third country

markets through

EU standards

7

INVEST UKRAINE

45 million domestic

consumer base

2 1

OPEN FOR MANUFACTURING

Tap into Ukraine’s FTA network

and rethink

the way your company

does business today

Ukraine is open

for manufacturing

3

8

Thank you!

www.me.gov.ua