INVEST UKRAINE
Nataliya MYKOLSKA Deputy Minister of Economic Development and Trade – Trade Representative of Ukraine
REASONS TO INVEST IN UKRAINE FTA’s:
AREA & LOCATION: 603,500 sq. km, largest country within Europe
Deep and Comprehensive FTA with EU
Geographical center of Europe, making the country an ideal trade hub to the EU, Middle East and Asia
Free trade with CIS*, EFTA, Georgia, Montenegro, Macedonia
Borders Poland, Romania, Slovakia, Hungary and Moldova, Belarus and Russia, and via the Black Sea, Bulgaria, Georgia and Turkey
GROUND FLOOR OPPORTUNITY: Bold structural reforms unlock growth potential incl. robust deregulation
Large consumption gaps = significant upside, at 10-50% CEE peers’ level in most categories
FTA signed with Canada
On-going negotiations Israel and Turkey
ATTRACTIVE ENTRY VALUATIONS:
COMPETITIVE ADVANTAGES:
Valuations discounted significantly vs. peer countries
Leading globally in IT outsourcing and Agribusiness
FDI key priority for Ukraine
Highly skilled workers at costcompetitive wages Low-cost, rapid logistics to EU, Middle East, Asia
IMF estimates growth in 2016 Most EU-hubs within 2 truck days away
FTAs’ BENEFITS FOR UA-BASED MANUFACTURERS UNDER FTAs UA EXPORTS ENJOY INCREASED PRICE COMPETITIVENESS IN FOREIGN MARKETS
CHEAPER Substantial elimination of all customs duties. Making UA imports more competitive
Tariff savings
FASTER
PREDICTABLE
Goods movement facilitation via customs and setting common rules on technical and sanitary standards
WITHOUT FTA:
Importers of UA exports pay regular import duty (e.g. 10%)
Cheaper inputs
More foreseeable policy environment (incl. FDIs, IPRs, competition rules and public procurement)
WITH FTA:
Importers pay no import duty or “preferential” lower duties (e.g. 2%)
UA-based manufacturers benefit from cheaper inputs imported without (or with lower) import duties and under predictable conditions from FTA partners - in addition to having access to inputs locally available
#UA NETWORK OF FREE TRADE AGREEMENTS
CANADA
EFTA STATES EUROPEAN UNION
Signed on 11 July 2016
(Iceland, Liechtenstein, Norway And (28 member states) Switzerland)
Entry into force: provisional - 1 January UKRAINE MONTENEGRO ONGOING MACEDONIA Entry into force: 1 June 2012 2016. preferences for UA exports Scope: liberalizationFORMER of trade in goods +Unilateral government SOVIET UNION REPUBLICS NEGOTIATIONS applied (pending ratification by all EU Member procurement
(CIS FTA And Bilateral Trade Agreements)
Scope: of trade in 2013 goods + services States) Ukraine has1 concluded 16 FTAs covering+a Entryliberalization into force: January Entry into force: 5 July 2001 Israel and Turkey totalprocurement ofOF 45 countries Population: approx. 35 government milAzerbaijan, GENERALIZED SYSTEMS Armenia, Belarus, Kazakhstan, Kyrgyzstan, Scope: liberalization of trade in goods + Scope: liberalization in goods Scope: liberalization of tradeofintrade goods (first + PREFERENCES Moldova,(GSP) Russian Federation, Tajikistan, Turkmenistan, services Population: combined EFTA States approx. 13 mil services + government procurement + gradual agreement concluded by Ukraine with a non-CIS Uzbekistan legislative approximation and economic Canada, European Union(*), state) Japan, Turkeyapprox. and Population: 0.62 mil integration with the EU Internal Entry into force: CIS FTA 20 September 2012, Market bilateral United States Population: approx. 2.1 mil treaties entered into force between 1994 and 2006 (*) GSP arrangement will be terminated in combined EU-28 States approx. two years after the entryPopulation: into force of the Scope: liberalization of trade in goods EU – UA DCFTA (1 January 2016) 500 mil Total population: Scope: liberalization of trade in goodsapprox. 245 mil
OPPORTUNITIES UNDER EU-UA DCFTA
Market access
500
million
consumers
Removal of
97% of duties
Ukraine and the EU signed the Deep and Comprehensive Free Trade Area in 2014, as part of the broader Association Agreement Provisional application of DCFTA starting from 1 January 2016. Trade liberalization for goods and services, access to public procurements markets
Removal of 97% of duties on UA goods and reduction of the average tariff on UA exports from 7.6% to 0.5%
IMPLEMENTATION OF EU-UA DCFTA
DCFTA implementation action plan for 2016-2019 approved Standardization & SPS / consumer
protection bodies established National strategies for:
• • • UA ORIGIN
technical regulation development 2020 SPS national public procurement system
1 2
Dialogue on further trade liberalization / additional trade preferences
Initiation of UA - EU multi-cluster dialogue on industrial policy cooperation
REGIONAL PAN-EURO-MED CONVENTION ON PREFERENTIAL RULES OF Potential to increase access of UA exports to 42 countries markets Uniform / standardized rules of origin New opportunities for business in involvement to regional & global value added chains
#CAN - #UA FTA: HIGHLIGHTS
1 3 5
Preferential market access for originating goods
Access to government procurement
Transparent terms of trade
2 4 6
New market opportunities for traders
Intellectual property rights protection
Self declaration principle
#CAN - #UA FTA: ACCESS TO CAN MARKET
AGRI All agri goods except for over quota for
INDUSTRIAL
0%
All industrial goods except
Special terms 0% for in-quota amounts: Live poultry, poultry inlc. frozen and fat Diary products: milk, cream, yogurt, butter
Automobiles
Eggs and egg product Cheeses
Sugar
0% in 7 Y
EXPORT OF #UA GOODS TO #EU
#UA EXPORTS TO #LT: GOODS
#LT – OPPORTUNITIES FOR #UAEXPORTS Preferential access for goods, services & access government procurement Entry point – gate to EU market via distributors Opportunities for ICT exports & joint projects
Joint projects & ventures, investments Daily flights, same time zone, multilingual talent pool, super-positive #UA perception EU-funded programs: COSME, HORIZON, EU4Business
tel.: +380 (44) 200 44 38 +380 (67) 377 68 65
of. 307, 12/2 Hrushevskoho str. 01008 Kyiv
Ukraine e-mail: exportcouncil@me.gov.ua
@exportpromotionoffice
#UKRAINE
OPEN for
#MANUFATURING #FREE TRADE
#INVESTMENTS