Ukraine Open for Free Trade

Ukraine Open for Free Trade

Ukraine: Key Facts Area:

Location:

603,500 square Kilometers, largest country within Europe

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

Trade:

2 1 Geographical center of Europe, making the country an ideal trade hub to the EU, Middle East and Asia

World Trade Organization member

3 Deep and Comprehensive Free Trade Agreement with European Union

4 Free trade: CIS, EFTA, FYROM, Georgia, Montenegro.

Finished negotiations with Canada.

On-going negotiations Israel and Turkey 2

Free Trade Agreements

Cheaper

Faster

Predictable

Agreements for OPENING new markets for goods and services 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 3

Ukraine’s Network of Free Trade Agreements 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)

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 + services + government procurement + gradual legislative approximation and economic integration with the EU Internal Market Population: combined EU-28 States approx. 500 mil

Ukraine Ukraine has concluded 16 FTAs covering a total of 45 countries

Scope: liberalization of trade in goods Total population: approx. 245 mil 4

Ukraine’s Network of Free Trade Agreements Canada Initialed on 14 July 2015 Scope: liberalization of trade in goods + government procurement

Montenegro Entry into force: 1 January 2013 Scope: liberalization of trade in goods + services Population: approx. 0.62 mil

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)

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

Scope: liberalization of trade in goods 4

Ukraine’s Network of Free Trade Agreements

EFTA States (Iceland, Liechtenstein, Norway and Switzerland) Entry into force: 1 June 2012 Scope: liberalization of trade in goods + services + government procurement Ongoing negotiations Israel and Turkey

Population: combined EFTA States approx.

13 mil

4

Benefits for Ukrainian-Based Manufacturers / Exporters Ukraine-based manufacturers enjoy increased price competitiveness in foreign markets thanks to FTAs

Tariff Concessions

Tariff Concessions for eligible exports: elimination or reduction of import tariffs

Tariff Savings

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

Cheaper Inputs

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

5

Opportunities under the DCFTA

Removal of

Market access

97%

500 million

of duties

consumers

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

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

Agriculture and food safety: gradual alignment to EU standards

Helps to increase efficiency and competitiveness of Ukraine’s industries

Improved access to third country markets through EU standards

7

INVEST UKRAINE 45 million domestic consumer base

1

2

Ukraine is open for manufacturing

3 Tap into Ukraine’s FTA network and rethink the way your company does business today

OPEN FOR MANUFACTURING 8

Thank you! www.me.gov.ua