Торгівля між Україною та Німеччиною

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

IMF estimates growth in 2016

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 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

EFTA STATES UNION EUROPEAN

CANADA

(Iceland, Liechtenstein, (28 member states) Norway And Switzerland) Signed on 11 July 2016

UKRAINE ONGOING NEGOTIATIONS Entry into force: provisional - 1 January Entry into force: 1 June 2012 Scope: liberalization of tradeSOVIET in goods 2016.+Unilateral government preferences for UA exports FORMER UNION REPUBLICS Israel Turkey Ukraine hasand concluded 16 FTAs covering a Entry into force: 1 January 2013

MONTENEGRO MACEDONIA

procurement (CIS FTA And Bilateral applied (pending ratification by all EU Member Trade Agreements) total of 45 countries Scope: liberalization of trade in goods + services + States) Scope: liberalization of trade in goods SYSTEMS + GENERALIZED OF government procurement Scope: liberalization of trade in goods (first Population: approx. Armenia, 35 mil Azerbaijan, Belarus, Kazakhstan, Kyrgyzstan, services PREFERENCES (GSP) agreement concluded by Ukraine with a non-CIS Moldova, Russian Federation, Tajikistan, Scope: liberalization of tradeTurkmenistan, in goods + Population: combined EFTA States approx. 13 mil state) Uzbekistan Population: approx. 0.62 mil European Union(*), services + government procurement + gradual Canada, Japan, Turkey and Entry into force: 5 July 2001

Population: approx. 2.1 mil

legislative approximation and economic Entry into force: CIS FTA 20 September 2012, bilateral integration (*) GSP arrangement will be terminatedwith in the EU Internal Market treaties entered into force between 1994 and 2006 two years after the entry into force of the

United States

EU – UA DCFTA (1 January 2016)

Population: combined EU-28 States approx.

Scope: liberalization of trade in goods Scope: liberalization of trade in goods500 mil Total population: approx. 245 mil

OPPORTUNITIES UNDER EU-UA DCFTA

Removal of

% 97 of duties

Market access

million

500

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% 5

UA–EU DCFTA OPPORTUNITIES

SPHERES OF APPLICATION :

Trade liberalization for goods and services Opening of the Public Procurements markets Gradual approximation of the legislation and economic integration with the EU internal market EU GENERALIZED SYSTEM OF PREFERENCES

EU GSP will be applied for the UA goods till 31.12.2017

The certificate EUR.1 is the basis for the preferential movement of the goods (to be provided free of charge by the State Fiscal Service of Ukraine) 38 000 EUR.1 certificates have been issued (January – September 2016) The Authorized Exporter’s Status is applied from JAN 2016 (around 100 exporters are approved)

IMPLEMENTATION OF EU-UA DCFTA

Action plan of implementation the DCFTA

for 2016-2019 approved National standardization body established

Strategy for technical regulation system development till 2020 approved Competent authority on SPS and

consumer protection established Comprehensive SPS strategy on implementation approved The National Public Procurement Strategy approved

1 2 3

Dialogue on further trade liberalization

Initiation of multi-cluster dialogue UA - EU cooperation on the Industrial Policy

UA accession to the Regional Convention on Pan-EuroMediterranean preferential rules of origin

FTA AGREEMENTS AND ACCESSION TO PAN-EURO-MED CONVENTION FTA AGREEMENTS

AGREEMENTS OF NEW GENERATION :

EFTA (CHE, ISL, NOR, LIE) Montenegro EU (28)

ADVANTAGES of FTAs

Opening new markets Reduction of production costs due to elimination of customs duties Reduction of time by simplifying of customs and transit procedures

CANADA (not in force, at stage of internal procedures necessary for ratification)

AGREEMENTS PRESERVING COOPERATION among FORMER USSR MEMBERS

CIS Negotiations with:

Israel Turkey

Favorable and stable business environment for investment attraction and new technologies ADVANTAGES OF ACCESSION TO REGIONAL CONVENTION PAN-EURO-MED

Potential to increase access of domestic products to the markets of 42 countries and territories Uniform / standardized rules of origin New possibilities of cooperation in trade between the parties, including through the involvement to regional value added chains

CAN-UA FTA: OVERVIEW

Trade in goods

Rules of origin

Trade related cooperation

Technical barriers to trade

Dispute settlement

Environment

Trade facilitation

Government procurement

Sanitary and phytosanitary measures

Labour

Intellectual property

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

EXPORT OF #UA GOODS TO #DE (JAN-JUL 2016 )

EXPORT OF #UA GOODS TO #EU

UKRAINE-EU DCFTA: THE TRADE RESULTS

JAN – AUG 2016

CHANGES

TURNOVER

EXPORT

IMPORT

BALANCE

TURNOVER

EXPORT

IMPORT

19 083

8 600

10 483

-1 883

4,2%

4,3%

4,1%

Food product and beverages

2 404

1 582

822

760

25,7%

34,4%

11,9%

Industrial goods

8 401

4 776

3 625

1 151

1,3%

-4,0%

9,3%

Fuel and oil

1 463

250

1 213

-963

-47,2%

-5,8%

-51,6%

Capital goods (expect transport) parts and equipment

2 644

465

2 179

-1 714

38,7%

0,3%

51,0%

Vehicles and parts

1 649

756

892

-136

28,8%

3,0%

63,7%

Consumer goods

2 508

767

1 741

-973

18,4%

22,8%

16,5%

14

4

10,5

-7

-58,0%

-27,8%

-63,6%

TOTAL

Other goods

(the customs’ operational information)

EU-UA: TRQ UTILIZATION

100% UTILIZED

MORE THAN 80% UTILIZED

0.1-50% UTILIZED

Poultry meat and poultry meat preparations

Poultry meat and poultry meat preparations (additional)

BY UKRAINE (24 OF 40) Honey Barley groats and meal

Butter and dairy spreads Processed tomatoes

Barley, flour and pellets

Milk powder

Grape and Apple juice

Sweetcorn

Sugars

Other Sugars

Maize, flour and pellets

Ethanol

Oats

Bran, shaps and residues Sugar processed products

Common wheat, flours, and pellets

Starches

Malt and wheat gluten

Other

BY EU (3 OF 5) Poultry meat and poultry meat preparations

Sugars

Pork meat (main and additional) Poultry meat and poultry meat preparations (additional)

EXPORT OF #UA GOODS TO #DE

IMPORT OF #DE GOODS TO #UA

#UKRAINE

OPEN for #MANUFATURING

#FREE TRADE #INVESTMENTS