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Ukraine
The EU is Ukraine's foremost commercial partner and accounts for about one third of its external trade. The EU believes that closer economic integration (in the overall context of a political association) can be a key factor in economic growth for Ukraine.
The EU was a strong proponent for Ukrainian WTO membership, effective since 16 May 2008. Building on that membership the EU and Ukraine immediately launched negotiations for an agreement on a deep and comprehensive free trade area (DCFTA). As part of the future Association Agreement, the DCFTA is designed to deepen Ukraine's access to the European market and to encourage further European investment in Ukraine.
Ukraine's membership of the WTO in 2008 is expected to deepen an already promising economic partnership
Trade in goods
- EU exports to Ukraine 2008: €25.14 billion
- EU imports from Ukraine 2008: €14.36 billion
Ukraine 's primary exports to the EU are agricultural products, energy, chemicals, iron, and steel. EU exports to Ukraine are dominated by machinery, transport equipment, chemicals, textile and clothing, and agricultural products.
Foreign Direct Investment
- EU investment stocks in Ukraine as of 2005: €7.7 billion
FDI flows to Ukraine have been rising rapidly in the last couple of years and have the potential to sufficiently foster further economic growth in the country. From 2004 to 2005, FDI outward stocks from EU 27 countries grew by more than 400% in Ukraine.
GSP
Ukrainian exports to the EU are to a very large extent liberalised thanks to the Generalised System of Preferences (GSP) granted by the EU to Ukraine since 1993. In 2007, the GSP utilisation rate reached a rather good level of 74% of the eligible products. With € 2.2 million of GSP preferential imports to the EU, Ukraine ranks 9 th among the most effective users of the system. Preferential imports include chemicals, plant oils, minerals, base metals, machinery, and mechanical appliances.
WTO
Ukraine acceded to the WTO in May 2008. The EU has always believed that WTO membership can play a key role in supporting Ukraine's economic reform, especially in the context of a transition economy. In joining the WTO, Ukraine benefits from secure access to the markets of all WTO members and commits to providing the kind of stable trade and investment environment that will attract further trade and investment.
From WTO to new FTA
In March 2007 the EU and Ukraine launched bilateral negotiations of a new Association Agreement that will replace the present Partnership and Cooperation Agreement that dates from 1998.
The Free Trade Area (FTA) will be embedded in the new Association Agreement as an integral element alongside others, such as political, social, and sectoral co-operation. It will be the first of a new generation of deep and comprehensive FTA, covering all trade-related areas (including services, intellectual property rights, customs, public procurement, energy-related issues, competition, et cetera) and also tackling the so-called "beyond the border" obstacles through deep regulatory approximation with the trade-related EU acquis.
There have been 6 rounds of negotiation since February 2008, with an additional 3 rounds planned for the second half of 2009.
Bilateral relations
Trade relations with key trading partners
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