Country Trading Block: Ukraine
The EU and Ukraine have provisionally applied their Deep and Comprehensive Free Trade Agreement (DCFTA) since 1 January 2016. This agreement means both sides will mutually open their markets for goods and services based on predictable and enforceable trade rules.
Small and Medium sized Enterprises (SMEs) in Ukraine can receive support from the EU's SME Flagship Initiative. This initiative allows SMEs in Ukraine, Georgia and Moldova to access approximately € 200m of EU grants. This funding adds to the new trade opportunities with the EU that have been created by DCFTA.
· Ukraine exports to the EU amounted to €13.1 bn in 2016. The main Ukraine exports are raw materials (iron, steel, mining products, agricultural products), chemical products and machinery.
· The EU exports to Ukraine amounted to over €16.5 bn in 2016. The main EU exports to Ukraine include machinery and transport equipment, chemicals, and manufactured goods.
· Total trade between the EU and Ukraine increased by 27.1 % from January to August 2017 vs January to August 2016. In that period, exports from EU to Ukraine increased by 26.6% whereas imports from EU to Ukraine increased by 27.7 %.
· The EU is a large investor in Ukraine. EU investors held investments worth around €16.1 bn in Ukraine in 2015.
In the longer term, this should support Ukraine's economic development and generate more demand for European product and services – a win-win situation.