November 10

KIEV, 18th October 2016TRADE AND ECONOMIC OFFICE OF SPAIN IN KIEV

Spanish Economy for UkraineJaime Ramón Fernández SánchezHead of Economic and Commercial OfficeEmbassy of Spain in Ukraine

ICEX ESPAÑA EXPORTACIÓN E INVERSIONES

Opportunities for Ukrainian producers of Agricultural products in Spain.

TOP 5 items Ukrainian companies must know before entering Spanish market


Spain: a highly internationalized economy

GDP comparison of major economic regions, USD billions

Germany: 3,358

UK: 2,849

Spain: 1,200

France: 2,422

Italy: 1,816

EU28: 16,220

USA:17,947

Mexico: 1,144

Canada: 1,552

NAFTA:20,644

China:10,983

Brazil: 1,773

Russia: 1,325

India: 2,091

BRICs: 16,171

NIE-4: 2,503

ASEAN-5: 2,034

Asia: 15,571

Japan:4,123

Australia: 1,224

Korea:1,321

Spain is the world’s 14th-largest economy and the 5th-largest economy in the EU: GDP worth 1.2 trillion USD

Source: IMF, 2016. Data Referred to 2015Estimated Data

ICEX ESPAÑA EXPORTACIÓN E INVERSIONESNombre del departamento

2015 Spain UkraineGDP (BUSD at current prices) 1.199,7 90,138

GDP per capita 25,865 2,106

Population (millions) 46,4 42,8

Inflation (annual average, %) -0,6 48,7

Public debt (% of GDP) 99,2 94,0

Export of goods (in BUSD) 281,8 38,134

Import of goods (in BUSD) 309,3 37,502

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Source: INFORME ECONÓMICO Y COMERCIAL, UCRANIA (July 2016 edition); European Commission Database 2016, Data Referred to 2015; CIA Database 2015

Spain and Ukraine: Macroeconomic Indicators


Market AccessDomestic market of over 46 million consumers: Spain has a GDP per capita (PPP) above the EU-28 average.

Spain grants free access to the world´s largest market, the European Union: more than 500 million consumers

Advantages of operating in the EU: Intra-European duty-free market. Free movement of goods and

services, capital and persons. Single currency: EURO.

Capacity for consumption of goodsCountry GDP per capita

RK USD1 United States 6 55.8052 China 76 7.9903 Japan 26 32.4864 Germany 20 40.9975 UK 14 43.7716 France 22 37.6757 India 144 1.6178 Italy 27 29.8679 Brazil 74 8.670

10 Canada 17 43.33211 Korea 31 27.19512 Russia 69 9.05513 Australia 10 50.96214 Spain 32 25.86515 Mexico 70 9.009

Source: IMF, 2016 data referred to 2015.


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2016 Economic Freedom Score: 68.5 (up 0.9 point) Economic Freedom Status: Moderately Free Global Ranking: 43rd

Regional Ranking: 20th in Europe Notable Successes: Open Markets and Monetary Freedom

SPAIN Economic Freedom Index, 2016

Source: Terry Miller and Anthony B. Kim, 2016 Index of Economic Freedom (Washington, DC: The Heritage Foundation and Dow Jones & Company, Inc., 2016), http://www.heritage.org/index/

Spain





Spain´s import from Ukraine

Ukraine is the biggest import partner of corn for Spain. In 2015, Spain´s import from Ukraine accounted for 525 million USD.

Spain is one of the biggest importers of wheat in the world, with 5.2 billion USD of trade value in 2015. Ukraine is its third biggest import partner, where the amount of wheat import from Ukraine accounts for nearly 129 million USD.

Source: United Nations Commodity Trade Statistics Database, 2015



Spain´s import from Ukraine

Ukraine is the largest import partner of safflower, sunflower and cotton-seed oil for Spain. Spanish import of safflower, sunflower and cotton-seed oil from Ukraine accounted for 161 million USD in 2015.



The free trade area came into effect on 1 January 2016

The DCFTA is entirely part of the Association Agreement (title IV). It combines:

a standard Free Trade Agreement (duty free trade on both sides, but phased in over 7 years, asymmetrically in favour of Ukraine)

a "Deep and Comprehensive" part, that foresees that Ukraine will adopt most norms and standards of the EU internal market (for industrial, consumer, food and agricultural products), but also competition rules, intellectual property, public procurement, services, etc.

Its aims at reducing tariff and non-tariff barriers between the EU and Ukraine, and therefore at facilitating trade and investments in both directions

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EU-Ukraine Deep and Comprehensive Free Trade Area (DCFTA)


I. It opens markets through the progressive removal of customs duties and restrictions on services and public procurement.

II. It ensures fair competition between EU and Ukrainian firms by safeguarding the respect of

intellectual property rights; basic workers’ protection or environmental standards; disciplines on use of subsidies and anti-competitive behavior.

III. It lays the ground for gradual alignment of norms and standards, including on food safety and technical regulations.

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The DCFTA contains three major pillars:


Texts of the AA/DCFTAhttp://eeas.europa.eu/ukraine/assoagreement/assoagreement-2013_en.htm

European Commission "Export Helpdesk"http://exporthelp.europa.eu/thdapp/index.htm

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Where to get information on tariff?

http://eeas.europa.eu/ukraine/assoagreement/assoagreement-2013_en.htm

http://exporthelp.europa.eu/thdapp/index.htm





UKRAINERegl. 2015/2081

common wheatproducts

barley products

maize products

Quota n° 09.4306 Quota n° 09.4307 Quota n° 09.4308950 000 250 000 400 000

1. Quotation

For Ukraine:

Tariff quotas are managed by the European Commission's Directorate of

Taxation on a 'first-come first-served' basis. The rate of import duty within the tariff quotas is set at EUR 0 per tone,

over the tariff quotas – 12-15 EUR per tone.

Source: European Commission, 2016


In order to export agricultural products to Spain, the European Union standards should be met:

technical requirements to protect consumers (Product safety, Technical

standardization, Packaging and Labelling);

marketing standards concerning quality;

environmental requirements to protect consumers and the

environment;

sanitary and phytosanitary requirements to protect human and animal

health (Food and feed safety, Animal health, Plant health and Public

health).

2. Standards and regulations


Goods shipped to a Spanish customs area without proper import licenses or declarations are usually subject to considerable delay and may run up substantial demurrage charges.Regulations establish fines for actions delaying normal customs procedure. Fines are not very large, usually between Euros 30 and 60.

3. Import Licenses


High degree of devolution of powers

to Spain´s 17 autonomous regions

The Canary Islands have an

Economic and Tax System (Canary

Islands REF) of their own, fully

approved by the EU, which fulfils all

the requirements of international

fiscal transparency.

4. Special territories


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Canary Islands REF provides the possibility of benefiting from a reduced 4% Corporation Tax and takes up the conventions for the avoidance of double taxation signed by Spain.

Source: KPMG, 2015

% EU corporate tax rates


Misunderstanding rooted in cultural differences present

the greatest obstacle to productive cross-border

collaboration.

Language: potential problems include mistranslation,

inappropriate messaging, lack of understanding of local

customs and differences in taste.

5. Language and Culture

902 349 000www.icex.es 902 349 000www.icex.es

Contact usEconomic and Commercial OfficeEmbassy of Spain in Ukraine, Klovsky uzviz 7a, 15-th floor, 01021 Kiev, UkraineTel: (+380) 44 280 53 63 / 64 E-mail: [email protected]://ucrania.oficinascomerciales.es

mailto:[email protected]

http://ucrania.oficinascomerciales.es/

http://ucrania.oficinascomerciales.es/

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November 10