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
ICEX ESPAÑA EXPORTACIÓN E INVERSIONES
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
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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
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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
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Opportunities for Ukrainian producers of Agricultural products in Spain.
TOP 5 items Ukrainian companies must know before entering Spanish market
ICEX ESPAÑA EXPORTACIÓN E INVERSIONES
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
Source: United Nations Commodity Trade Statistics Database, 2015
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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.
Source: United Nations Commodity Trade Statistics Database, 2015
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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)
ICEX ESPAÑA EXPORTACIÓN E INVERSIONESNombre del departamento
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:
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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?
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Opportunities for Ukrainian producers of Agricultural products in Spain.
TOP 5 items Ukrainian companies must know before entering Spanish market
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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
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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
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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
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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
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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
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