ViktorHalasiukVice-ChairoftheEU-UkraineParliamentaryAssociationCommittee(UAPart),ChairoftheVerkhovnaRadaIndustrialPolicy&EntrepreneurshipCommittee

DCFTA:Expectations,Results&Prospects

ParliamentofUkraine

ParliamentofUkraine

TradewithEU(Goods)

Source:UkrainianNationalStatistic

bn$

$13,1

$18,0 $17,1 $16,8 $17,0$13,0

$19,1

$25,8 $26,2 $27,0

$21,1

$15,3

-$6,1-$7,8 -$9,1 -$10,3

-$4,1-$2,3

37,7%

-4,9% -1,9% 2,6%

-23,4%

-2

-1,5

-1

-0,5

0

0,5

-$15

-$5

$5

$15

$25

$35

$45

2010 2011 2012 2013 2014 2015

ExportDynamics

23.04.2014-31.12.2015AutonomousTrade

Preferences

EX IM EX IM EX IM EX IM EX IM EX IM

BAL BAL BAL BAL

BAL BAL

TradewithEU(Goods):2016

ParliamentofUkraine

$3,3 $3,2

$3,8 $3,9

-$0,5 -$0,7-$1

$0

$1

$2

$3

$4

$5

$6

3mo.2015 3mo.2016

EX EXIM IM

BAL BAL

-3,1%

Source:MinistryofEconomicDevelopmentofUkraine

ExportDynamics

bn$

ParliamentofUkraine

DynamicsofTOPUAExportSectorstoEU:2015

+$0,02 -$0,03-$0,15

-$0,22 -$0,26

-$0,71

-$1,29 -$1,35-$1,4

-$1,2

-$1,0

-$0,8

-$0,6

-$0,4

-$0,2

$0,0

$0,2 Agro&Food

Wood&Paper

OtherIndustrialGoods

Machinebuilding ChemicalsLight

industry

Source:MinistryofEconomicDevelopmentofUkraine

Minerals Metallurgy

bn$

ParliamentofUkraine

Source:UkrainianNationalStatistic

ExportDeclinebyCountry(EU):2015

-$0,18 -$0,20 -$0,20 -$0,22 -$0,22 -$0,23-$0,26

-$0,49

-$0,60

-$0,67-$0,7

-$0,6

-$0,5

-$0,4

-$0,3

-$0,2

-$0,1

$0,0Austria Netherlands Slovakia UK Cyprus

CzechRepublic Germany Italy Hungary Poland

bn$

ParliamentofUkraine

KeyReasons

ExternalFactors

InternalFactors

TariffBarriers:7outof36quotashavebeenfullyeilledin3monthsof2016(honey,grape&applejuices,corn,sugar,barley,oats,etc.)*

Non-TariffBarriers:noexportstartedfor19commoditygroupssubjecttoquotas

in3monthsof2016(eggs,sugarsyrup,garlic,processedstarch,mushrooms,cigars,cigarettes,processedmilkproducts,etc.)*

*-Source:MinistryofEconomicDevelopmentofUkraine

Corruption:Ukraineis130thoutof168countriesbyCorruptionPerceptionsIndex2015

IneffectiveTaxSystem:Ukraineis121thoutof140countriesbyEffectoftaxationon

incentivestowork(TheGlobalCompetitivenessIndex2015-2016)

LackofAffordableLoans:Averageinterestrateinnationalcurrencyis25%+forlong-term

collateralizedloans;BankloanstoGDPratiodecreasedto49%in2015

MonopolizedElectricityAccess:Ukraineranks137thoutof189countriesby“GettingElectricity”index(DoingBusiness)

ParliamentofUkraine

KeySolutions

Negotiationsontariffandnon-tariffliberalizationoftrade

ExternalPolicy

Developmentoftradediplomacy

Improvementoftradeinformationmechanism

Liberalizationoftraderemedies

Coordinationofcooperationontechnicalassistance

Boldanticorruptionmeasures

InternalPolicy

Judicial&prosecutionsystemreboot

Radicaltaxreform

Strengtheningofcompetitionpolicy

Investment&industrialpolicyastoppriority

DeeperInvolvementofBusinessCommunity,UkrainianandEuropeanLegislators,interalia,throughAssociationCommitteeinTradeConeiguration(ACTC)

ParliamentofUkraine

ThankYou!