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Translated by Ollie Richardson

14:18:09
14/11/2017

riafan.ru

Commodity turnover with Kiev was many times more favorable for the European Union than it was for Ukraine. The corresponding conclusions are contained in the report of the EU “On implementation of agreements on free trade”. The Federal News Agency studied the document. As a reminder, the agreement on Deep and Comprehensive Free Trade Areas (FTZ, DCFTA) between Ukraine and the European Union started working as of January 1st, 2016.

In the report it is noted that the data provided in the document is explained by the fact that at the moment the economy of Ukraine is only just recovering.

“Export from the EU to Ukraine and import from Ukraine increased by 17.6% and 1.9% respectively in 2016,” it is said in the document.


In particular, in the report it is reported that Ukrainian forages for animals are especially popular in Europe.

“In May, 2017, the Ukrainian company ‘Kormotekh’ was included in the top-50 producers of forages for animals in the world and in Europe (in this list there are only three companies from Central and Eastern Europe). Thanks to the DCFTA, within the last two years the products of the company (cat and dog food) started winning new markets in the EU, because their capacities conform to the European standards of safety and quality of foodstuff,” it is said in the document.

In addition, the EU notes a positive trade balance with three countries — Moldova, Ukraine, and Georgia.

“The EU is the largest trade partner of all three countries – they account for 55% (Moldova), 41% (Ukraine), and 30% (Georgia) of total trade in 2016,” it is said in the report.

Unfulfilled hopes

Recall that the agreement on Deep and Comprehensive Free Trade Areas (FTA, DCFTA) between Ukraine and the European Union started working on January 1st, 2016. In this regard Kiev received duty-free access to the EU market. Such measures are a part of the agreement of Ukraine on association to the EU.

As the European Commission earlier stated, the agreement was supposed to contribute to the modernization of the Ukrainian economy and create additional opportunities for carrying out reforms.

“Thanks to the liberalisation of tariffs and, above all, regulatory rapprochement Ukraine will be able to quickly take advantage of new trade opportunities and simplified access to the largest market in the world,” stated the EU.

The President of Ukraine Petro Poroshenko also repeatedly spoke about the advantages for Ukraine of the trade agreement with the EU.

“We are introducing Deep and Comprehensive Free Trade Areas, despite strong opposition and pressure from the Kremlin,” said the Ukrainian President in 2015. “I don’t doubt that in a few years this agreement will offset all losses that our national economy, the State budget, the social sphere of the country, and the wallet of every Ukrainian suffered from Russia’s aggressive closure of its market for the Ukrainian market — we will overcome it”.

Nevertheless, judging by the condition of the Ukrainian economy in November, 2017, all these hopes remain unfulfilled. Tariffs and prices in Ukraine grow, people of working-age leave en masse to earn money abroad by using the visa-free regime with the EU, and Ukrainian goods don’t find sufficient demand neither in Europe nor in other countries.

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  • Vtran

    That is Who Pyramid schemes work …. those on the bottom feed those above