Supporting trade between Ukraine and the European Union

Project description

Title: Utilisation and implementation of the Association Agreement between the EU and Ukraine in the field of trade
Commissioned by: German Federal Ministry for Economic Cooperation and Development (BMZ)
Co-funded by: European Union (EU)
Country: Ukraine
Lead executing agency: Ministry of Economy of Ukraine
Overall term: 2020 to 2024

The harbour of Odessa.

Context

Ukraine’s economy has been in a difficult position for several years, with the conflicts in Crimea and Eastern Ukraine hindering its development since 2014. Now the COVID-19 pandemic has affected small and medium-sized enterprises (SMEs) in particular. As a consequence, in 2020 Ukraine had the lowest gross domestic product in the whole of Europe. Investments in the country are associated with high risks.

To provide impetus for economic development, the Ukrainian Government signed the Association Agreement with the European Union (EU), which came into force in 2017. The resulting free trade zone makes it easier for Ukraine to sell products in the EU, but also requires Ukraine to adapt to the regulatory conditions and laws of the European Union. This is a major challenge for politics, administration and business. Ukrainian companies lack the innovative potential and expertise to comply with EU standards and utilise new economic opportunities.

Objective

The Ukrainian Government promotes SMEs, innovations and exports for sustainable economic growth. 

Approach

This project helps Ukrainian companies enter the EU market. To this end, it supports the responsible authorities with technical and legal preparation for the Agreement on Conformity Assessment and Acceptance of Industrial Products (ACAA). The Agreement will result in a visa-free regime for Ukrainian goods on the European market.

The project supports SMEs in all regions of Ukraine in business clusters and networks. It also implements capacity development measures for local economic promotion and intermediaries and promotes innovation projects, allowing entrepreneurs to get to know new tools and business approaches in specialist forums, training courses, individual consultations and international exchange programmes.

Last update: September 2021

Employees in a large bakery.