Trade promotion in Ukraine
Title: Promotion of a Supportive Framework for Trade in Ukraine
Commissioned by: German Federal Ministry for Economic Cooperation and Development (BMZ)
Lead executing agency: Ministry of Economic Development, Trade and Agriculture of Ukraine
Overall term: 2016 to 2020
Since the 2008 global financial crisis, Ukraine’s economy has been facing challenges. Fuelled by the conflict over the Crimea and in eastern Ukraine in 2014, the economic situation in Ukraine has deteriorated again. From 2014 to 2015 the gross domestic product fell by 16 per cent. Exports are also declining – particularly in the Russian market that was previously one of Ukraine's most important buyers. The export rate dropped by over a third between 2013 and 2016.
Access for Ukrainian companies to European Union (EU) markets has been facilitated for selected sectors.
GIZ is working on behalf of the German Government to create better conditions for Ukrainian companies that wish to sell their products in the European market. To make the EU markets more accessible, the trade and export policy framework needs to be redesigned. GIZ supports the Ministry of Economic Development, Trade and Agriculture of Ukraine in developing action plans for Ukraine's 2017 to 2021 export strategy. Officials from public institutions, experts from the private sector and representatives from business associations and chambers of commerce meet in specially created working groups to discuss solutions on implementing the export strategy. With the support of international experts they learn more about EU-compliant quality standards and about implementing policy measures. Cooperation and exchange are also being advanced through modern dialogue formats such as workshops, conferences and round table discussions.
GIZ is also increasing awareness among Ukrainian producers of the new standard system and providing training in standardisation for staff of Ukrainian institutions such as the Ukrainian Standardisation Body. Ukraine's standards will thus be adapted to those of the EU and trade barriers will be lowered. The Association Agreement with the EU and a World Trade Organization (WTO) agreement will also reduce the administrative costs for exporters. Working with the relevant ministries and authorities, GIZ will ensure the introduction of simpler and more transparent trade procedures. Companies will have access to all the relevant trade regulations via a newly developed online platform. It is not only the companies which benefit from increased trade: the stronger economy will also improve living conditions throughout Ukraine.
GIZ supports the Ukrainian Government in developing strategies to improve conditions for export and trade. For example, action plans have been developed for the machine industry and the IT sector. Important cross-cutting issues are trade facilitation and innovations for export. In 2018 over 1,000 representatives from industry and government met in three rounds of public consultation to develop and discuss action plans with experts.
GIZ also provided support to the Ukrainian Standardisation Body in developing its new strategy. From 2020 the Standardisation Body aims to become a regulator and service provider which conforms to EU principles.