Topic 3.

Foreign Trade Policy of Ukraine

• 1. The legal framework of foreign trade activity in

Ukraine
• 2. Ukraine's commitments concerning foreign
trade regulation as a WTO member
• 3. The Deep and Comprehensive Free Trade Area
of Ukraine with the EU within the framework of
the Association Agreement
• 4. International trade agreements of Ukraine
• 5. Trade barriers in Ukraine
1. The legal framework of foreign trade
activity in Ukraine

Law on Foreign Economic Activity

The Customs Code of Ukraine

Supplements to the Customs

The Tax Code of Ukraine

Procedure for Registration of Entities that Carry Out Operations with

Goods
2. Ukraine's commitments concerning
foreign trade regulation as a WTO member
Facts about the WTO
Location: Geneva, Switzerland
Established: 1 January 1995
Created by: Uruguay Round negotiations (1986-94)
Membership: 164 members as of May 2018
Budget: 197.2 million Swiss francs for 2017
Secretariat staff: 640
Head: Roberto Azevêdo (Director-General)
Ukraine: accession to the WTO in 2008
Antidumping, countervailing and safeguard
measures within the framework of the
WTO
The WTO Agreements include provisions which allow Members to depart from

• the basic principles on non-discrimination applicable to trade between WTO

Members (the Most-Favoured-Nation (MFN) and National Treatment principles),

• rules related to tariff and non-tariff barriers (NTBs), including the disciplines related
to commitments on maximum bound tariff rates, and

• the general prohibition on quantitative restrictions (QRs) (such as quotas), subject to

certain conditions.

Three of these issues are:

• actions taken against dumping (selling at an unfairly low price)
• subsidies and special “countervailing” duties to offset the subsidies
• emergency measures to limit imports temporarily, designed to
“safeguard” domestic industries.
3. The Deep and Comprehensive Free Trade Area of
Ukraine with the EU within the framework of the
Association Agreement
• Since 2014 Ukraine has been a party to the EU-Ukraine Association Agreement.
• The Association Agreement came into full force on 1 September 2017.
• The economic part of the Association Agreement establishing the Deep and
Comprehensive FTA commenced in January 2016.

Tariffs for more than 84 per cent of food products cancelled and tariff quotas for
36 Ukrainian agricultural products provided.

The European Union carries out the administration of the EU tariff quotas on two
principles:
"first come – first served" – registration of import of goods in the framework of the
tariff quota makes depending on the availability of the unused balance of the quota at
the time of submission of accompanying documentation.

"import license" – importers of Ukrainian goods make the appropriate application to

the Directorate-General for Agriculture and Rural Development for the right to import
(license).
 4. International trade agreements of Ukraine
Ukraine has concluded 17 FTAs covering 47 countries in total, but is not a member of any customs union. Ukraine is a
member of the following FTAs:
•  FTA between Ukraine and Israel (2019) (Since January 1, 2019, Ukraine has become a member of Regional
Convention on pan-Euro-Mediterranean preferential rules of origin (PEM Convention))
• Deep and Comprehensive FTA between the EU and Ukraine (within the framework of the Association Agreement
between the European Union and its Member States, on the one part, and Ukraine, on the other part), which entered
into force on 1 September 2017 and provisionally applied since 1 January 2016 (DCFTA).
• Canada-Ukraine FTA, which entered into force on 1 August 2017 (CUFTA).
• FTA between the Government of Montenegro and the Government of Ukraine, which entered into force on 1 January
2013 (Ukraine-Montenegro FTA).
• Commonwealth of Independent States FTA, which entered into force on 20 September 2012 (CIS FTA). The CIS FTA
was concluded by Armenia, Belarus, Kazakhstan, Kyrgyz Republic, Tajikistan, Uzbekistan, Moldova, and the Russian
Federation. However, as of 1 January 2016, the Russian Federation and Ukraine have suspended the operation of the
FTA with respect to each other.
• FTA between EFTA States and Ukraine, which entered into force on 1 June 2012 (EFTA-Ukraine FTA).
• Agreement on Free Trade between the Republic of Macedonia and Ukraine, which entered into force on 5 July 2001
(Ukraine-Macedonia FTA).
• Agreement on Free Trade between the Government of Ukraine and the Government of the Republic of Azerbaijan,
which entered into force on 26 August 1996 (Ukraine-Azerbaijan FTA).
• Agreement on Free Trade between the Government of Ukraine and the Government of Republic of Georgia, which
entered into force on 4 June 1996 (Ukraine-Georgia FTA).
• Agreement on Free Trade between the Government of Ukraine and the Government of Turkmenistan, which entered
into force on 4 November 1995 (Ukraine-Turkmenistan FTA).
5. Trade barriers in Ukraine
As a WTO member, Ukraine is subject to the goods schedule indicating bound rates. The information on binding
tariffs and applied rates can be accessed at www.wto.org/english/thewto_e/countries_e/ukraine_e.htm. No prior
notification is needed for imports under Ukrainian legislation.

• Tax-free maximum threshold to a total invoice value of the shipment not exceeding €100 per person and
total customs value of the shipment not exceeding €150 per legal entity.
• Shipments with an invoice value ranging between €150 and €10,000 are subject to a 10 per cent import duty
plus VAT (in the amount of 20 per cent) enshrined in the Tax Code of Ukraine.
• Countries having FTAs with Ukraine can benefit from preferential tariffs.
• Import duty is differentiated in respect of the goods originating from countries that are members of customs
unions with Ukraine or which form free trade zones with it. In case of the introduction of any special
preferential customs procedure in accordance with international treaties ratified by the parliament of
Ukraine, the preferential rates of import duty set by the customs tariff of Ukraine shall be applied.
• Preferential rates of import duty set by the customs tariff of Ukraine shall be applied for goods originating
from Ukraine or member countries of the WTO or the countries with which Ukraine has entered into
bilateral or regional agreements under MFN treatment
• Every year the government of Ukraine compiles the list of products subject to an import/export licensing and
quotas regime. The list of such products for 2019 can be found in Regulation No. 1136 of the Cabinet of
Ministers of Ukraine dated 27 December 2018 (available at: https://zakon.rada.gov.ua/laws/show/1136-
2018-%D0%BF).