This article discusses the latest developments in trade between Ukraine and the EU. In particular, Ukraine became the biggest importer of wheat to the EU member states in 2015/2016 market year.
From July 2015 to June 2016 Ukraine has exported nearly 1.640 tons of wheat to the EU. According to the Deputy Minister of Economic Development and Trade of Ukraine, this resulted in the fact that Ukraine became the biggest importer of wheat to the EU member states. Ukraine imported almost 50% of all wheat to the EU, which is more than the USA, Canada and Russia combined.
The Deputy Minister of Economic Development and Trade of Ukraine also stated that despite Ukraine has already used up all quotas for import of wheat to the EU member states in 2016 under the terms of EU-Ukraine Free Trade Zone Agreement (amounted to 950 000 tons), export of wheat from Ukraine will continue outside the quotas. In addition, negotiation regarding further liberalization of export of wheat from Ukraine is ongoing.
According to the Ministry of Economic Development and Trade of Ukraine, in the first quarter of 2016 export of Ukrainian goods to the EU members states amounted to USD 1.2 billion. One of the main areas of economic cooperation between Ukraine and EU is agriculture.
Under the terms of EU-Ukraine Free Trade Zone Agreement, which became effective on 1 January 2016, Ukraine may sell certain goods to EU without any import duties up to a certain amount. Ukraine has used up all quotas for sale of flour and sugar, corn, grape and apple juice and honey, while quotas for sale of processed, soft wheat, wheat flour and granules and oat are almost filled. In the first quarter of 2016 Ukrainian agriculture export to EU increased by 15.3% (or USD 155 million). The main destinations of Ukrainian agricultural products are Spain, the Netherlands, Italy, France and Poland. Nevertheless, EU’s share in Ukrainian agricultural export (which is 37%) is still lower than the share of export to Asian countries.