China offers Ukraine to establish a free trade zone

Doing business in Ukraine, economy: China offers to establish a free trade zone

This article discusses the #recent #statement of the #Ambassador of the #People’s Republic of #China to #Ukraine in which he expressed #readiness of the #Chinese #government to start negotiations on the #free trade zone with Ukraine.

Visit our website if you are interested in the #Ukrainian_economy or #doing_business in Ukraine.

Mr. Du Wei, the Ambassador of the People’s Republic of China to Ukraine, during his speech at the forum dedicated to the Silk Road project mentioned that the Chinese government is interested and ready to commence negotiations with Ukraine over establishment of a free trade zone between the countries.

We note that for the last couple of years economic and trade cooperation between Ukraine and China has significantly increased. Thus, in 2015 China became the biggest importer of Ukrainian food products. The amount of imported Ukrainian food was around USD 889 million with the predominant share of import of corn. In addition, China included Ukraine among only five countries which were granted the right to import grain products to the territory of the People’s Republic of China.

Ukraine also aims to strengthen its business and trade cooperation with the People’s Republic of China through implementation of a new trade route between Ukraine and China, which is designed for transportation of goods avoiding the territory of the Russian Federation. On 15 January 2016, the first cargo was loaded on a ferry in the Ukrainian port of Illichivsk to be transported to China via Black and Caspian seas and railway routes through Georgia, Azerbaijan and Kazakhstan. The cargo reached the Chinese border within 16 days.

We also note that Ukraine has an effective free trade zone agreement with the European Union. Additionally, the Canada-Ukraine free trade zone agreement was signed in summer 2016 and is awaiting ratification by the parties. Furthermore, there are ongoing negotiations with Turkey and Israel on establishing of mutual free trade zones.

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