You're reading: US gives Ukrainian companies opportunity for duty-free exports

Ukraine will be able to export about 5,000 items of goods to America duty-free from the end of July, according to a Ministry of Economy and Trade news release issued on July 2.

The preferential trade terms fall under the
renovation program of the Generalized System of Preferences of the U.S., and
will run from July 29 until the end of December 2017.

Three phone calls placed with the Office of
the U.S. Trade Representative went unanswered, and e-mailed inquiries to the
office weren’t immediately answered.

The wide range
of goods
that qualify for duty-free export include a number of chemical
products, minerals, jewelry, and agricultural products, according to Ukrainian
Deputy Economy Minister Natalia Mykolska.

She also noted that in order for Ukraine to
be eligible for the program, it has to demonstrate effective protection of
intellectual property and labor rights. Ukrainian companies in addition should
comply with rules related to origin of exported goods.

“The news is positive for the Ukrainian
economy,” Kyiv-based investment house Empire State Capital wrote in an emailed
note on July 3. “While we estimate that the effects of this program will not
become visible until 2016 due to additional conditions set up by the program,
it should lead to the increase of trade volume with the United States and help
Ukrainian companies enter the U.S. market.”


Since 2004, Ukraine-U.S. trade relations have barely improved. On the contrary, bilateral trade turnover has been getting closer to where it started off.  Since 2009, Ukraine has had a trade surplus with the U.S., where its exports have exceeded imports.

Since 2004, Ukraine-U.S. trade relations have barely improved. On the contrary, bilateral trade turnover has been getting closer to where it started off. Since 2009, Ukraine has had a trade surplus with the U.S.

Main exports from Ukraine to the U.S. are iron
and steel, chemicals, foodstuffs, locomotives and machinery.

Ukraine’s 2014 trade turnover with the U.S.
stood at $2.2 billion. As of April, the U.S. has invested $795 million cumulatively
in Ukraine. Major American investors in Ukraine include Cargill, DuPont Pioneer,
Monsanto, Coca-Cola, McDonald’s, Citigroup, and ExxonMobil.

Kyiv
Post editor Mark Rachkevych can be reached at [email protected].