Non-tariff barriers in Ukrainian export to the EU

Abstract

The economic relations between the EU and Ukraine have intensified in recent years. Following the 2004 enlargement, Ukraine became the direct neighbour of the EU. At the same time, the country has been developing rapidly and both local production capacities and demand for foreign produce have been increasing. Ukraine also become more open to external partners. All this is reflected in the gradual effective trade integration with the EU; i.e. in growing bilateral trade flows. The overall EU tariffs for Ukrainian products are rather low and other tradition protection measures apply to selective sectors only. Moreover they are expected to disappear gradually within the next few years, following Ukraine WTO entry and expected establishment of the free trade area in manufacturing goods between the EU and Ukraine. However, there exist other so called ‘non-tariff’ barriers to trade that protect and will protect the EU market. For a relatively poorer country these barriers may turn to be prohibitive. This is probably the cause that there is general perception about Ukrainian export to the EU still being below its potential. The goal of this report is to explore whether the non-tariff barriers impede Ukrainian export to the EU and to what extent.