Experts evaluated the impact of free trade with the EU on the economy of Ukraine

04.03.2019

The study of the impact of the introduction of a free trade zone between Ukraine and the European Union was based on criteria for reducing duties on the part of Ukraine and additional costs for exporters to bring products to EU requirements.


Elena Bazhenova, associate expert of the analytical center House of Democracy, said this during the presentation of the study Assessment of the sectoral impact of the Agreement on a Free Trade Zone between Ukraine and the EU on the Economy of Ukraine, the agency reports.

"We investigated the introduction of a free trade zone between Ukraine and the EU on the performance indicators of economic sectors, including: the metallurgical industry, agriculture, engineering, chemical and light industry. The impact of the introduction of an FTA between Ukraine and the EU in the field of national economy was studied based on the use of economic -mathematical modeling ", - said Bazhenova.

According to her, such shocks were considered as a reduction in the aggregate rate of import duty for the EU and an increase in the share of the exporters total costs to the EU to ensure compliance with EU standards.

"Our task was to study the main indicators of the functioning of the sectors of the national economy to these shocks," the expert emphasized.

She noted that as a result of the Agreement on the Association, in the metallurgical industry there was an increase in both exports and imports of products, which will be observed in the future.

As for agriculture, here it is possible to distinguish among the products most exported by Ukraine to the EU: cereals and sunflower oil.

"According to our estimates, the reduction in the aggregate rate of import duties in the EU led to an increase in both the production and export of sunflower oil and grain crops, but it should be noted that the production and export of products significantly depends on the price situation on world agricultural markets," Bazhenova said.

As for the chemical industry, the expert added, there will be a slight reduction in exports and a drop in imports of products.

In engineering, there will be a slight drop in exports and an increase in imports in the short term and its fall in the long term.

At the same time, according to the study, it is expected that there will be a short-term growth in exports of light industry products and its decline in the long term, Elena Bazhenova summed up.

As is known, on January 1, 2016, a free trade zone between Ukraine and the EU began to operate.

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