Ukraine’s exports to the EU: the effect of non-tariff measures

 

In this research the Trade+ experts analysed how EU’s non-tariff measures effect Ukraine’s exports to this market. The EU’s sanitary and phytosanitary non-tariff measures are less restrictive in 2018 for Ukrainian goods on the EU market than in 2013. In particular, each additional sanitary and phytosanitary non-tariff measure (except for prohibitions and restrictions) in 2013 reduced the physical volume of Ukrainian goods by 16%, and in 2018 – by 12%. The negative impact decreased by a quarter.

The analysts connect these findings with the fact that the Free Trade Agreement with the EU came into the effect and Ukraine began harmonizing its legislation and standards with the EU legislation and standards.

In addition to sanitary and phytosanitary measures, technical barriers to trade and export related measures also have a restrictive effect on the Ukrainian exports to the EU. In particular, in 2013, each additional non-tariff measure of the Technical Barriers to Trade group (except for prohibitions and restrictions) increased the price by 2.5% and reduced the physical volume of goods by 12%. Non-tariff measures of Group Export related measures increased the price by 14% and reduced the physical volume of goods by 103%. In 2018, these effects are almost the same.

In all cases where non-tariff measures increased the price of Ukrainian goods, the physical volume of goods exported to the EU decreased by a larger percentage. This means that the overall effect of each of these non-tariff measures was restrictive for Ukrainian exports to the EU.

Read the full report prepared by the Foreign Trade Research Center Trade+.

 

 

The Center was established at the Kyiv School of Economics in the framework of the project “Promotion of a Supportive Framework for Trade in Ukraine”, that is implemented by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH on behalf of the German Government.