Trade Potential Assessment of Value Chains in The Eastern Ukrainian Economy

2020

Effective from August 1, 2017, the Canada-Ukraine Free Trade Agreement (CUFTA) aims to improve market access conditions for Canadian and Ukrainian companies, including elimination of tariffs. Upon CUFTA’s entry into force, Canada immediately eliminated customs duties for 26.5% of its tariff lines resulting in 98.1% of Canada’s tariff lines being duty free for imports from Ukraine. At the same time, Ukraine immediately eliminated custom duties for 34.7% of tariff lines and overall, 72.6% of Ukraine’s tariff lines became duty free for imports from Canada.

We analyzed Ukrainian enterprises operating within specific value chains: Packagingand Cardboard, Agricultural machinery, Socks, Plastics and Aerospace. Our focus was on detecting the promising products that these companies import from elsewhere, but instead could import from Canada with more profit. The primary target regions are the government controlled areas of Donetsk and Luhansk oblasts. Therefore, all value chains are analyzed for companies located in these two regions. Moreover, Aerospace and Agricultural machinery VCs are analyzed at the national level.

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