With regard to the EU-Ukraine DCFTA agreement, the following presentation features Trade in Services. The different issues about it and the implementation are marked. This also applies import and export indications. Veronika Movchan is a Ukraine expert, an academic director and head of the Center for Economic Studies at IER in Kiev. Her main research interests are for example trade policy and regional integration. Further information: Stakeholder Dialogue in Cooperation with the AHK Tunisia - Negotiating ALECA – Lessons Learned from the DCFTAs with Ukraine, Moldova and Georgia. Organizer: Bertelsmann-Stiftung in Cooperation with the AHK Tunisia Date: Wednesday, 27-28 June 2018.

1. EU-Ukraine DCFTA:
review of trade in services
Veronika Movchan
Institute for Economic Research and Policy Consulting
for Bertelsmann Stiftung Berlin
Kyiv, 2018

2. 2
Ukraine in services with the EU
0%
5%
10%
15%
20%
25%
30%
35%
40%
0
1
2
3
4
5
2010
2011
2012
2013
2014
2015
2016
2017
USDbn
Exports of services
Exports of services to the EU (LHS)
% share of the EU in total exports (RHS)
0%
10%
20%
30%
40%
50%
60%
0
1
2
3
4
5
2010
2010
2011
2012
2013
2014
2015
2016
2017
USDbn
Imports of services
Imports of services from the EU (LHS)
% share of the EU in total imports (RHS)
In 2017, trade in services accounted for only 13% of Ukraine’s trade in goods
and services with the EU
Source: State Statistics Service of Ukraine

3. 3
Structure of trade in services
transport
ation
37%
processin
g
24%
ICT
19%
business
13%
other
7%
Exports of services
transport
ation
27%
business
17%
travel
12%
royalty &
other
IPRs
12%
financial
10%
other
22%
Imports of services
Ukraine’s imports of services from the EU is more diversified than exports
Source: State Statistics Service of Ukraine; data for 2017

4. 4
Establishments and cross-border trade
 The liberalization of trade in services is less extensive than of trade in goods
and features many reservations/exemptions
 The reservations regarding establishments are listed in a negative list, thus
any new sectors are automatically covered as not listed in exemptions
 The reservations regarding cross-border supply of services and
consumption abroad are listed in a positive list, thus the EU and Ukraine
grant access only to sectors listed in the agreement
EU-wide and
member states’
reservations
Ukraine’s
reservations
Number of reservations with regard to market access and
national treatment for establishments
105 21
Number of reservations with regard to market access and
national treatment for cross-border supply of services
190 27
Number of reservations with regard to market access and
national treatment for consumption abroad
72 1

5. 5
 The legal approximation and thus eventually “internal market treatment” at
the EU market is envisaged for four sectors:
▫ Financial services;
▫ Telecommunication services;
▫ Postal and courier services; and
▫ International maritime transport services.
 The internal market treatment means that:
▫ There shall be no restrictions on the freedom of establishment of
juridical persons of the EU or Ukraine in the territory of either of them
▫ Juridical persons of one Party shall be treated in the same way as juridical
persons of the other Party.
▫ There shall be the freedom to provide services in the territory of the
other Party
 To achieve the internal market treatment, Ukraine shall transpose and
continuously implement the existing EU legislation.
Internal market treatment

6. 6
Sectors Legal Commitments Status of Implementation
Financial services • 50+ directives &
regulations
• Transition: 2-6 years
• Have to be updated to
take into new EU
regulations
• Ongoing reforms in the sector
• Adopted Comprehensive
Programme of Financial Market
Development of Ukraine
• Gradual progress in legal
approximation
Telecommunication
services
• 9 directives
• Transition: 2-4 years
• Strong growth of the sector
• Law on e-commerce adopted
Postal and courier
services
• 3 directives on internal
market
• Transition: 2 years
• Competitive market
• Roadmap on legal approximation
adopted
International
maritime transport
services
• 15+ directives &
regulations
• Transition: 3-6 years
• Sector requires important changes
• Roadmap on legal approximation
adopted
Review of regulatory commitments

7. Contacts
@IER_Kyivwww.ier.com.ua
8/5-А Reytarska str., Kyiv 01030, Ukraine
tel: +38-044-278-6360
e-mail: institute@ier.kiev.ua
IER.Kyiv