Bilateral trade between Ukraine and the United States in recent years has been characterized by a steady upward trend, while the financial crisis caused by the COVID-19 pandemic has negatively affected the positive dynamics of bilateral relations.
According to the State Statistics Service of Ukraine, in 2020, the total trade turnover between Ukraine and the United States decreased by 7.6% and amounted to 3.94 billion USD. The volume of export of goods from Ukraine to the United States increased by 0.5% compared to 2019 and amounted to 0.98 billion USD. Imports of goods from the United States decreased by 10% and amounted to 2.95 billion USD.
The keystone of Ukrainian exports to the United States were ferrous metals and articles (61.4%), fats and oils of animal or vegetable origin (5.7%), ores, slags and ashes (4.8%), nuclear reactors and boilers (2.6%), machinery, electrical machinery (2.3%) and aircraft (2.1%).
Imports of American goods to Ukraine are more diversified. The largest items of American imports are land transport, except for rail (27.4%), fuel (20.2%), boilers and machines (8.4%), electrical machines (6.8%) and optical devices (4.7%). Also, the structure of American imports to Ukraine includes seeds and fruits of oil plants, pharmaceutical products, plastics and polymeric materials, etc.
According to the results of 2020, the volume of trade in services between Ukraine and the United States increased by 2.9% and amounted to 1,84 billon USD or 11.2% of the total volume of trade in services of Ukraine. Exports of services to the United States grew by 7.8% compared to 2019 and amounted to 1.39 billion USD or 12.4% of the total export of Ukrainian services. The main exports were telecommunications, computer and information services, transport and business services.
In contrast, the volume of imports of services from the United States decreased by 9.5% compared to 2019 and amounted to 454 million USD or 8.7% of total imports of services to Ukraine. The base of American imports were government, financial and business services.
The most promising areas for Ukrainian exporters are the supply of chemical products, food products, consumer goods industry products, engineering products to the United States, as well as the provision of transport, telecommunications and IT services.
Exporters and Investors Council (EIC) under the Ministry of Foreign Affairs of Ukraine was established in 2013 in order to safeguard national interests in Ukrainian export promotion and attraction of foreign investments to Ukraine.
EIC is a platform, which unites Ukrainian producers, exporters and leading business associations providing necessary support in promoting their goods and services abroad and entering new markets, as well as attracting foreign investors and companies to Ukraine effectively using diplomatic tools, resources and networks.
The Head of the Council is the Minister for Foreign Affairs of Ukraine.
When importing certain products from Ukraine, U.S. importers can take advantage of Ukraine’s eligibility for the U.S. Generalized System of Preferences (GSP) benefits.
The GSP program allows 3,500 different products to enter the United States duty free.
How do I know if the product is covered by GSP for Ukraine?
Goods marked "A" or "A*" on the list of GSP-eligible products are covered for Ukraine. See web site Office of the United States Trade Representative https://ustr.gov/ section: Issue Areas/ Preference Programs/Generalized System of Preferences (GSP)/GSP Program Information/GSP-Eligible Products.
What does an importer need to do to claim the GSP benefit?
The U.S. importer must claim GSP duty-free treatment by placing the special program indicator “A” for GSP in front of every U.S. tariff line number for which it wants to claim GSP duty-free benefits on U.S. Customs and Border Protection (CBP) entry documentation. Millions of dollars of tariff benefits remain unclaimed each year. Don’t leave money on the table!
What other records and documents may be necessary to benefit from GSP?
Ukrainian exporters and U.S. importers should keep accurate production and accounting records that describe the production process and costs of production of each good exported under GSP. U.S. Customs and Border Protection (CBP) relies on the importer’s attestation that the good meets the rules of origin requirements, but CBP has the authority to ask an importer or producer to provide records to prove that the export is eligible for GSP duty-free treatment.
Do Ukrainian products have to meet a rule of origin requirements to be eligible for GSP?
Yes. Either the product must be: 1) wholly the growth, product, or manufacture of Ukraine; or 2) if foreign inputs are used, the cost of the value of the materials produced in Ukraine plus the direct costs of processing operations performed in Ukraine must be 35% or more of the appraised value of the good at the time of entry into the United States.
Are there any special rules about how the products are shipped to the United States?
Yes. The good can either: 1) be directly shipped to the United States without passing through the territory of any other country; or 2) it can transit other countries, but it must not enter the commerce of another country while being shipped to the United States and shipping documents such as the invoice, bills of lading, and other shipping documents should show the United States as the final destination for the good.
More detailed information about using GSP can be found at the GSP section of the website Office of the United States Trade Representative https://ustr.gov/: Issue Areas/Preference Programs/Generalized System of Preferences (GSP).