The bilateral trade between Ukraine and the United States in recent years has been characterized by a steady upward trend, while the financial crisis in 2020 caused by the COVID-19 pandemic has negatively affected the positive dynamics of bilateral relations. However, the outcomes of 2021 showed a resumption of growth in the Ukraine-US bilateral trade.
According to the State Statistics Service of Ukraine, in 2021 the United States ranks 8th among our trade partners due to the trade turnover. The total trade turnover between Ukraine and the USA increased by 24% compared to 2020 and amounted to $7.64 billion. Exports increased by 46.7% to $3.522 billion, imports increased by 9.5% to $4.114 billion.
The bilateral trade in goods increased by 22.3% and amounted to $4.9 billion. Exports increased by 64.9% to $1.6 billion, imports increased by 8.6% to $3.3 billion.
The top goods of Ukrainian exports to the USA in 2021 were: ferrous metals (56.2%) and articles (8.7%); ore, slag and ash (4.6%); fats and oils of animal origin (3.8%); electrical machinery (3.7%). The top Ukraine’s imports from the USA: land transport, except for rail (32.2%); mineral fuel (20.6%); nuclear reactors, boilers, machines (10.2%); electrical machines (4,7%).
In 2021, the bilateral trade in services between Ukraine and the USA increased by 27.4% and amounted to $2.7 billion. Exports of services increased by 34.1% to $1,900.1 million. The main exports were telecommunications, computer and information services; transport and business services.
Imports of services increased by 13.6% and amounted to $781.2 million. The main imports were government, financial and business services.
The most promising areas for Ukrainian exporters to the USA are the supply of chemical products, food products, consumer goods and machine-building industry products as well as the provision of transport, telecommunications and IT services.
According to the National Bank of Ukraine, up to December 31, 2021, $920.6 million of investments from the USA were attracted to the economy of Ukraine, which is 2.1% of the total foreign investments in Ukraine.
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).