Experts estimate that Ukraine has significant potential to boost its exports to the European Union countries, which could increase by $10 billion. This growth is possible due to the expansion of cooperation with the EU in the extraction and partial processing of critically important materials, as well as the development of the defense industry. At the same time, this will contribute to strengthening the strategic autonomy of the European Union.
This is reported by Business • Media
Key Barriers to Trade Development with the EU
Despite the significant potential, there are three main barriers to expanding economic relations with the EU:
- The implementation of the Carbon Border Adjustment Mechanism (CBAM). In response to these changes, Ukraine needs to implement its own emissions trading system and consider the possibility of postponing the implementation of this mechanism.
- The European Union’s restoration of tariff quotas on certain types of Ukrainian agricultural products, which limits the export of domestic goods.
- Delays in signing and implementing the Agreement on Conformity Assessment and Acceptance of Industrial Products (ACAA), which is necessary to overcome non-tariff barriers in trade of industrial goods.
Integration Costs and Strategic Opportunities
According to analysts, if Ukraine joins the EU, the bloc’s budget will require additional expenditures that could reach €90 billion over the first five years of membership. Effective integration of the Ukrainian economy into the European market is possible through the active use of opportunities arising from the EU’s demand for strategic autonomy.
“Ukraine has the potential to increase exports to EU countries by $10 billion. At the same time, there is significant potential to strengthen European strategic autonomy. This includes cooperation with Ukraine in the extraction and partial processing of critical materials, as well as the development of the defense industry.”