November 10

KIEV, 18th October 2016
TRADE AND ECONOMIC OFFICE OF SPAIN IN KIEV
Spanish Economy for Ukraine
Jaime Ramón Fernández Sánchez
Head of Economic and Commercial Office
Embassy of Spain in Ukraine

ICEX ESPAÑA EXPORTACIÓN E INVERSIONES
Opportunities for Ukrainian
producers of Agricultural products in
Spain.
TOP 5 items Ukrainian companies
must know before entering Spanish
market

Spain: a highly internationalized economy
GDP comparison of major economic regions,
USD billions
Germany: 3,358
UK:
2,849
Spain:
1,200
France:
2,422
Italy:
1,816
EU28: 16,220
USA:
17,947
Mexico:
1,144
Canada:
1,552
NAFTA:20,644
China:
10,983
Brazil:
1,773
Russia:
1,325
India:
2,091
BRICs: 16,171
NIE-4:
2,503
ASEAN-5:
2,034
Asia: 15,571
Japan:
4,123
Australia:
1,224
Korea:
1,321
Spain is the world’s 14th-largest economy and the 5th-largest economy in the EU:
GDP worth 1.2 trillion USD
Source: IMF, 2016. Data Referred to 2015
Estimated Data

2015 Spain Ukraine
GDP (BUSD at current prices) 1.199,7 90,138
GDP per capita 25,865 2,106
Population (millions) 46,4 42,8
Inflation (annual average, %) -0,6 48,7
Public debt (% of GDP) 99,2 94,0
Export of goods (in BUSD) 281,8 38,134
Import of goods (in BUSD) 309,3 37,502
4
Nombre del departamento
Source: INFORME ECONÓMICO Y COMERCIAL, UCRANIA (July 2016 edition); European Commission Database 2016, Data Referred to 2015;
CIA Database 2015
Spain and Ukraine: Macroeconomic Indicators

Market Access
Domestic market of over 46 million consumers: Spain has a GDP per capita (PPP)
above the EU-28 average.
Spain grants free access to the world´s
largest market, the European Union: more
than 500 million consumers
Advantages of operating in the EU:
 Intra-European duty-free market.
 Free movement of goods and
services, capital and persons.
 Single currency: EURO.
Capacity for consumption of goods
Country GDP per capita
RK USD
1 United States 6 55.805
2 China 76 7.990
3 Japan 26 32.486
4 Germany 20 40.997
5 UK 14 43.771
6 France 22 37.675
7 India 144 1.617
8 Italy 27 29.867
9 Brazil 74 8.670
10 Canada 17 43.332
11 Korea 31 27.195
12 Russia 69 9.055
13 Australia 10 50.962
14 Spain 32 25.865
15 Mexico 70 9.009
Source: IMF, 2016 data referred to 2015.

ICEX ESPAÑA EXPORTACIÓN E INVERSIONES6
 2016 Economic Freedom Score: 68.5 (up 0.9 point)
 Economic Freedom Status: Moderately Free
 Global Ranking: 43rd
 Regional Ranking: 20th in Europe
 Notable Successes: Open Markets and Monetary Freedom
SPAIN Economic Freedom Index, 2016
Source: Terry Miller and Anthony B. Kim, 2016 Index of Economic Freedom (Washington, DC: The
Heritage Foundation and Dow Jones & Company, Inc., 2016), http://www.heritage.org/index/
Spain

producers of Agricultural
products in Spain.
must know before entering Spanish
market

Spain´s import from Ukraine
 Ukraine is the biggest import
partner of corn for Spain. In
2015, Spain´s import from
Ukraine accounted for 525
million USD.
 Spain is one of the biggest
importers of wheat in the
world, with 5.2 billion USD of
trade value in 2015. Ukraine
is its third biggest import
partner, where the amount of
wheat import from Ukraine
accounts for nearly 129
million USD.
Source: United Nations Commodity Trade Statistics
Database, 2015
Source: United Nations Commodity
Trade Statistics Database, 2015

Spain´s import from Ukraine
 Ukraine is the largest import partner of safflower, sunflower and
cotton-seed oil for Spain. Spanish import of safflower, sunflower
and cotton-seed oil from Ukraine accounted for 161 million USD
in 2015.
Source: United Nations Commodity Trade Statistics Database, 2015

 The free trade area came into effect on 1 January 2016
 The DCFTA is entirely part of the Association Agreement (title IV). It combines:
 a standard Free Trade Agreement (duty free trade on both sides, but
phased in over 7 years, asymmetrically in favour of Ukraine)
 a "Deep and Comprehensive" part, that foresees that Ukraine will adopt
most norms and standards of the EU internal market (for industrial,
consumer, food and agricultural products), but also competition rules,
intellectual property, public procurement, services, etc.
 Its aims at reducing tariff and non-tariff barriers between the EU and
Ukraine, and therefore at facilitating trade and investments in both
directions
10
EU-Ukraine Deep and Comprehensive Free Trade Area (DCFTA)

I. It opens markets through the progressive removal of customs duties and
restrictions on services and public procurement.
II. It ensures fair competition between EU and Ukrainian firms by
safeguarding the respect of
 intellectual property rights;
 basic workers’ protection or environmental standards;
 disciplines on use of subsidies and anti-competitive behavior.
III. It lays the ground for gradual alignment of norms and standards, including
on food safety and technical regulations.
11
The DCFTA contains three major pillars:

Texts of the AA/DCFTA
http://eeas.europa.eu/ukraine/assoagreement/assoagreement-2013_en.htm
European Commission "Export Helpdesk"
http://exporthelp.europa.eu/thdapp/index.htm
12
Where to get information on tariff?

producers of Agricultural products in
Spain.
must know before entering
Spanish market

UKRAINE
Regl. 2015/2081
common wheat
products
barley
products
maize products
Quota n° 09.4306 Quota n° 09.4307 Quota n° 09.4308
950 000 250 000 400 000
1. Quotation
For Ukraine:
 Tariff quotas are managed by the European Commission's Directorate of
Taxation on a 'first-come first-served' basis.
 The rate of import duty within the tariff quotas is set at EUR 0 per tone,
over the tariff quotas – 12-15 EUR per tone.
Source: European Commission, 2016

In order to export agricultural products to Spain, the European
Union standards should be met:
 technical requirements to protect consumers (Product safety,
Technical standardization, Packaging and Labelling);
 marketing standards concerning quality;
 environmental requirements to protect consumers and the
environment;
 sanitary and phytosanitary requirements to protect human and
animal health (Food and feed safety, Animal health, Plant health and
Public health).
2. Standards and regulations

Goods shipped to a Spanish customs area without proper import
licenses or declarations are usually subject to considerable delay and
may run up substantial demurrage charges.
Regulations establish fines for actions delaying normal customs
procedure. Fines are not very large, usually between Euros 30 and 60.
3. Import Licenses

High degree of devolution of powers
to Spain´s 17 autonomous regions
The Canary Islands have an
Economic and Tax System
(Canary Islands REF) of their own,
fully approved by the EU, which fulfils
all the requirements of international
fiscal transparency.
4. Special territories

ICEX ESPAÑA EXPORTACIÓN E INVERSIONES18
 Canary Islands REF provides the
possibility of benefiting from a
reduced 4% Corporation Tax and
takes up the conventions for the
avoidance of double taxation
signed by Spain.
Source: KPMG, 2015
% EU corporate tax rates

Misunderstanding rooted in cultural differences present
the greatest obstacle to productive cross-border
collaboration.
Language: potential problems include mistranslation,
inappropriate messaging, lack of understanding of local
customs and differences in taste.
5. Language and Culture

902 349 000www.icex.es 902 349 000www.icex.es
Contact us
Economic and Commercial Office
Embassy of Spain in Ukraine,
Klovsky uzviz 7a, 15-th floor, 01021 Kiev, Ukraine
Tel: (+380) 44 280 53 63 / 64
E-mail: kiev@comercio.mineco.es
http://ucrania.oficinascomerciales.es

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