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In February, trade turnover between the two countries decreased by 13.3% compared to January and reached $698.54mn. Exports from China fell by 32.7% (to $221.25mn), imports from Ukraine remained virtually unchanged and amounted to $477. 28mn.
Ukraine is the leading supplier of corn to China. According to the General Administration of Customs of China statistics, this agricultural product in terms of value accounted for almost half of China’s imports from this country. Other Ukrainian goods purchased by China include sunflower and rapeseed oil, barley, ferronickel, beef, soybeans, other food products, raw materials, and semi-finished products.
The main items of Chinese exports to Ukraine include consumer goods, electric vehicles, lithium batteries, tires for buses, trucks and cars, smartphones, television equipment.
According to the General Administration of Customs of China, in 2022, the volume of Chinese-Ukrainian trade fell by 60% to $7.65bn. In 2023, it fell by 10.8% to $6.81bn.
The European Parliament supports a one-year extension of trade liberalization for Ukraine. On March 7, members of the Committee on International Trade of the European Parliament approved the continuation of trade liberalization measures to support Ukraine and Moldova. Accordingly, from June 6, 2024, to June 5, 2025, import duties and export quotas for agricultural products from Ukraine to EU countries will be removed. At the same time, the EC is empowered to respond promptly and take measures in the event of severe disruptions in the EU market or individual countries caused by imports from Ukraine. Trade liberalization includes a mechanism for the emergency introduction of duties on particularly sensitive products, such as poultry, eggs, and sugar, in the event of their import above the average volumes from 2022-2023. It should be noted that Poland's amendments to extend restrictions and suspend imports, which can be considered if requested by at least one EU country, did not receive support. The Parliament is expected to vote on its position in the first reading at a meeting next week.
Ukraine signs agreement with Turkey simplifying bilateral trade. Ukraine’s Defense Minister Rustem Umerov and Turkish Trade Minister Omer Bolat signed the document after the meeting of President Volodymyr Zelensky and his Turkish counterpart Recep Tayyip Erdogan in Istanbul on March 8.
How will Poland’s total embargo on Ukrainian farm imports affect Ukraine? Poland is confidently moving toward a complete, indefinite embargo on Ukrainian food. The NBU reports that exports of food products to Poland last year amounted to $1.8B, or 8% of total food exports. However, Poland is not a key market for most Ukrainian food. In 2023, Ukrainian food exports to Poland decreased by 67% to $1.754B. Yehor Kiyan, an economic analyst, adds that, generally, Ukraine imports more from Poland than it exports and exports its agricultural products mainly by sea. Therefore, the loss of the Polish market will not significantly affect grain exports. However, protests at the border prevent the passage of other goods. Consequently, Ukraine must reduce tensions on the border, even at the cost of grain export restrictions. At the same time, vegetables and fruits may also be restricted. However, it is possible to establish direct supply lines to final sales markets in the long term, bypassing Poland, bringing Ukrainian producers more profit and increasing competition between Polish and Ukrainian products in the EU, Britain, and the US.
Ukraine open to restrictions on EU trade to defuse tensions. Kyiv is open to trade restrictions with the EU to defuse tensions with Warsaw but urges bloc-wide import bans on Russian grain, Ukraine's Deputy Economy Minister
43 UKRAINE Country Report April 2024 www.intellinews.com