Welcome to the U.S.-Ukraine Business Council


USTR News, Office of the United States Trade Representative
Washington, D.C., Tuesday, April 1, 2008

WASHINGTON, DC - Ambassador Susan C. Schwab and Ukrainian Minister
of Economy Bohdan Danylyshyn have signed a Trade and Investment
Cooperation Agreement (TICA) that will provide a forum to address trade
issues and help build trade and investment relations between the United States
and Ukraine. Ambassador Schwab signed in Washington, and Minister
Danylyshyn signed in Kyiv.

"The agreement will provide an important tool for both parties to strengthen
the already robust trade and investment relationship between our two
countries, and will assist Ukraine's efforts to expand its economy and
diversify its markets," said Ambassador Schwab.

"As demonstrated by the World Trade Organization's recent approval of
Ukraine's terms of accession to the WTO, Ukraine is making important strides
to modernize its economy and attract foreign trade and investment. We expect
this agreement to provide a solid foundation for discussion of the full
range of trade and investment issues."

The TICA will establish a forum for discussion of bilateral trade and
investment relations and will help build those relations. The TICA provides
for the formation of a joint U.S.-Ukraine Council on Trade and Investment,
which will address a wide range of trade and investment issues including
market access, intellectual property, labor, and environmental issues.

The Council will also help to increase commercial and investment
opportunities by identifying and working to remove impediments to trade and
investment flows between the United States and Ukraine. This agreement is
substantially similar to the Trade and Investment Framework Agreements
(TIFAs) that the United States has negotiated with a number of trading

In February, the World Trade Organization approved the terms of Ukraine's
accession to the WTO. Ukraine will become a WTO Member 30 days after
the Rada (Ukrainian parliament) ratifies the accession protocol, which is
expected to occur before July 4.

President Viktor Yushchenko, Prime Minister Yuliya Tymoshenko, as well
as previous governments in Ukraine, have advocated policies of economic
liberalization and have sought closer trade relations with the United States
and the European Union. Trade and investment between the United States
and Ukraine has grown steadily in recent years.

Trade in industrial goods between the United States and Ukraine totaled $2.6
billion in 2007. U.S. goods exports to Ukraine in 2007 were $1.3 billion, up
77.4 percent ($585 million) from 2006, and up 644% from 1994.

U.S. goods imports from Ukraine totaled $1.2 billion in 2007, a 25.6 percent
decrease ($419 million) from 2006, but up 277% from 1994, while U.S. imports
of agricultural products from Ukraine stood at $20 million. U.S. foreign
direct investment (FDI) in Ukraine was $1.44 billion as of January 1, 2008.

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