Ukraine - Trade Agreements Ukraine - Trade Agreements
The United States has a bilateral investment treaty (BIT) with Ukraine, which took effect in 1996. The BIT guarantees U.S. investors non-discriminatory treatment, the right to make financial transfers freely and without delay, international legal standards for expropriation, including compensation, and access to international arbitration in the event of an investment dispute.
The “United States Income Tax Treaties – Convention” between the U.S. and Ukraine regarding the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and capital became effective January 1, 2001.
The United States and Ukraine signed a Trade and Investment Cooperation Agreement (TICA) on April 1, 2008. The TICA established a joint U.S.-Ukraine Council on Trade and Investment, which addresses a wide range of trade and investment issues including market access, intellectual property, labor, and environmental issues. https://usa.mfa.gov.ua/en/ukraine-us/legal-acts
On May 16, 2008, Ukraine became the 152nd member of the World Trade Organization (WTO). Upon becoming a member of the WTO Ukraine became subject to the requirements of the Agreement of the World Trade Organization on Trade Related Aspects of Intellectual Property Rights “TRIPS Agreement”.
In March 2016 Ukraine officially joined the WTO Agreement on Government Procurement. This gives Ukrainian companies the right to participate in public procurement of 45 countries participating in the WTO agreement on government procurement (GPA), including EU countries, Japan, the United States, Korea, Taiwan, Singapore, Hong Kong and Canada. In addition to opening foreign government procurement markets, this agreement will also requires Ukraine to follow WTO rules for government procurement.
Although Ukraine was one of the three founding countries and ratified the Creation Agreement in December 1991, Ukraine did not choose to ratify the CIS Charter. In 1993 Ukraine became an "Associate Member" of CIS. Ukraine has signed Free Trade Agreements (FTA) with 9 CIS countries: Armenia, Azerbaijan, Belarus, Kazakhstan, Kyrgyzstan, Moldova, Tajikistan, Uzbekistan, Russia. On March 14, 2014 a bill was introduced to Ukraine's parliament to withdraw from CIS following the annexation of Crimea by Russia.
Ukraine has a Partnership and Co-operation Agreement (PCA) with the European Union. Under the terms of the agreement, Ukraine enjoys most favored nation status with the EU, but is not required to bind its own tariffs. On March 21, 2014 the European Union and Ukraine signed the core elements of a political association agreement precursor to the Deep and Comprehensive Free Trade Agreement (DCFTCA) which they started applying on January 1, 2016. Ukraine has concluded trade agreements with 20 countries - Austria, Argentina, Armenia, Bulgaria, Canada, Estonia, Finland, Georgia, Iceland, Kyrgyzstan, Latvia, Liechtenstein, Macedonia, Moldova, Montenegro, Norway, Russia, Switzerland, Turkmenistan, and Switzerland. The Canada-Ukraine Free Trade Agreement (CUFTA) was signed on July 11, 2016 and is now ratified by the parliaments of both countries. These agreements grant, on a reciprocal basis, most favored nation (MFN) status on the exports -imports with signatory countries. As in the case of the PCA, Ukraine benefits via these agreements from the tariff concessions made by its partner countries who are WTO members without binding its own tariffs. Ukraine is negotiating the creation of free trade zones with Turkey and Israel.
Other Important U.S. – Ukraine agreements. On February 7, 2017, Ukraine signed an intergovernmental agreement implementing the Foreign Account Tax Compliance Act (FATCA), which implies that Ukraine agreed to centrally share information on U.S. accounts with IRS on a non-reciprocal basis. Ukraine will further initiate the necessary amendments to existing legislation aimed at enabling the smooth and proper implementation of FATCA. On March 23, 2017 Ukraine became the 47th country to adhere to the OECD Declaration on International Investment and Multinational Enterprises. The Declaration commits Ukraine to provide an open and transparent environment for international investment and to encourage the positive contribution foreign investment can make to economic and social progress.