Ukraine and Singapore to negotiate Free Trade Agreement

JOINT STATEMENT UKRAINE AND SINGAPORE TO NEGOTIATE FREE TRADE AGREEMENT

Ukraine and Singapore have launched negotiations for a bilateral Free Trade Agreement (FTA). The Ukrainian Delegation will be led by the Deputy Minister of Economy of Ukraine, Mr. Valerii Piatnytsky. Mr. Ravi Menon, 2nd Permanent Secretary (Designate) from the Ministry of Trade and Industry will lead the Singapore Delegation. Both sides held consultations in Singapore on 7 and 8 May 2007 to work out the scope of the FTA.

The launch of the FTA is testament to the growing economic relations between the two countries. The FTA will increase bilateral trade and investment, and provide greater confidence for investors and businesses. Key elements of the FTA will include measures to liberalize trade in goods and services and the investment regime, simplify customs procedures, enhance competition, open up government procurement, cooperate in the protection of intellectual property rights, sanitary and phytosanitary measures and technical barriers to trade, and other general provisions. The FTA will also lay a strong foundation for cooperation in other areas of mutual interest.

Ukraine is an emerging economy rich in natural resources, especially metals. Its economy grew by 7% in 2006. Ukraine was Singapore’s 55th largest trading partner in 2006, with total trade amounting to S$774 million. Bilateral trade more than doubled from 2002 to 2006. Singapore-based companies with a presence in Ukraine include Delta Exports, a steel and commodity trader; Food Empire, an F&B company; Wilmar Trading, an agribusiness group and Sitra Holdings, a furniture distributor. An Investment Guarantee Agreement (IGA) and an Avoidance of Double Taxation Agreement (DTA) were signed between the two countries in September 2006 and January 2007 respectively.

MINISTRY OF TRADE AND INDUSTRY, SINGAPORE

MINISTRY OF ECONOMY OF UKRAINE

8 MAY 2007