Trade Deal with Ukraine Offers Opportunities to Dutch Agriculture

NETHERLANDS - A proposed free trade agreement between Ukraine and the Netherlands could benefit Dutch farmers.
calendar icon 4 September 2013
clock icon 3 minute read

Ukraine is continually increasing its focus on the EU. At present, a ‘Deep and Comprehensive Free Trade Agreement’ (DCFTA) between the Ukraine and the Netherlands is being assessed for ratification. Research by LEI Wageningen UR commissioned by the Ministry of Economic Affairs has shown that the Netherlands could benefit from this. One condition is that Ukraine harmonises its quality and food-safety standards with those of the EU, and improves the investment climate.

The trade agreement between the EU and Ukraine would help Ukraine to strengthen its institutions which is necessary to make better use of the agricultural potential. Such an agreement also results in a better entrepreneurial climate. Consequently, in addition to the current possibilities, Dutch companies could also benefit from the development potential of the Ukrainian agricultural food chain.

Ukraine could be an important raw material supplier of cereal/feed grain and oilseed, and the Dutch livestock industry and bio-energy sector could benefit as a result. Dutch export and investment opportunities also arise for many traditional export products such as dairy products, horticultural products, potatoes, as well as for suppliers of inputs and expertise.

Ukraine will also benefit from the DCFTA, as it will gain easier access to the European Union and to the markets of other countries. Ukrainian agricultural development is strongly dependent on reforms, that should result in smoother land transactions, better access to credit and increased professional expertise and skill.

With these reforms and investments in institutional improvements, the development potential of the sector is reinforced and transparency and predictability in the field of market access increase. This is favourable for the development of Dutch trade and investment relations with Ukraine.

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