RESTRICTED
WORLD TRADE WT/ACC/UKR/37
11April 1997
ORGANIZATION(97-1530)
Original: English
ACCESSION OFUKRAINE
Communication from Ukraine
Thefollowing information onforeign trade inservices ofUkraine in1995 -1996 hasbeen
received from theMinistry forForeign Economic Relations andTrade ofUkraine.
_______________
Foreign trade inservices ofUkraine in1995-1996
According tothecalculations, which take intoconsideration supplies ofnatural gasandoil
through pipeandtubesystems andservices oftransport thereof through thecustoms territory ofUkraine,
theturnover offoreign trade ofgoods inmaterial andimmaterial form (services) in1996 was
$37.969 million, which exceeds the1995 level by$6.188 million orby19.5%. Itisworth mentioning
thattotal turnover offoreign trade in1996 exceeds the1994 figures by$11.0 billion (40.6%).
Ingeneral theturnover in1996 oftrade ingoods inmaterial form accounted for84.6% and
trade ingoods intheform ofservices for15.4%.
Thetotal turnover offoreign economic services inUkraine in1996 was$5.534,1 million, with
exports accounting for$4.746,6 million andimports for$787,5 million andapositive balance of
$3.959,1 million. Ifcompared with theresults of1995 thetotal turnover offoreign economic services
inUkraine hasgrown by$2.281,5 million thatis1,7times. Exports grew by$2.125,1 million or
1,8times andimports $156,4 million and1,2times respectively. Ifcompared with previous years,
thelastthree years show consistent growth ofturnover offoreign trade inservices, asshown inthe
Diagram 1.Compared tothelevel of1994 theturnover oftrade inservices grew almost 3,5times.
Diagram 1.Dynamics ofturnover oftrade inservicesWT/ACC/UKR/37
Page 2
Theanalysis ofthestructure oftrading partners shows thattheFormer Soviet Union countries
have thelargest share, 69.7% ($3857.9 million), ofthetotal turnover offoreign economic services
(export $3490.8 million, import $3670.7 million). Among theFormer Soviet Union countries thelargest
suppliers andconsumers ofUkraine ’sservices aretheRussian Federation, Belarus andMoldova (export
$3333.5, 57.8, 34.7 million, import $3101.3, 14.1, 12.4 million respectively). Among theFormer
Soviet Union countries, in1995 Ukraine hadanegative balance oftrade inservices only with Latvia
(-$1.0million). In1996 ithadanegative balance with Latvia (-$3.5million) andLithuania
(-$5.1million.).
Thefollowing trends inmodification ofthestructure oftrading partners ofUkraine inservices
arealsoworth mentioning. There isatrend ofincrease ofshare oftheFormer Soviet Union countries.
In1994 thisshare was25.6%, in1995 itwas58.9%, in1996 almost 70% ofthetotal turnover of
foreign economic services. Theorientation totheclosest neighbouring States ismainly duetothe
problemofaccesstotheworldmarkets.Therefore,theformulationofaneffectiveandbalancedproposal
ofUkraine concerning theaccess tothemarket ofservices isextremely important atthepresent stage
ofUkraine ’saccession, andwillmake itpossible forUkraine totake thebestadvantage from the
integration intotheworld markets ofservices.
Ascompared with other countries oftheworld, thetotal turnover offoreign economic services
in1996 amounted to$1676.3 or30.3% ofthetotal turnover ofUkraine. Export was$1255.8 mwhile
import was$420.5 million. Themajor trading partners ofUkraine intrade inservices in1996 were
theUnited Kingdom (export $93.3 million, import $34.9 million), Germany (export $88.1 million,
import $33.1 million), United States (export $88.4 million, import $28.8 million), Austria (export
$51.3 million, import $15.3 million). Thenegative balance wasonly with Spain, Slovak Republic
andUnited Arab Emirates.
Themajor trading partners ofUkraine andtheir share intheforeign trade turnover ofservices
(inthepartofother countries) isshown indiagram 2.
Diagram 2
Ifwecompare thisdata to1995 weseesome changes inthestructure oftrade partners of
Ukraine.WT/ACC/UKR/37
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Together with growing turnover oftrade inservices with Germany andtheUnited States there
isadramatic growth ofinterest fortrade inservices with Ukraine from such countries asUnited
Kingdom, Austria, Switzerland.
Besides, after acertain decline in1995 theamount oftrade inservices with Bulgaria andPoland
asclosest partners intheCentral Europe increased again.
Theturnover oftrade inservices with Italy decreased.
Theoverall dynamics offoreign trade inservices in1994-1996 with major trade partners is
displayed inDiagram 3.
Diagram 3
Inthestructure ofservices in1996 themajor percentage accounted fortransport services,
$4.307,4 million or77,8%, professional services, $377,8 million or6,8%, communication services,
$256,8 million or4,6%, construction services, including maintenance andrepairing, $217,1 million
or3,7%,touristservices,$111,0millionor2,0%andresearchanddevelopmentservices,$107,7million
or1,9% respectively. Despite consistent interest intheinsurance andbanking services their percentage
accounts only forasmall partofforeign trade inservices, 0,5% and0,4% respectively.
Analyzing thedynamics ofmajor types ofservices rendered, onecansaythattheturnover
oftransport andprofessional services increased almost 2times compared to1995, ofconstruction
services, 1,3times. Turnover ofcommunication services decreased 1,5times (compared to1995).
Also there isatrend fordecrease offoreign trade inbanking services, almost 1,8times.
Inthestructure oftransport services, asthemost significant partofforeign trade inservices
ofUkraine, there isatrend forincrease ofservices ofpipe andtube andrailway transport. In1995
their share was50,5% and6,2%, andin1996 65,4% and10,9% respectively ofthetotal turnover
oftransport services. There isalso atrend foralmost 2times decrease oftheshare ofmaritime
transportation from 31% in1995 to15,7% in1996.WT/ACC/UKR/37
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Theoverall structure oftransport services isshown inDiagram 4.
Diagram 4
Amongst other services (besides transport services) professional services accounted fora
significant share inforeign trade inservices. These arelegal, accounting, management consulting,
architecture, engineering andother technical services, including allother business services. This is
mostly caused bythegrowing interest inthisservices inUkraine andtheincrease ofturnover of
professional services was2times compared to1995.
Communication services also account foraconsiderable partofturnover, despite material
decrease (1,5 times) from theprevious year.
Theshare ofconstruction services isconsistently growing. However, despite thepermanently
growing turnover inthisfield, investments here arestillinsufficient.WT/ACC/UKR/37
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Theoverall structure offoreign trade inbasic services (besides transport) in1996 isdisplayed
inDiagram 5.
Diagram 5.
Thus, inorder toestablish anefficient andwellbalanced structure offoreign trade inservices
Ukraine prepared itsproposal regarding access totheservice market, which allows Ukraine toget
integrated intotheworld services markets with both parties -Ukraine andWTO members -benefitting
greatly.