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Ukraine

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Introductory informationSurface Area: 603,6 1000 sq km Population: 45,5 Millions of inhabitants - 2010 (estimates after 2008)Current GDP: 102,9 Billions of euros - 2010 (estimates after 2009)GDP per capita: 2.262,7 Euros

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Слайд 1Ukraine
Sergey Shapar
Tanya Kovalyova
Alexander Yotik
Sergey Grin

UkraineSergey ShaparTanya KovalyovaAlexander YotikSergey Grin

Слайд 2Introductory information
Surface Area: 603,6 1000 sq km
Population: 45,5 Millions

of inhabitants - 2010 (estimates after 2008)
Current GDP: 102,9 Billions

of euros - 2010 (estimates after 2009)
GDP per capita: 2.262,7 Euros - 2010 (estimates after 2008)

Exports-to-GDP ratio: 36,1 % (2010)
Imports-to-GDP ratio: 43,5 % (2010)
Trade-to-GDP ratio: 79,7 % (2010)
Introductory informationSurface Area: 603,6 1000 sq km Population: 45,5 Millions of inhabitants - 2010 (estimates after 2008)Current

Слайд 3Introductory information

Introductory information

Слайд 4Export of goods
ferrous metals and nonferrous metals
fuel and petroleum products

chemicals, machinery and transport equipment
food products

Export of goodsferrous metals and nonferrous metalsfuel and petroleum products chemicals, machinery and transport equipment food products

Слайд 5EXPORTS OF SERVICES
Transportation
Travel
Construction services
Financial services
Communication services
Insurance services
Computer and information

services
Royalties and license fees
Advertising, market research
Research and development
Architectural, engineering and

other technical services
Legal, accounting, management consulting and public relations
Agricultural, mining and on-site processing services
Government services
Other services
EXPORTS OF SERVICESTransportationTravelConstruction servicesFinancial services Communication servicesInsurance servicesComputer and information servicesRoyalties and license feesAdvertising, market researchResearch and

Слайд 6Exports of goods and services (% of GDP)
Exports-to-GDP ratio: 36,1

% (2010)

Exports of goods and services (% of GDP)Exports-to-GDP ratio: 36,1 % (2010)

Слайд 7Import
Energy
Machinery and equipment
Chemicals
Machinery and transport equipment
Textile and clothes
Other products



Import EnergyMachinery and equipment ChemicalsMachinery and transport equipmentTextile and clothesOther products

Слайд 8Agricultural products
Ukrainian import
Fuel and mining products
Chemicals
Machinery and transport equipment
Textile and

clothes
Other products
Millions of euros

Agricultural productsUkrainian importFuel and mining productsChemicalsMachinery and transport equipmentTextile and clothesOther productsMillions of euros

Слайд 9Import to Ukraine from EU

Import to Ukraine from EU

Слайд 10Ukraine has more than 50 import partners
Most of them are

the countries of post USSR union

The major Ukrainian import partners

Ukraine has more than 50 import partnersMost of them are the countries of post USSR unionThe major

Слайд 11The major Ukrainian export partners

The major Ukrainian export partners

Слайд 12  Ukraine’s Foreign Trade in Goods, 2010

  Ukraine’s Foreign Trade in Goods, 2010

Слайд 13Dynamics of Ukraine’s Foreign Trade in Services (2005, 2010)

Dynamics of Ukraine’s Foreign Trade in Services (2005, 2010)

Слайд 14Ukraine’s Foreign Trade in Goods, 2010

Ukraine’s Foreign Trade in Goods, 2010

Слайд 15Exports of Services (2009, 2010)

Exports of Services (2009, 2010)

Слайд 16Imports of Services (2009, 2010)

Imports of Services (2009, 2010)

Слайд 17Changes in import
millions of euro, %

Changes in importmillions of euro, %

Слайд 18Changes in Export Trade with the European Union

Changes in Export	 Trade with the European Union

Слайд 19Changes in Export Trade with the World

Changes in Export Trade with the World

Слайд 20The result of two-year membership in WTO

The result of two-year membership in WTO

Слайд 21The second year of Ukraine’s WTO membership is understood to

consist of the period from June 2009 through May 2010,

however, only statistical reports on foreign trade as of March 2010 inclusive was available
The second year of Ukraine’s WTO membership is understood to consist of the period from June 2009

Слайд 22Commodity structure
of export

Commodity structure of export

Слайд 23Trends featuring reduction of ferrous metal products’ share in export,

seen in the first year of Ukraine’s WTO membership, continued3.

In particular, the share decreased by 6% during the second year as compared to the first membership year– down to 32% in the export structure. During 2005-2008, export supplies of metal products were within 41-43%.

METAL PRODUCTS

Trends featuring reduction of ferrous metal products’ share in export, seen in the first year of Ukraine’s

Слайд 24 Agriculture is the only sector in

Ukraine demonstrating growth during the financial and economic crisis: for

example, gross output growth in 2009 was 0.1% year-on-year. All other sectors demonstrated production decline indicators. Positive results of agricultural operations became possible due to successful export activities as well.

Agricultural products

Agriculture is the only sector in Ukraine demonstrating growth during the financial and

Слайд 25Industrial products
The country’s industrial development is determined by the share

of this sector’s products in the general structure of export

deliveries. Ukraine’s industry lost almost a half of its capacity during 1995-1999; for example, industrial output index was within 49-51% in that period if we take the 1990 figure as 100%. Such trends adversely affected competitiveness of Ukrainian-made industrial products at the global markets.
Industrial productsThe country’s industrial development is determined by the share of this sector’s products in the general

Слайд 26Chemical industry products
In the period covering the second year of

Ukraine’s WTO membership, export deliveries of chemical products dropped by

33% compared to the corresponding period of the previous year. This is the second position in terms of export volume decline after metallurgical complex products.
Chemical industry productsIn the period covering the second year of Ukraine’s WTO membership, export deliveries of chemical

Слайд 27GEOGRAPHIC STRUCTURE OF EXPORT
The geographic structure of export generally did

not change in the second year of the
WTO membership.

Like in the previous years, key consumers of Ukrainian-made goods
include the CIS countries – 35% in the structure, and the EU-27 – 24%.
GEOGRAPHIC STRUCTURE OF EXPORTThe geographic structure of export generally did not change in the second year of

Слайд 28The dynamics and structure of import commodity deliveries to Ukraine

during its
second year of the WTO membership were mainly

determined by impacts of a global
financial crisis:

industrial output decline caused a decrease in Ukrainian enterprises’ demand for raw materials and energy resources;

decreasing investment activity affected reduction in the needs for import of
machine-building products, equipment, vehicles, and other technological goods;

abrupt contraction in consumer lending and people’s income caused a decline in importation of consumer goods: household appliances, motor cars, and foodstuffs;

restricted access to financial resources necessary to carry out import transactions;

hryvnia devaluation increased the cost of imported goods.

COMMODITY STRUCTURE OF IMPORT

The dynamics and structure of import commodity deliveries to Ukraine during its second year of the WTO

Слайд 29COMMODITY STRUCTURE OF IMPORT

COMMODITY STRUCTURE OF IMPORT

Слайд 30GEOGRAPHIC STRUCTURE OF IMPORT
The global financial

crisis also affected the geographic structure of import commodity deliveries

to Ukraine. A tendency toward decrease in the CIS share, seen in the previous year, stopped ; besides, imports to Ukraine from the CIS countries in value terms declined the least as compared with other regions of the world – by 26%, whereas total import reduction amounted to 33%.
GEOGRAPHIC STRUCTURE OF IMPORT   The global financial crisis also affected the geographic structure of import

Слайд 31Internal taxes (VAT, excise)
Ensuring a national treatment concerning internal

taxation and regulation is a basic WTO principle, i.e. imported

goods shall be granted no less favourable treatment than domestic ones.
Internal taxes (VAT, excise) Ensuring a national treatment concerning internal taxation and regulation is a basic WTO

Слайд 32Customs and other import duties (% of tax revenue) in

Ukraine

Customs and other import duties (% of tax revenue) in Ukraine

Слайд 33Taxes on international trade (% of revenue) in Ukraine

Taxes on international trade (% of revenue) in Ukraine

Слайд 34Taxes on exports (current LCU) in Ukraine

Taxes on exports (current LCU) in Ukraine

Слайд 35Taxes on exports (% of tax revenue) in Ukraine

Taxes on exports (% of tax revenue) in Ukraine

Слайд 36Customs valuation, other customs formalities, and customs regulation
All regulations, formalities and

requirements related to import of goods, statistical control, documents, customs

clearance, certification, inspection and analysis, or any changes in those regulations, formalities and requirements at customs offices must be published by a WTO Member State for timely notification of importers.
Customs valuation, other customs formalities,  and customs regulationAll regulations, formalities and requirements related to import of

Слайд 37Technical barriers to trade
Applying technical regulations and standards for

non-protectionist purposes based on scientific justification and with no unnecessary

obstacles to international trade.
All national and regional standards shall be voluntary except those referred to protect national security interests, prevent deceptive practices, protect human, animal or plant life or health and environment.
Technical barriers to trade Applying technical regulations and standards for non-protectionist purposes based on scientific justification and

Слайд 38Taxes on international trade (current LCU) in Ukraine

Taxes on international trade (current LCU) in Ukraine

Слайд 39Customs Union
Ukraine’s accession to the Customs Union with Russia, Belarus

and Kazakhstan with no serious complication is possible subject to

the following conditions being met:
accession of Russia, Belarus and Kazakhstan to the WTO;
adoption by Russia, Belarus and Kazakhstan of trade tariff barriers to third-party countries at a level not higher than adopted by Ukraine when joining the WTO;
affiliation of Russia, Belarus and Kazakhstan, already as WTO members, to Ukraine’s negotiations on a free-trade area (FTA) with the EU. If Ukraine has already had a FTA with the EU at that moment, the FTA will be established on terms agreed between the five countries.
Customs UnionUkraine’s accession to the Customs Union with Russia, Belarus and Kazakhstan with no serious complication is

Слайд 40Customs Union
If Ukraine acceded to the Customs Union with Russia,

Belarus and Kazakhstan without the above-stated conditions, it would mean

the following to Ukraine:
dissolution of Ukraine’s existing agreement with the WTO and commencement of negotiations with the WTO on new terms;
complication of negotiations with the EU on a free-trade area and their postponement until Russia, Belarus and Kazakhstan join WTO.
Customs UnionIf Ukraine acceded to the Customs Union with Russia, Belarus and Kazakhstan without the above-stated conditions,

Слайд 41Market access for goods
Tariffs
10.66% for agricultural products
4.95% for

industrial goods
sugar - 50%
sunflower seed oil - 30%
Other products with

tariff ceilings of 25% include certain radio-broadcast receivers, catgut, and certain conveyor/transmission belts
Market access for goods Tariffs10.66% for agricultural products 4.95% for industrial goodssugar - 50%sunflower seed oil -

Слайд 42Market access for services
Ukraine has made specific commitments in

all 11 “core” service sectors
business services
communication services
construction and related

engineering services
Distribution
education and environmental services
financial services (insurance and banking)
health and social services
tourism and travel
Recreational
cultural and sporting services
and transport services
Market access for services Ukraine has made specific commitments in all 11 “core” service sectors business servicescommunication

Слайд 43Ukraine’s accession documents
Ukraine’s commitments on goods — a 890-page

list of tariffs, quotas and ceilings on agricultural subsidies, and

in some cases the timetable for phasing in the tariff cuts
Ukraine’s commitments on services — a 40-page document outlining the services in which Ukraine is giving access to foreign service providers on a non-discriminatory basis and any additional conditions, including limits on foreign ownership
The Working Party report — a 240 page document describing Ukraine’s legal and institutional set up for trade, along with commitments it has made in many of the areas covered by the report.
Ukraine’s accession documents Ukraine’s commitments on goods — a 890-page list of tariffs, quotas and ceilings on

Слайд 44Merchandise exports: USD38.368 billion
Merchandise imports: USD45.035 billion

Merchandise exports/imports
(2006)
Services

exports/imports
(2006)
Commercial services exports: USD10.671 billion
Commercial services imports: USD8.484

billion
Merchandise exports: USD38.368 billion Merchandise imports: USD45.035 billion Merchandise exports/imports(2006)Services exports/imports(2006) Commercial services exports: USD10.671 billion Commercial

Слайд 45Trends in foreign trade in goods
during two years of Ukraine’s

membership
in the WTO

Trends in foreign trade in goodsduring two years of Ukraine’s membership in the WTO

Слайд 46Geographical structure
of export
the largest supply decline was to the Americas

– by 55%
the lowest decrease was in supplies from

Asia – by 14%;

Geographical structureof exportthe largest supply decline was to the Americas – by 55% the lowest decrease was

Слайд 47Geographical structure
of import
The biggest decrease was from USA – by

50%
The least of all from the CIS – by 26%

Geographical structureof importThe biggest decrease was from USA – by 50%The least of all from the CIS

Слайд 48high yields of grain and oil-bearing crops in 2008-2009;
favourable pricing

environment at global markets;
hryvnia devaluation in 2008-2009 also improved competitiveness

of Ukrainianmade
agricultural products;
due to the financial crisis, freight rates became substantially lower than before
the crisis;
lifting and non-introduction by the Ukrainian government of new quantitative
export restrictions for agriculture that do not comply with the WTO
requirements.

Reasons for the lowest decline
of export supplies

high yields of grain and oil-bearing crops in 2008-2009;favourable pricing environment at global markets;hryvnia devaluation in 2008-2009

Слайд 49Reasons of dynamics of import:
decreasing investment activity affected reduction in

the needs for import of
machine-building products, equipment, vehicles, and other

technological goods;
industrial output decline caused a decrease in Ukrainian enterprises’ demand for
raw materials and energy resources;
abrupt contraction in consumer lending and people’s income caused a decline in
importation of consumer goods: household appliances, motor cars, and foodstuffs;
restricted access to financial resources necessary to carry out import transactions;
hryvnia devaluation increased the cost of imported goods.

Reasons of dynamics of import:decreasing investment activity affected reduction in the needs for import ofmachine-building products, equipment,

Слайд 50Ukraine takes active part in the work of the WTO

committees and subcommittees
Committee on Technical Barriers,
Committee on Intellectual Property (TRIPS),
meetings of

the Council for TRIPS,
Committee of Import Licensing,
Committee for Regional Trade Agreements,
Committee for Customs Valuation,
Committee for Balance of Payments,
Committee for Government Procurement,
Committee for Agriculture.

Ukraine takes active part in the work of the WTO committees and subcommitteesCommittee on Technical Barriers,Committee on

Слайд 51Promising measures
Promotion of export of Ukrainian-made products to foreign markets,

drafting a law on financial support for export (export insurance

and lending);
expanding a range of Ukrainian export goods by increasing supplies of hi-tech products;
establishing a wide-scale information system on foreign trade, and encouraging small and medium-size business to export activities;
carrying out state monitoring of global prices in certain commodity markets as well as monitoring and forecasting of conditions in domestic and foreign markets of industrial and agricultural products and providing information to enterprises;
ensuring reformation of the national system of technical regulation according to the WTO and EU requirements;
increasing the expert level of domestic business associations, and intensifying their participation in the WTO activities.

Promising measuresPromotion of export of Ukrainian-made products to foreign markets, drafting a law on financial support for

Слайд 52Thank you for attention!

Thank you for attention!

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