The implementation of an agreement on a free trade zone within the Commonwealth of Independent States (CIS) will have a positive impact on the Ukrainian economy, according to a financial and economic feasibility report on a draft law on the ratification of the Agreement on the CIS free trade zone.

The implementation of the agreement is expected to facilitate GDP growth by 2.5%, reads the document.

"Thus,...an increase in one integral indicator alone - gross domestic product - will be about UAH 37.5 billion. An additional increase in receipts of the national budget could amount to around UAH 9.4 billion per year," reads the report.

In particular, the report states that an additional growth in agriculture could be 3.86%; in the food industry 3.36% (due to the high level of cooperation and removal of sanitary and phytosanitary barriers and the abolition of antidumping measures in mutual trade); in the light industry by 3.11% (by clearing access of Ukrainian commodities to the CIS markets); steel making and production of ready-made metalware by 4.2% (due to the elimination of export duties, including those on fuel and better access of goods to the CIS markets); in the chemical and petrochemical industry by 4.75% (by increasing productivity in Ukraine and an increase in demand for petrochemical products, including tires and plastics); the engineering industry by 7.19% (due to the fact that Russia and other CIS states are key markets for Ukrainian goods).

"An increase in production in all the key economic activities in the case the free trade area is set up will also have an impact on the service sector: trade will additionally get 3.01% of the sector's output, transport 2.87%," reads the document.


 

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