Gradual integration of Ukraine to the EU’s Digital Single Market will affect the bilateral trade between Ukraine and the EU, with total Ukrainian exports of goods to the EU increasing by 11.8-17 per cent (USD 2.4-3.4 billion) and total exports of services increasing by 7.6-12.2 per cent (USD 302.5-485.5 million).
The integration will also have an effect on Ukraine’s productivity and economic growth, with the GDP increasing by 2.4-12.1 per cent (USD 3.1-15.8 billion) and household income increasing by 3.6-7.8 per cent.
These are among the key findings of the survey “Integration of Ukraine to the EU’s Digital Single Market: potential economic benefits” commissioned by the Ministry of Digital Transformation and conducted by Trade+, International Trade Research Center of the Kyiv School of Economics and the NGO Ukrainian Center for European Policy. The survey was released on December 15, 2020.
Research findings combine expert analysis and projected economic gains from the integration of Ukraine to the European Digital Single Market.
Approximation to the EU’s digital sector is paramount to decreasing trade barriers and intensifying two-way trade and economic integration with the European Union, said Deputy Minister of Digital Transformation of Ukraine Valeria Ionan presenting research findings at a news conference.
“Our strategic goal is a full-fledged integration of Ukraine to the EU’s Digital Single Market that will encourage digital transformation internally and will unlock new opportunities for both individuals and businesses. It will also foster the growth of digital economy, cross-border digital trade, and the rise of digital innovation in Ukraine. This opens the way for electronic international commercial contracts and e-invoicing, electronic cross-border payments, better access to EU’s online markets of goods and services for Ukraine’s citizens and companies, access to the European market of services for Ukrainian companies and vice versa, simplified customs and import procedures, and joint development of digital trade infrastructure,” the Deputy Minister of Digital Transformation elaborated.
“The survey that we are presenting is probably the first-of-its-kind quantitative research in Ukraine. It shows that digitalization is a powerful driver of Ukraine’s economic growth,” Valeria Ionan said.
Chloé Allio, Head of the Economic Cooperation, Energy, Infrastructure and Environment section, Head of Operations at the EU Delegation to Ukraine reassured that the European Union supports Ukraine’s strategic plans to enhance the digital agenda.
“The cooperation between the European Union and Ukraine in the digital sector takes place in the framework of the Association Agreement that provides a possibility for internal market treatment for Ukraine in the telecommunication sector, which is conditional of the legislation that Ukraine has to adopt and implement,” Chloé Allio explained.
Currently, major barriers holding Ukraine back from spurring cross-border cooperation and integration to the EU’s Digital Single Market are electronic cross-border payments and online copyright protection, the survey found.
Source: Ministry of Digital Transformation of UkraineTags: Ukraine
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