Ukraine is a significant and influential trade country regarding trade in iron, steel, and gas to Asia and Europe. Ukraine’s major exports are semi-finished iron ($3.03billion), iron and steel are $ 13.1 billion, which is 19.9% of total exports. Azovstal Steel Plant of Ukraine has world recognition in the steel industry regarding billets and steel slabs. Ukraine exports 50% of the global neo gas requirement to manufacture semiconductor chips. Ukraine has appealed to European Council to consider him a full member of the European Union, and the council had supported it.
DCFTA:
European Union & Ukraine has an agreement; the Deep & Comprehensive Free Trade Area (DCFTA) has been effective since 2016. EU & Ukraine has become essential partners. Ukraine’s 40% of trade is with the EU. EU was the largest market for Ukraine, China was the 2nd, and Russia stood 3rd before the war. In 2021, Ukraine’s exports to European Union were 87% and valued at € 24.1 billion; European Union exports to Ukraine were € 28.3 billion, while total trade between the two was € 52.4 billion. EU exports to Ukraine mainly transport equipment, machinery, and manufactured products.
FDI:
Foreign Direct Investment (FDI) had risen from € 18.8 billion to € 25.8 billion in 2020, and the 2800 exporting firms in Ukraine had increased from 2015 to 2019.
Standards:
Before the war, Ukraine had to resolve a few issues due to which Ukraine was not a full member of the EU, i.e., corruption, trade facilities, customs, and labor standards. Ukraine has required15-standards to achieve a good position in the EU regarding the above-stated issues. European Council has forwarded the application to the European leader to have Ukraine as a full member on standards. One member said Ukraine is doing well, but it requires years to fulfill the targets.
Iron & Steel:
Mariupol is the most important for supplying iron, steel & coal to the Middle East. Azovstal Steel Plant had occupied by Russia on 16th May 2022. The transport hub of Ukraine is Odesa Port on the Black Sea, with 43 million tons of cargo transported per year.
Effects of Ukraine as a Full Member of the EU:
By accepting Ukraine as a full member of the European Union
- Foreign Direct Investment will increase due to the confidence of investors will increase.
- The provision of Iron & Steel raw materials in Asia and Europe will increase.
- The metal and mining industry will flourish.
- Employment in Ukraine will increase.
- Globally trade will increase.
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