israel and Ukrain updated the free trade agreement

Minister of Economy and Industry Eli Cohen signed an updated free trade agreement with his Ukrainian counterpart, Stefan Kubeiev, in the presence of Prime Minister Benjamin Netanyahu and Ukrainian President Petro Olszewicz.
The agreement includes reductions of both Israeli exports to Ukraine and imports of goods to Israel, and will improve mutual access in the goods field of both countries. Negotiations on the agreement were led by the Foreign Trade Administration in the Ministry of Economy and Industry, in cooperation with the Ministries of Foreign Affairs, Agriculture and Justice, as well as the Customs Administration.
Ukraine is among the largest cereal exporters and raw materials industry in the world. Ukraine is the world's largest exporter of sunflower seeds and cotton seeds, the sixth largest exporter of wheat and the fourth largest exporter of corn and barley in the world. In addition, Ukraine is the world's fourth largest exporter of semi-processed iron and steel used as raw materials for industry. These figures are also reflected in the composition of Israel's imports from the Ukraine.
Ukraine is an important trading partner for Israel. According to the Ministry of Economy and Industry, Israeli exports to Ukraine in 2017 amounted to $ 130 million, and the total volume of trade in 2017 was $ 940 million. According to estimates by the Ministry of Economy and Industry, exports to Ukraine in 2018 are expected to grow by about 25% to reach $ 163 million and total trade (including imports) is expected to be about $ 1 billion. The trade agreement is of great importance to the relations between the countries, the entry into force will promote bilateral economic relations and is expected to increase the volume of trade between the two countries.
The main export industries from Israel to Ukraine are chemicals (50.6%), plastics and rubber (13.9%), and machinery (9.1%),
The agreement includes trade in goods in the fields of agriculture and industry, rules of origin, standardization chapters, and a trade and environment chapter that characterizes advanced trade agreements. The agreement will come into effect after its ratification by the Knesset and the Ukrainian parliament.
With the entry into force of the agreement, a variety of products from Israel will be exempted from export customs to Ukraine. Products include plastic and rubber products, machinery, medical equipment, chemicals and fruits and vegetables such as dates, avocado, persimmon and fruit products. In addition, the agreement is expected to reduce tariffs on products imported from the Ukraine, including wheat and various agricultural products, fish, processed foods, various types of oils, iron, steel and other raw materials intended for industry, thereby helping to reduce the cost of living in Israel. The lowering of tariffs on agricultural products and processed food is expected to lead to an increase in imports and thus serve as an important message for the Israeli consumer.
Minister of Economy and Industry Eli Cohen noted: "The Ministry of Economy continues to act in favor of exporters by creating easy access to new markets and deepening presence in traditional markets. The Foreign Trade Administration of the Ministry of Economy and Industry initiates and negotiates new trade agreements of the State of Israel with the aim of promoting local industry in the world markets while providing a competitive advantage to Israeli manufacturers, and deals with the ongoing maintenance of these agreements.
Today, about 67% of the international trade of the State of Israel is conducted under free trade agreements. Ukraine is one of Israel's best friends and the tightening of economic relations with it is a necessary step. The signing of the Free Trade Agreement between Israel and the Ukraine will open up additional opportunities for Israeli exports in this market and will constitute a foothold for Israeli exporters in the Eastern European market. "