**Ukraine’s Export Potential: A Breakthrough in EU Integration**
A groundbreaking study has been conducted to identify the most promising sectors for Ukrainian small and medium-sized enterprises (SMEs) to export goods and services to the European Union. The project, “Better Market Connectivity of Ukraine to the EU,” was implemented by Civitta Ukraine and EasyBusiness, with the support of the European Union and the German Government.
**Top 5 Sectors with Potential for EU Integration**
The study identified five sectors that have the greatest potential for export to the EU:
1. **Food products**: With an annual growth rate of +19%, Ukrainian food products are in high demand in the EU, even during wartime.
2. **Wood processing and furniture**: Ukrainian wood products, such as veneer and fuelwood, are highly valued in EU countries.
3. **Electrical equipment**: The growing demand for complex electrical equipment in Central Europe presents opportunities for Ukrainian exporters.
4. **Textiles**: With over 1,000 SMEs in the industry, Ukraine’s textile sector has a strong potential for growth in the EU market, particularly for workwear, sports textiles, and handmade elements.
5. **IT and ICT**: The IT sector is a significant contributor to Ukraine’s export potential, with $5.5 billion in gross value added (GVA) and 40% of all service exports to the EU coming from this sector.
**EU Markets: Top Five Countries for Ukrainian Exports**
The study also identified the top five EU countries that favor goods from Ukraine:
1. **Netherlands**: Due to extensive re-export opportunities.
2. **Poland**: Geographic proximity makes it an attractive market for Ukrainian exporters.
3. **Germany**: Values IT services and industrial goods.
4. **France**: Diverse products are in demand, making France a promising market for Ukrainian exporters.
5. **Italy**: Extensive re-export opportunities make Italy a key market for Ukrainian goods.
**Project Implementation: A Success Story**
The project’s practical components included:
1. Identification of leading clusters and industry associations in five priority sectors.
2. Training for industry associations/business networks to promote Ukrainian goods and services in EU markets.
3. Organizing participation of Ukrainian SMEs in international trade events, with trips to Poland, Germany, Sweden, Finland, and France.
The project’s results are impressive:
1. 4 visits to industry exhibitions organized
2. 250+ meetings held
3. 19 networking partnerships created
4. 50+ export connections established for Ukrainian SMEs in priority sectors
**A Panel Discussion: The Role of Industry Associations and Clusters**
A panel discussion titled “The Role of Industry Associations and Clusters in Economic Integration into the EU Single Market” was held during the event, featuring government representatives, international partners, business associations, and experts. A separate group workshop titled “Top 5 most promising sectors of Ukraine: brainstorming of perspective solutions for integration into the EU Single Market” also took place.
**Conclusion**
The study’s findings provide a breakthrough in understanding Ukraine’s export potential to the EU. The project’s success demonstrates that with the right support and collaboration, Ukrainian SMEs can tap into new markets and establish themselves as significant players in the EU single market.
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References:
* The international cooperation program “EU4Business: SME Recovery, Competitiveness, and Internationalization” is co-financed by the European Union and the German Government and implemented by GIZ.
* www.eu4business.org.ua
