In early November this year China has initiated creation of the Free Trade Area with Ukraine. Which products have the greatest prospects for increasing supplies?

Dynamics of the recent years shows the significant revival of trade between our countries. Over the last 5 years, export of agricultural products from Ukraine to China increased by 12 times, from USD 103 million in 2011 to USD 1,240 million in 2015. Ukraine's share in agricultural import to China increased from 0.1% in 2011 to 1.63% in 2015.

Grain crops have been the driver for export growth. In particular, China is actively buying Ukrainian barley and wheat. The corn is also in great demand and its supplies has increased almost by 21 times starting from 2013. Along with the development of trade in raw materials, the supplies of processing products are actively growing. Export of wheat flour increased from USD 0.3 million in 2011 to approximately USD 17 million in 2015. Since last year Ukraine has started to export starch and malt to China. The significant share in supply is occupied by oil, mainly by sunflower oil, export of which over the last 5 years has increased by 4.7 times. The supply of soybean and rapeseed oil increased as well.

In January - August 2016, comparing with the same period of 2015, Ukraine managed to increase supply of soybeans (+ USD 1,013 thous., whereas the export has actively commenced only since the previous year), milk whey – by 2.8 times (+ USD 804 thous.) and mineral water - by 2.5 times (+USD 436 thous.).

In recent years in China there is a growing demand for nuts, import of which increased by 2 times (+ USD 280.6 mln.); berries (including cranberries and blueberries) – increase of import by 2.3 times (+ USD 1,115 thous.); confectionery – by 2.6 times (+ USD 423 thous.); wine – by 42% (+ USD 603 thous.).

The above-mentioned industries and products are perspective for further expanding volumes of supplies, since in Ukraine there is a potential to increase exports and in China there is a growing demand. At the same time, the supplies of fish and shellfish as well as citrus, spices (mainly ginger), juices and extracts of coffee or tea can be increased from China to Ukraine.