The USDA is offering this grant to empower Ukrainian agricultural associations in trade policy.

Program Overview

Background

As Ukraine harmonizes their regulations to EU standards under the Deep Comprehensive Free Trade Area (DCFTA), Ukraine runs the risk of introducing trade barriers that could negatively impact U.S. agricultural trade and limit global market access. The DCFTA is an integral part of the EU’s Association Agreement. Ukraine also lacks adequate institutional knowledge and resources to reform their animal health, plant health, and food safety regulatory systems. If Ukraine fully harmonizes its regulations along EU standards, some U.S. agricultural products would likely lose market access. This situation gives the U.S. an opening to help guide Ukraine through the approximation process, in order to find solutions that are favorable to Ukraine’s, and the United States’ trade interests, while also voicing USDA’s concerns about how some of the EU’s non-scientific based SPS requirements may potentially limit Ukraine’s competitiveness and access to global markets. These capacity building efforts will also serve to strengthen Ukraine’s obligation to meet World Trade Organization (WTO) science-based requirements.

Cross-sectoral decentralization, based on the European Charter of Local Self-Government, began in 2014 to give regional and city governments greater authority to further shape democratic and market-oriented reforms, and improve governance and public administration with input from local business communities. On the national level, new private sector leaders have emerged, heralding a new Ukrainian economy – one that emphasizes innovation and investment in Ukraine’s future. As a result, businesses have begun to recognize the need for collective action with other business associations and professional organizations at the national and regional level.

Within Ukraine, the lack of representation among agricultural associations means that an important voice is lost when legislation is drafted, as only those organizations with pre-existing relationships can advocate on their behalf. The inability of small and medium-sized businesses to express their concerns about the risks and challenges they face on a national level leaves Ukrainian legislators with an incomplete picture of the challenges faced by the agricultural sector. By strengthening the Ukrainian associations, not associated with their incorporated businesses, USDA can help give small and medium-sized enterprises the opportunity to express their concerns with the approximation process, as well as their desire to continue to trade with a wider market.

The project’s approach equips government officials and the business community with complementary tools to promote and implement science based and internationally recognized standards. The project’s longer-term goal is to institutionalize feedback mechanisms among Ukraine’s agricultural sector and regional and national governments. By enabling the agricultural community to better influence Ukrainian legislators, we ensure that Ukrainian businesses can make clear the impact of legislation on all aspects of Ukrainian agricultural trade, and secure Ukraine’s ability to maintain their trade relationship with the United States.

Objectives

• To identify Ukrainian agricultural associations with high potential for growth and impact, specifically in regard to collective action;
• To improve the technical capacity of leading agricultural associations in Ukraine;
• To develop Ukrainian association capacity to monitor and comment on draft legislation to ensure Ukraine’s alignment with WTO science-based standards;
• To engage with U.S., and regional associations within the same sector;
• To enhance Ukrainian agricultural association influence and access in both regional and national administrations.