The Ukrainian Institute for the Future (UIF) presented a large-scale study "Expanding Cooperation between Ukraine and the United States: A Win-Win Strategy", which outlines the potential for deepening bilateral relations and identifies four specific areas for mutually beneficial cooperation. The task of the study, as the authors add, was to find points where countries can be equal partners, UNN reports.
The study shows that despite the existence of strategic documents, Ukraine and the United States have never been strategic partners in practice. Ukraine's share in US imports is only 0.02%, and Ukrainian exports mainly consist of raw materials. In the field of science and technology, cooperation between the two countries is mostly declarative.
"For the United States, its own interests are important, and we have studied these interests in the course of the research. The goal is to determine who we are in this game and to formulate proposals for intensifying cooperation between Ukraine and the United States in various areas that will meet the interests of both parties," said Anatoliy Amelin, UIF Executive Director.
According to the study, the most effective and successful US assistance was provided to Israel and South Korea. These countries were able to effectively use US assistance and transformed from poor countries into innovative economies with high GDP per capita. The tools used by the United States to support its allies are quite versatile and cover the military, economic, education, science and technology sectors.
Since the beginning of the Great War, Ukraine has received $95 billion in U.S. aid. However, as the Institute emphasizes, it is necessary to create conditions for increasing the complexity of the economy. In general, experts have identified four key areas for expanding cooperation between Ukraine and the United States in the next 5-10 years.
The first area is the development of critical materials. Ukraine has large reserves of minerals, which the United States defines as strategically important and on whose imports the United States is heavily dependent, including from China. The creation of a full cycle of extraction, processing and production of finished products with the participation of American investments is estimated at $2-4 billion over the next five years.
The second area is trade in mining and metals products through liberalization of import conditions for Ukrainian steel products to the US market. "Ukraine could increase its exports of mining and metals without hurting US producers, while supporting its economy and reducing its dependence on US aid," the Institute notes.
The third area is deepening cooperation in the agricultural sector. Despite Ukraine's status as a major agricultural exporter, its share in US agricultural imports is only 0.1%. The potential for increasing exports is estimated at $1-5 billion annually over the next 5-7 years. In addition, as a result of the cooperation, Ukraine's dependence on external financial assistance, in particular, US budget support, has been reduced. At the same time, increasing the depth of processing of agricultural products in Ukraine with their possible further export to the United States opens up additional opportunities for the export of American high-tech equipment and investments to Ukraine, which indicates the mutual benefits of deepening such cooperation.
The fourth area is the creation of an innovation cluster in Ukraine for the United States and its allies, which will become a platform for developing, testing new technologies and sharing experience.
The implementation of these initiatives will bring tangible benefits to both countries. The United States will strengthen its global role and economic position, and enhance security in the region. Ukraine will receive security guarantees, the status of a strategic partner of the United States, financial stability and innovative development.
"Ukraine is a leader in reserves of lithium, titanium, and a number of other elements, but we need to work on their extraction," said Serhiy Vlasenko, Deputy Minister of Environmental Protection and Natural Resources of Ukraine for Digital Development, Digital Transformation, and Digitalization, at the presentation of the study.
Vadym Prystaiko, Ambassador Extraordinary and Plenipotentiary of Ukraine to the United Kingdom (2020-2023), former Minister of Foreign Affairs (2019-2020), believes that the easiest way to work with the American economy is to open its own market. "Defense, security, space, and missile technology are obvious areas of government control. Everything else is for business to push the government," he said.
"This study is an important project for the new agenda of trade and economic cooperation, the strategic economic partnership between Ukraine and the United States. And it is very important that these narratives and ideas are picked up and supported by our government in communication with the new US presidential administration. We, as the largest business association in the country, are in favor of maximizing cooperation in order to industrialize the country and increase the added value of our key sectors," said Mykhailo Bno-Airiian, Chairman of the European Integration Committee of the Federation of Employers of Ukraine.
The authors of the study note that Ukraine has the potential to become a strong strategic partner for the United States, like Israel and South Korea. The format of cooperation can be changed from unilateral assistance to a strategy that meets the interests of both countries.
On February 5, the study is scheduled to be presented in Washington, D.C., which, according to the UIF, is important for strengthening bilateral relations between Ukraine and the United States.
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The Ukrainian Institute for the Future (UIF) is an independent think tank founded in 2016 as a joint project of representatives of Ukrainian business, politics, and the public sector. The Institute carries out analytical work in the field of forecasting changes and modeling possible scenarios for the development of events in Ukraine, providing expert assessments and practical recommendations.