Share
Ukraine should seek for an increase in existing quotas for exports to the European Union, simultaneously using those that have already been allocated. The situation is the following: the quotas for maize and honey have completely been taken up in the past 1.5 months in 2016 as the grain quotas is almost over and Ukrainian producers of many other commodities are much less active. In addition, our exporters will have to diversify products they supply onto EU markets by increasing shipments of goods with a high degree of processing and value added commodities. This opinion was expressed by President of the Ukrainian League of Industrialists and Entrepreneurs Anatoliy Kinakh in an interview with TV Channel "Rada."
"The EU is a very attractive partner to Ukraine, and it is a huge financially reliable market for our exporters. The free trade area launched at full capacity early this year of course encourages Ukrainian producers to improve their own competitiveness and the quality of products, and develop effective strategies for entering the EU markets. Exactly these moments should become the focus of the attention of the state, businesses, companies, as the existing capabilities are not fully used," he said.
He believes the adoption of programs that will let producers get adjusted to EU technical standards and regulations has now become urgent more than ever. Industrialists and entrepreneurs have repeatedly drawn the attention of the country's leaders to this issue, offering assistance in this matter. If the quality of Ukrainian-made products improves and they become more competitive, trade will grow and there will be more incentives for the production of value-added goods in Ukraine.
"We have learnt how to trade in raw materials and farm produce. But, firstly, prices in commodity markets tend to have declined in recent years, and the quotas that have been allocated to Ukraine are over within a few months. Products with a low degree of processing cannot prevail in exports, especially from a country with such industrial and manufacturing capacities as ours. Therefore, we must strengthen the technological, innovative component of the national economy to produce value-added products and market them in the EU," the leader of the Ukrainian business community said.
Since the beginning of the current year Ukraine has used its 2016 duty-free quotas for shipments of honey, juice and maize to the European Union. The barley quota is almost over (by 90%), those for barley cereals and flour have been taken up by 63%, sugar by 62%, and wheat by 55%. The EU allocated quotas for 36 types of products (poultry, cereals, flour, honey, dairy products and powered milk, mushrooms, etc.) to Ukraine in total. Once a quota has been taken up, exports are subject to export duties.