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Monday, March 19, 2018

Ukraine complains that free trade with the EU has proved to be fiction

The Association with the EU Ukraine brings new surprises. It has now emerged that the duty-free trade with the EU, which Kiev wanted so, in reality was a fiction. Quotas on duty-free delivery in the EU is key for Ukraine of the goods exhausted in less than two months. But the Ukrainian market for European goods was fully open.

The results of work of the agreement on free trade zone between Ukraine and the European Union in the framework of the Association agreement with the EU to fail after just a month and a half after it started. And the result was just the opposite of what was promised euromaintenance romance.

“For a month and a half of 2016, Ukrainian enterprises have already exhausted the duty-free quotas for deliveries in the EU of corn, grape and Apple juices, honey”

From 1 January 2016 in full force earned the FTA between Ukraine and Europe, which promised free and duty-free access of Ukrainian goods to the European market. However, in practice it turned out that the Association agreement with the EU prescribed so many restrictions that the benefits and advantages received from Europeans.

The Ukrainian club of agrarian business acknowledges that for a month and a half of 2016, Ukrainian enterprises have already exhausted the duty-free quotas for deliveries in the EU of corn, grape and Apple juices, honey. Earlier it was reported that by 1 February the Ukrainian company fully used the annual quota for duty-free imports of poultry meat to the EU.

Now close to fill duty-free quotas are such commodities as barley (used 90%, to 225 thousand tons from 250 thousand tons), barley groats and flour (63%, 3.9 thousand tons, 7 thousand tons), sugar (62%, 12.4 thousand tons of 20,07 thousand tons), wheat (55%, 519 thousand tonnes from 950 tonnes), oats (45%, 1.8 tons, 4 thousand tons) and processed tomatoes (44%, 4.4 thousand tons 10 thousand tons), said in a statement.

Quota means how many Ukraine may import into the EU of goods free of duty. You can sell more, but with duties that Rob produced in Ukraine goods a competitive advantage.

Europe has allocated for Ukraine are very small quota. “For example, the grain quota is 1 million tons, and Ukraine will export 28 million tons. What is the reason? Europe itself is the biggest exporter of agricultural products, including grain,” says Ukrainian economist Oleksandr Okhrimenko.

Ukraine produces 1.2 million tonnes of chicken meat per year. While Europe has given Ukraine duty-free quota – 16 THD Plus can import duty-20 tonnes of whole frozen chicken (which is absolutely necessary to nobody). For anything beyond this quota, the duty is more than 1000 euros per 1 ton,” says Yuriy Kosyuk, the owner of the largest chicken producer in Ukraine, MHP, transmits Ukrainian Korrespondent.

Okhrimenko indicates yet another injustice. “For poultry meat, we have a quota of 16 thousand tons, but we have yet to buy from Europe 8 thousand tons of poultry meat, because Europe itself is the biggest exporter of this meat. Poland and Hungary now supply meat to Ukraine,” he says.


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