News
11.12.2013
Open Appeal of Non-Governmental Professional Organizations of the Ukrainian Agro-Industrial Complex
The following non-governmental professional organizations representing agrarian business in Ukraine: European Business Association; Agrarian Union of Ukraine; Association of Farmers and Private Land Owners of Ukraine; Association “Ukroliyaprom”; Association “Ukrainian Agribusiness Club”; National Association “Ukrtsukor”; National Association “Union of Poultry-Breeders of Ukraine”; Union of Dairy Enterprises of Ukraine, Ukrainian agrarian Confederation, Ukrainian Grain Association; Association “Ukrsoya”; Corporation “Tvarynprom”; Association “Union of Feed Producers”; Association of Milk Producers; Seed Association of Ukraine; Union of Agricultural Service Cooperatives’ Members of Ukraine support the speedy signing of the Deep and Comprehensive Free Trade Agreement (DCFTA) between Ukraine and the EU.
The Associations stress that from total agrarian exports worth $18 billion USD, exports to the EU countries amounted to USD $4.8 billion USD or 27 % of total exports. According to analysts, the potential for increased exports to the EU in case of the DCFTA signing will be at least $1 -1.2 billion USD. Access to European markets will also contribute to the marketing of Ukrainian agricultural and food products on the markets of third countries.
Representatives of the agrarian sector emphasize that the negotiation process of forming the free trade parameters was conducted with active interaction of the Ministry of Agrarian Policy and Food of Ukraine and the Ministry of Economic Development and Trade of Ukraine with Ukrainian associations and business community. In this regard the majority of proposals put forward by the professional associations have been included.
The agrarian community stresses that the terms and conditions of the EU Association Agreement and DCFTA are, on the whole, advantageous for the Ukrainian agriculture sector.
For example, only through the duty-free export of grain to the EU under the expanded quotas, farmers can gain additional revenue growth in the amount of approximately 180 million euros annually.
The DCFTA envisions the possibility of a duty-free supply of cheeses, fruit and vegetable produce, vegetable oils and meals, and large array of other agricultural products to EU countries. This will allow agricultural producers to additionally diversify sales markets and provide incentives for further development of the Ukrainian agrarian sector. Ukraine also retains the ability to protect its most critical domestic commodity markets such as pork, sugar, and select dairy products through the use of import quotas and/or only partial reductions of applicable import duties.
The business community stresses the free trade Agreement provides for improvements of the regulatory environment by bringing it in line with EU legislation which will create a more favorable business climate and enable investment inflow for the further development of the Ukrainian agriculture sector. Harmonizing Ukrainian food quality and security system with the best practices of EU countries will enable better protection of food consumers’ interests in Ukraine.
The issue of signing the EU Association Agreement has been repeatedly discussed with all interested representatives of the agrarian sector of Ukraine. This move was supported during the National Round Table “Agrarian Sector of Ukraine on the way towards European Integration” chaired by the Co-Chairman of the “European Choice” Inter-Factional Union of Members of the Verkhovna Rada, the President of the Ukrainian Union of Industrialists and Entrepreneurs Mr. A.K. Kinakh. The Minister of Agrarian Policy and Food of Ukraine Mr. M.V. Prysyazhnyuk, the Head of Agrarian Committee of the Verkhovna Rada Mr. H.M. Kalyetnik, the wider agrarian community, representatives of the business and science communities as well as the Public Council of the Ministry of Agrarian Policy and Food of Ukraine participated in this Round Table.
Based on the stated above, the agrarian community expresses its confidence in the following:
First, the signed Agreement will facilitate further strengthening of economic relations, trade and investments between Ukraine and the EU and will support the Ukrainian government in implementing its reform program aimed at overcoming negative effects of the global economic and financial recession, reducing corruption and ensuring the sustainable development of the national economy.
- Macroeconomic stability;
- Opening of new markets for Ukrainian agricultural products;
- Additional investments in the Ukrainian agro-industrial complex;
- Fostering development of medium and small business in rural areas;
- Introducing the EU standards and regulations in Ukrainian agro-industry that will inevitably lead to an increase in the competitiveness of domestic enterprises;
- Supporting a positive trade balance for the country due to the agrarian sector.