4 April 2013 The Federation of Employers of Ukraine

Dmitry Firtash: Ukrainian Business Has To  Maintain And Strengthen Its Positions In Foreign Markets

Ukrainian business has to maintain its market position in countries of the Customs Union, despite the imposed protective trade barriers, said President of the Federation of Employers of Ukraine Dmitry Firtash following the meeting of the Presidium of the Board of the organization held in Kiev today.
 
In particular, Ukrainian enterprises should consider new requirements for products quality, which are going to be introduced by the countries of the Customs Union from 2015. Otherwise, the annual volume of exports from Ukraine to Russia, Belarus and Kazakhstan may go down 14.8 billion dollars, which equals 67% of current exports to the countries of the association and 18% of the total exports. About 200 thousand people can lose their jobs as a result of decrease in sales of goods to foreign markets.
 
In 2014-2015 66 technical regulations determining the quality of produced and imported products will enter into force in the countries of the Customs Union. Currently, 47 of them have already been drafted.
 
“Ukrainian industry should painlessly pass the period of new Customs Union rules introduction. Maintaining and strengthening the position of Ukrainian business in foreign markets are the most important issues for Ukraine. Not only the budget filling and jobs creation, but also the stability of the general economic situation depend on this issue", - said Dmitry Firtash.
 
According to Mr. Firtash, the Committee for Technical Regulation on the markets of the Customs Union has been established on the basis of the Federation of Employers of Ukraine. This Committee will coordinate the development of Ukrainian technical regulations and their harmonization with the standards of the Customs Union. Under the Committee for Technical Regulation the Federation of Employers of Ukraine will cooperate with the governments of Ukraine, Russia, Belorussia and Kazakhstan as well as with the Russian Union of Industrialists and Entrepreneurs.
 
"We must not lose the opportunity to create normal conditions for export to the countries of the Customs Union and we must not repeat the mistake made during Ukraine's accession to the WTO", - said Dmitry Firtash.
 
NOTE. According to the European Commission from early 2008 to April 2012 most developed countries have introduced more than 530 trade barriers. It's about tariff and non-tariff barriers, such as changes in customs tariffs, encouraging domestic companies in public procurement, promotion of priority sectors, export promotion, restrictions of raw materials export for its processing within the country. Countries with the most capacious and fast-growing markets protect their markets with a help of the most strict measures. These are the countries of BRICS, Asia-Pacific region and Latin America. For example, Russia has introduced 86 restrictive measures, Brazil - 38, China - 30. Ukraine has imposed only two measures during this time (related to government incentives in priority sectors and grain export limits).