Open Appeal of AIC Ukraine’s non-government professional organizations

The AIC’s non-government professional organizations support execution of an agreement concerning the deep and comprehensive free trade area with the EU. The non-government professional organizations, such as the European Business Association, Agrarian Union of Ukraine, Association of farmers and private landowners of Ukraine, the Ukroliyaprom Association, the Ukrainian Club of Agrarian Business Association,

the National Ukrtsukor Association, the National Poultry Farmers’ Union Association, the Union of dairy businesses of Ukraine, Ukrainian Agrarian Confederation,Ukrainian Grain Association, Ukrsoya Association, Tvarynprom Association, the Feed Producers’ Union, Association of Milk Producers, Seed Association of Ukraine, The Union of members of agricultural service cooperatives, representing agrarian businesses in Ukraine, support the execution of  an agreement concerning the deep and comprehensive free trade area between Ukraine and the EU at the earliest possible date. 

The associations emphasize that of the total export of agrarian products for the amount of USD 18 bln., 27% of the total export, or products for the amount of USD 4.8 bln. was exported to EU countries. According to analysts, if the free trade agreement is signed, this may potentially increase export to the EU by at least USD1-1.2 bln. Access to European markets will also foster the marketing of Ukrainian agricultural and food products at the markets in third countries.   

The representatives of agrarian sector underscore that negotiation processes concerning the development of free trade parameters involved active cooperation of the Ministry of agrarian policy and Ministry of economic development of Ukraine with the associations and business community. This being said, the prevailing majority of proposals offered by industry associations was taken into account.

The agrarian community emphasizes that the conditions included in the initialed free trade agreement are beneficial for the Ukrainian agrarian complex on the whole.

For example, agrarians’ profits can additionally grow by approximately Euro 180 mln. on an annual basis just based on duty-free export of grain to the EU within the framework of extended quotas.

This Agreement includes a possibility of duty-free supply of cheeses, fruit and vegetables, vegetable oil and oilcakes, as well as significant amounts of other types of agricultural products to the EU. This will enable agrarians to additionally diversify their market channels and will incentivize further development of   Ukrainian AIC industries.  Also, Ukraine has retained an opportunity to protect its domestic market in terms of the most critical commodity items, such as pork meat, sugar and some dairy products by means of application of import quotas and\or just partial reduction of current import fees.

The business community emphasizes that the improvement of regulatory environment by its alignment with EU legislation, as set forth in the Agreement,  will enable development of a more business-friendly climate in Ukraine that will ensure the inflow of investments in support of further development of AIC industries. Also, the harmonization of food product quality and safety system in Ukraine with EU best practices will ensure better protection of food products’ consumer interests in Ukraine.

The issues related to execution of the Association Agreement with the EU have been continuously discussed with all stakeholders of agrarian industries of Ukraine.  This step by Ukraine was supported during the National Roundtable “Agrarian sector of Ukraine towards European integration” chaired by co-Chair of “European Choice” inter-faction MP association of Verkhovna Rada of Ukraine, President of UUIE A.K. Kinakh, with the participation of M.V. Prysiazhnyuk, Minister of agrarian policy and food products of Ukraine, G.M. Kalyetnik, Head of Agrarian Committee of Verkhovna Rada, broad agrarian community, representatives of science and businesses, as well as  at the meeting of the Public Council under the  Minister of agrarian policy and food products of Ukraine.

Considering the above, the agrarian community expresses its confidence in the following:

Firstly, the executed Agreement will facilitate further enhancement of economic relations, trade and investments between Ukraine and EU, and it will assist the government of Ukraine with implementation of the reform program aiming at overcoming of the impacts of global economic and financial recession, eliminating corruption and renewal of sustainable development of the national economy.

Secondly, the associated membership of Ukraine in the EU would be an impetus for the development of domestic AIC.  

Thirdly, it will create pre-requisites for:

• Macroeconomic stability;
• Access of Ukrainian agricultural products to new markets;
• Additional investments in Ukrainian AIC;
• Development of medium and small businesses in rural areas;
• Introduction in Ukraine of EU standards and regulations in AIC, which will inevitably result in improved competitiveness of domestic enterprises;
• Support of surplus in trade balance of the country by means of agrarian sector.

Fourthly, pre-requisites will be created in Ukraine to allow no access of European products supported by EU export subventions to the Ukrainian market, which means that domestic products and domestic producers will be protected.

It is apparent to us that execution of this Agreement will mean a unique chance that we must not lose under whatever circumstances.

Considering the above, the agrarian business community expresses its support of expediting the process of execution of the Association Agreement with EU, of which the Agreement Concerning the Deep and Comprehensive Free Trade Area is a part, in the interests of Ukraine, its economy and People.