Translated by Ollie Richardson & Angelina Siard
The association agreement with the EU does not stimulate the economy of Ukraine. The European Union seeks to protect its markets by taking measures that infringe on the interests of Kiev. At the same time Ukraine does not protect its own market.
This was stated at the Kiev International Economic Forum (the videos of which can be found here) by Igor Guzhva, an expert from the Center for Market Economy Development.
“We have the agreement (on association with the EU), but let’s look at our macro-economic indicators in recent years. 2/3rds of our exports are raw production, and more than 50% of imports are finished goods.
In Ukraine the penetration level of imports into state procurements, probably, is the largest in the world – 38%. In the same EU and the US it is 5-6%. It is necessary to add to this the fact that Ukraine has a chronic trade deficit. Last year it was nearly 10 billion, and this year it will be 11 billion, etc. At the same time Ukraine has to service its external debts.
In relation to Ukraine, over the last 10 years more than 1,500 protective measures were taken, and Ukraine accounts for 79 of them.
If to speak about Ukraine and the EU, then over the last 10 years the European Union in relation to Ukraine took about 130 different protective measures. About 100 of them infringe on the interests of Ukraine, there are 3 anti-dumping investigations specifically against Ukraine.
As for Ukraine, it introduced slightly more than 10 measures that somehow infringe on the interests of Ukraine. First of all, this concerns the law on the moratorium on the export of wood and export duties on scrap metal.
The EU is also concerned about new Ukrainian initiatives like ‘buy Ukrainian’, which provides a model similar to the EU’s model of assessing tender offers and the obligatory consideration of localisation criterion. This concerns an export credit agency and tax preferences for industrial parks.
What is important to note is that from the Ukrainian side hasn’t purposefully taken any measure against the EU. All our measures are not so much protectionist as they are additional elements for investing in Ukraine. These measures are aimed at solving environmental problems and providing our enterprises with access to raw materials and financial resources. For the EU this is also a good opportunity to invest in Ukraine.
An example is the round timber. The EU in every possible way manipulates us so that we cancel the initiative to ban the exportation of round timber. But this initiative was justified by an environmental disaster. It was possible to hold joint consultations and dialogue, to invite the EU to see the Carpathians, to invite them to invest. It is a measure not against the EU, it is a measure for the protection of our environment. Come here, to Ukraine, and place your production here,” said the expert, complaining about the “incompetence” of Europeans.
And as if this wasn’t bad enough, the EU in turn simply further mocks Ukraine and pretends that it is Ukraine that wants to come, and is coming (although social polls say the opposite thing), towards the EU, and not the EU towards Ukraine (for the purpose of looting, obviously). Thus, the chief representative of the European Union in Ukraine Hugh Mingarelli, also speaking at the 2018 Kiev International Economic Forum, stated that Ukraine must completely implement European legislation and standards, and only then will it be able to count on the European markets opening up to its production.
“If Ukraine wants to increase its export, then it is very simple. It is necessary to do two things. First of all – to adopt EU standards and to carry out the harmonisation of Ukrainian legislation its European counterpart. Then you will become a part of the unified EU market, which is the world’s largest,” said the representative of the EU.
“Secondly – if you want to attract investors for the processing of raw materials, then you have to adhere to the law. When you ask European companies why they aren’t coming to this fantastic country with the best traditions that one can only imagine, the best farmlands, tourist potential … Why don’t they invest? Because of problems with the law. If tomorrow my company is occupied by raiders, what should I do? What court is independent and honest, which one works sincerely?” said the diplomat.
According to him, if Ukraine “implements European legislation”, then it will push aside most of the obstacles that are on the road to the European market.
“And if you want to attract investors – the law, the law, the law,” stressed Mingarelli.
What Mingarelli deliberately doesn’t say is that the reason that enterprises in Ukraine are raided by bandits (example) is because Brussels took part in the 2014 coup and thrusted a lance between the country’s shoulders, dangling the “EU membership” carrot over the head of “democratic” Ukrainians from start to finish? 5 years later – no EU membership. And there won’t be either. Mingarelli and his clique are professional swindlers. This is what they do, it is their raison d’être.
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