Ukrainian exporters should be more active in seeking state support and reforms

13.11.2015

Ukrainian exporters should be more active in seeking state support and reforms

Ukrainian exporters should be prepared for challenges associated with the opening of European markets, while actively using the benefits of such a unique situation. Therefore, it is necessary to strive for self-improvement, and, by uniting efforts, contri

Ukrainian exporters should be prepared for challenges associated with the opening of European markets, while actively using the benefits of such a unique situation. Therefore, it is necessary to strive for self-improvement, and, by uniting efforts, contribute to creation of conditions for business development in the country, lobbying for the adoption and implementation of state programs for development of the whole economy, its individual branches, modernization of production, as well as increase of exports. Inertia has never helped any economy to make major leaps - Ukraine now has a real chance to transform, making use of its existing capabilities and strengthening its competitiveness in international markets, stressed the ULIE President Anatoliy Kinakh in his interview with local TV channels.

He noted Europe was not considered only as a sales market but also as a source of advanced technology and investment for domestic producers, accounting for 60-70% in the total structure of foreign inflows in Ukraine. To take advantage of those benefits resulting from the introduction of the FTA, Ukrainian industrialists and entrepreneurs need to work on standardization and certification of products, search for specific partners, adapt to market requirements (complying with technical regulations, thoroughly executing transactions, terms of supply) etc. In this context, the state has to play its role too: simplifying customs procedures, introducing currency regulation, solving the issue with VAT refunds.

"Supporting export should be done in a systematic way. This includes both administrative and legal support. Is there an export development plan or sales market diversification plan? They should have been implemented already, yet, they are still at the stage of consideration, while endurance and time are running out - export continues shrinking (down 35% now), access to promising markets is rather limited for Ukrainian producers, as the latter offer mostly raw materials, while it is important to expand supply and high technology products with high added value. All these issues can be resolved, but through joint efforts and with an efficient export development strategy available," the ULIE President said.

He notes the only anti-crisis plan, which has been developed in the country, is the anti-crisis program of joint actions of government and business, prepared jointly by business associations, entrepreneurs and scientific circles. The document has been provided for familiarization by the state leadership, key ministries and public, etc. Hopefully, those proposals will be transformed into real actions in the near future and will encourage systemic changes in the country's economy and its key sectors.

"First of all, it is restoration of the industrial capacity of Ukraine, since production indicators in this sector are very "turbulent "- from recessionary low (18% drop in total) to almost zero - in August, for example, not a single car was produced. Updating worn-out technological assets, reduction of energy consumption, productivity improvement is vital to solving the problem," said Anatoliy Kinakh.

Besides, he urged producers not to focus only on the EU markets, but offer Ukrainian products in other regions - South Asia, Latin America, Middle East and so on. Companies with well-developed production capacities, producing high-quality products, will manage to find export markets. Especially, when they can always rely on assistance with finding potential partners, including through the Export Assistance Centre set up at the ULIE.

According to its data, small and medium business (SMB) has demonstrated the biggest success in entering EU markets. It is no surprise because it (SMB) accounts for 80% of GDP in majority of countries. Participation in public tenders held in European countries is also of great importance for Ukrainian exporters. The industrial and entrepreneurial community is currently working on this task by finding a mechanism for involving domestic businesses in such attractive opportunities that exist abroad.

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