Expert opinion in “European truth”: #Betrayal chocolate: Ukrainian exporters who framed

Nov 02 2015 published c earnings

Evro_pravdaWITH 23 April last year, the EU started to unilaterally apply the trade part of the Association Agreement with Ukraine. Для українських кондитерів цей крок означає відкриття доступу до європейського ринку, whose capacity is in part sweets 45 billion euros. For comparison, capacity of confectionery market of the Customs Union – $15 billion.

By signing the EU Association defended sweets from our high duties at 35-50% cost of production, making Ukrainian exports “Confectioner” to the European Union almost impossible.

Instead, a new trade regime provides for full liberalization of mutual trade in confectionery between Ukraine and EU.

Проте за період від початку дії торговельних преференцій середньомісячний обсяг поставок вітчизняної кондитерської продукції до ЄС склав 2,6 th. tonnes. It is only 8,3% compared with previous deliveries within the trade regime.

There are various reasons for this relatively low rate of promotion to the European market. Some of them need business solutions, and now the industry is working hard over, To develop these solutions.

But there are questions, which lie within the competence of the state. First of all, this applies to the development and adoption of legal instruments, Ukrainian producers that will meet the requirements of exporting countries.

Examples include the situation around the artificial blocking access to the European market Ukrainian confectionery products containing tropical nuts and peanuts.

In September 2014 the EU introduced its Regulation №884 / 2014, through which the risk of contamination of aflatoxins imposed special conditions on the import from any country food, containing in its composition more 20% peanuts and some tropical nuts. It, mostly, confectionery.

In accordance with this Regulation, exporting country of food businesses must give their, importing into the customs territory of the EU relevant products, Health certificate at a specified form.

Nothing complicated in implementation of this requirement is not. In Ukraine there are many certified laboratories, which effectively check the safety indicators, compliance with which this certificate is confirmed.

But no procedure, for which a certificate should issue in Ukraine.

Everything, is required by the government of Ukraine – formalize the procedure for obtaining the health certificate Ukrainian exporter.

The first fact of denial of export clearance Party of one of the largest Ukrainian manufacturers on the Polish EU customs certificate due to lack of care we have recorded this summer.

Association on behalf of the industry immediately turned to a number of ministries and departments of Ukraine to resolve the issue. We have described the problem, provide an official translation of European regulations, explained the commercial prospects.

In particular, potential export confectionery, containing in its structure 20% more peanuts or pistachios or hazelnuts, of Ukraine to the EU is in prospect 10 th. tons per year, which will provide additional use of Ukrainian sugar volume 5 th. tonnes, борошна – 4 th. tonnes, масложирової продукції – 3 th. tonnes, крохмалопатоки – 1,5 th. tonnes.

We were confident, if the producers decided to develop a product problem, signing a contract and access to competitive foreign market, it is for the state to resolve the problem of issuing supporting documents will not be difficult.

However, In a few months we watched the game in ping pong, in which each agency convinced, it is not his competence, responsible mouth producers told us about the terms provided answers to appeal, Fortunately search offered in other departments, etc..

Of course, all in form and uchaslyviy “understanding of the problem”.

We have appealed to the Prime Minister, but our appeal, descending down the chain of command, Finally horrible at the same “document circulation in nature” locally.

Formally officials did not violate.

But in fact business, won a competitive struggle in entering an important strategic market, There is a long time at a low start because of the reluctance of the state to deal with the division of responsibilities between its institutions and establish effective inter-agency communication.

All this against a background of severe crisis in the country, only when the confectionery industry decline in production was more than six years 35%, and a trade war with Russia, one of the main purposes of which in Ukraine was just confectionery industry.

It would, one compensatory step towards a third market today for the state weighs more than gold. But, as we see, Declaration often differ from reality.

By the way, similar certificate, but almost all food groups, demand from 2015 , and in the Gulf - interesting for Ukrainian food industry exporting region.

Of course, technical regulations - is today much less problem for our exports, than excessive fiscal pressures and currency Ineffective regulation by the Ukrainian State.

However, the story would inspire our government to some conclusions.

Firstly, it is obvious, that the activities of early detection of, which may affect trade and economic interests of Ukraine abroad, requires significant improvement. Unfortunately, Business is unable to monitor the situation in each foreign market. However, it is funded through taxes The Embassy, who would pay more attention to economic threats before, they have.

And the reaction begins after treatment is mostly business, which was the object of a threat.

Per-second, we need to change the orientation of the philosophy of bureaucracy in the organization process, instead of striving to achieve results. Ukrainian officials had for the most part depends on their performance. Vice versa, Ukrainian government service for years cultivated approach, followed by excessive activity can lead to faster recovery, than the praise: “that you, most of all you need?” or “how much you pay confectioners, so that you have for them imbued?”

not great, among civil servants with experience common is the lack of initiative, passive position and reactive approach: officials had to convince the correctness of their position, його потрібно ще й примусити чи умовити до дій.

On the other hand, “you want from me, my salary - and a half thousand”. And this is also a factor.

Thirdly, should review the terms for processing, depending on their weight on the economy. Time, is known, have money. And during the war - especially.

Finally, interdepartmental communication leaves much to be desired.

In this story to halt deliveries to the EU kondyterky nuts to me as the industry had to run around several departments and agencies, working broken phone in a desperate attempt to find an acceptable solution for all state institutions.

Would benefit spend in coordination with other ministries Brain Storm in the form of interdepartmental meeting, where to find and agree on a joint decision and the timing of its implementation, allocate responsibility. Today, it is not necessary to spend the afternoon. For the teleconference only one smartphone. But no – “We do not work”.

This country, leading defense “hot” war with the aggressor in terms of the trade embargo on his part.

P.S. The problem with tolerance Ukrainian confectionery with peanuts and tropical nuts to EU markets took personal control of the Deputy Minister of Agrarian Policy Władysław Rutytska. She assured us, that soon will do everything possible, Ukrainian bakers to continue could export to the EU and the Gulf.

Author: Oleksandr Baldyniuk,

президент асоціації Укркондпром

Original article available here.

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