Ukrainian entrepreneurs have proposed representatives of European institutions in Brussels how to improve the policy of trade and economic relations with Ukraine. These proposals can be incorporated in the addenda to the EU trade strategy, which was published by the European Commission in late 2015. Currently, the European community is mulling possible ways to improve it, in particular, much time of the European Business Summit in the Belgian capital was devoted to the discussion of this issue.
Ukraine for the first time joined the discussion of this forward-looking strategy of the EU, as a delegation of the Ukrainian League of Industrialists and Entrepreneurs (ULIE) was a partner in the summit.
It is widely known that the interests of small- and medium-sized businesses are increasingly influencing trade policy of the EU. To enjoy successful cooperation, Ukraine should rapidly develop the business environment and become a full-fledged partner of foreign investors and companies. This is beneficial to both parties, because the domestic market does not use its full potential. Therefore, the ULIE insists on joint monitoring of the use of targeted financial assistance and EU investments in making loans to domestic businesses affordable and modernizing of the economy instead of covering different types of deficit.
“It’s time for Ukrainian businessmen, officials and diplomats to become more active in that direction, because foreign trade does not demonstrate growth despite the launch of the free trade area. In particular, in January-March 2016, trade turnover between Ukraine and the European Union was $7.058 billion, which was even 2% down on the same period of 2015,” ULIE President Anatoliy Kinakh said.
He agreed with many members of the business summit that more efforts should be made to assist small businesses in using the benefits of free trade, influencing the EU’s trade policy. Ukrainian industrialists and entrepreneurs, based on its representative office in Brussels, are willing to participate in this process.
Nowadays, European officials positively assess the efforts and initiatives of Ukrainian businesses. In their view, it considerably encourages investors and companies from the EU member states to enter the Ukrainian market and boost cooperation. They welcome the activities of the representative office of Ukrainian entrepreneurs in the EU, which was opened by the ULIE in Brussels in April last year, and praise its regular contacts with the European Parliament, the European Commission, partners from BUSINESSEUROPE, which is the largest and most powerful business association in Europe.
In turn, Ukraine has to do its own “homework” to ensure complete adaptation of domestic products in line with EU standards and regulations, greater legal protection of the rights of owners and investors and to facilitate the development of the business climate.
The Ukrainian delegation focused on negotiations not only with peers from the EU, but also reached preliminary agreements with relevant business associations from Canada and Serbia. In particular, the heads of the ULIE and the Canadian Federation of Independent Business (CFIB) initiated the signing of a cooperation agreement, which will stipulate key agreements to enhance bilateral economic contacts. CFIB President, CEO and Chair Dan Kelly proposes devoting more attention to cooperation in the field of small- and medium-sized businesses and investment.
As early as this summer, Canada will host negotiations between the organizations and a joint plan of action with specific tasks, deadlines and commitments will be drawn up. The parties also expect the fastest signing of the FTA between Canada and Ukraine, which, according to some sources, is scheduled for this summer.
Serbia can also become an interesting market for Ukrainian manufacturers. Entrepreneurs from that country are willing to buy Ukrainian equipment and instruments, farm produce, and metallurgical products. This was confirmed by President of the Serbian Chamber of Commerce and Industry Mark Čadež at a meeting with Anatoliy Kinakh. He supported the idea of strengthening bilateral communication in economic issues and cooperation in boosting trade to the level that meets the capabilities and interests of both countries. The ULIE and the Serbian Chamber of Commerce and Industry agreed to prepare a memorandum of cooperation.
Much effort should be put into the full use of all the possibilities of the free trade area between the EU and Ukraine. The plans include further work to inform the business community about the potential areas of cooperation that are interesting to foreign partners and Ukrainian businesses and arrange workshops, conferences, and meetings in the B2B format.
As was earlier reported, Brussels has recently hosted the European Business Summit, which was co-organized for the first time by the ULIE. Our delegation included about 50 respected businessmen, politicians and opinion leaders and was led by ULIE President Anatoliy Kinakh. Its task was to bring Ukraine’s potential to investors’ attention as much as possible and to significantly facilitate Ukrainian producers’ export opportunities.
The Summit brought together more than 2,000 participants from EU countries, high representatives of EU institutions. Honorary guests of the event were be President of the European Commission Jean-Claude Juncker, President of the European Parliament Martin Schulz, President of the European Council Donald Tusk, EU High Representative for Foreign Affairs and Security Policy Federica Mogherini, Managing Director of the International Monetary Fund Christine Lagarde, and others.
