chimera wrote on Aug 26
th, 2024 at 2:56am:
RussiAnVetEraN wrote on Aug 25
th, 2024 at 11:11pm:
And this is enough time to start mass protests.
Yes 2014 was time for Putin to protest against Ukraine's Orthodox majority who voted to trade with Europe. His artillery joined the protest against democracy. Then the protests were started against the Russian Fascist Church of Kirill of All Nukes.
I still don't understand where 80% of the believers of the banned church are? What are they doing? Have they decided to become atheists?
I have an indiscreet question for you, have you read the text of this agreement? Do you think it was manna from heaven for Ukraine?
Opening statement of Prime Minister of Ukraine Mykola Azarov during Government's meeting on January 15, 2014".....
Today I will focus only on some aspects of the problem.
First of all, it is necessary to resolve the situation about agricultural products. Agricultural production is dynamically developing and, figuratively speaking, "to chip" it we can not.
Ukraine reduces fees from average 9.24% to about 1% (ie, more than in 6 times). Ukrainian agrarian producers will not be able to immediately experience the benefits of reduction of duties in connection with the incompatibility of their products to EU standards on quality and safety. Particularly sensitive areas are the production of meat and meat by-products, milk and dairy products, fruit and vegetable production, food product groups.
That is, the first thing to determine: where to get the resources and support for the rapid modernization of production capacities.
The second, there is asymmetry in the volumes of state support for agriculture between the EU and Ukraine. Subsidies to farmers in the EU are much higher that is about 10 times larger. Thus, the subsidies per 1 hectare for the EU countries are 316 euros per hectare in Poland or 200 euros per hectare in Romania. And on average - more than 300-400 euros.
What does it mean if to compared with that state support that agricultural production in Ukraine has - about 43.6 euros per hectare?
This means that the funds, which actually go to reduce the cost of production of Ukrainian agriculture, have to be increased by about 10 times to Ukrainian products compete with European. This, by the way, is the salary of million people.
Ukrainian producers simply can not compete with cheap products through grants from the European Union. A striking example of this - Bulgaria, which has been recognized as a leader in the production of tomatoes and peppers, and after joining the EU completely lost this industry.
So, we must reach an understanding of how to use additional protective measures and the terms of trade, for example, the use of input prices, that stipulated in the contract as the right of Ukraine. Does it compensate for this gap in competitiveness?
More, even zero rates from the EU, duty-free export of grain, pork, beef, poultry, etc. is possible only within quotas. Given the significant potential of Ukraine in increasing crop production and livestock products, these quotas are actual barrier to export to the EU and a direct constraint to the development of relevant domestic industries.
Reduction of Ukraine export duties on sunflower seeds, raw hides definitely reduce the export of finished goods and increase exports of agricultural products. Domestic processing industry may lose some of the manufacturers and the leading positions on the world market. And it may be completely destroyed. We need protection from such a scenario.
With regard to steel production and manufacture of fabricated metal products. Apart from the fact that the majority of duties between Ukraine and the EU were almost zero as a result of Ukraine's accession to the WTO, free trade area provides a further reduction of duties.
Given the low value-added of Ukrainian exports of steel products, it could lead to further loss of competitiveness.
In addition, steelmakers may face a sharp increase in production costs due to higher raw material costs and environmental activities. Thus, the rate of export duty on scrap of ferrous metals, non-ferrous metals and semi-finished using them, as well as stainless steel will drop from 15% to 0% after the transition period and implementation of the environmental conditions of the agreement will require significant investment.
Simply to say, if we do not foresee conditions for the protection of our industry in a few years it will be advantageous to cut all the metal in Ukraine and sell it for recasting than invest in jobs in Ukraine. This is an unacceptable way for us, as it comes to a key set of our industry, which employs hundreds of thousands of workers in coal and mining industries, energy, transport and so on. SMEs live by incomes of these workers and so on.
Therefore, we must find conditions favorable for Ukraine in implementation of this part of the agreement with the EU.
Machinery engineering. According to statistics, Machinery engineering brought Ukraine about 19% of export earnings in 2013.
But almost all engineering "can go under the knife" of unfavorable terms of trade for literally 4-5 years.
........ "
https://www.kmu.gov.ua/en/news/246976860