Ukraine goes to accident: “terrible choice”...

The Ukrainian weekly “2000” published the article which still causes feeling in any conceiving person if not the horror, but hopelessness exactly: read about a near crash while live industry and agriculture of Ukraine. Rest in peace.

One of the main arguments of the European integrators is reduced to that the European Union market (400 million people) is much more volume, than the market of the Customs Union (170 million), besides the inhabitants of EU are much more solvent than in the Customs Union.

And at last, we were presented the opportunity to see on what conditions the Ukrainian production will be able to get to EU (and European, respectively, to Ukraine) and it is good that the text of the initial agreement on Free trade zone and Association creation with the appendix containing the rates of the customs duties is already published.

At once pays attention that the customs rates are given in a percentage on all positions for import to Ukraine (from the price declared by the supplier) and make from 0 to 10% (above extremely seldom). And in EU duties there is a fixed rate of the customs duty and on many positions it is “free” in general, i.e. EU can put that which will consider necessary and has the right to change at any time. As a whole, of course, it is impossible “to prepare” deeply two documents containing 500 and 630 pages within this material, but even some, but very typical positions, give a bright and complete idea of its essence.

Here, for example, “a national Ukrainian product” - the pork. The Europeans will be able to import it into Ukraine, having paid the duty in 5% and here it is necessary the Ukrainian producer to pay 10,2% and “93.1Euro/100 kg / net” to get to Europe with the pigs. I.e. at central European wholesale price in 2Euro/kg we receive 50-60% duty, which differently as prohibitive is impossible to call (we will remind that the document is called: “agreement on free (!?) trade zone”).

Absolutely similar situation in other types of cattle-breeding production. So, to take the butter “there” is 189.6 Euro/100 kg / net; “from there” - 10% and moreover “30% of reduction during 5 years”. Similar situation with cheeses, only here Ukraine undertakes to lower a rate in 50%. Further we look at “European sardine” - 23% from Ukraine to Europe in the opposite direction – 0%; fishermen also can “rest on their oars”.

The European duty in grain-growing, namely the wheat and corn is 94Euro/ton, plus a quota of 950-1000 and 400-650 thousand tons respectively (the flour enters into this quota also) … So the Ukrainian agriculture has nothing “to catch” in Europe, but there is full expanse in Ukraine to their European colleagues receiving considerable subsidies from the governments. Unless, “vegetable fats” — here the duty is only 3,2%, well so the interest of “Europe” is well-known that the oil crops killing the soil (the agronomics demands to sow with them a site not more often than time in seven years) were grown up for it in Ukraine.

The duties of European Union on raw positions and production of chemical industry are much more liberal and here everything is clear – it is deficiency with raw materials in Europe (therefore now the import duties for them are insignificant without any free trade zone), the desire to take out far away the ecologically harmful productions with low level of a value added is also clear. And here practically on all types of steel products “free’ duty (it is zero to Ukraine from EU) is established. I.e., the main product of the Ukrainian export, the main source of currency receipts simply drops out of Free Trade Zone! The explanation here can be only one – reserving a freedom of action in this extremely sensitive question for the Ukrainian oligarchs, “Europe” can (and the power representing their interests) lead them in a string, not to allow any “liberties”.

As for the production of mechanical engineering, hi-tech products, so in most cases the duties are “accepted” and even “parity”, but it is explained sometimes that our production of “advanced processing” in the West isn't in demand and doesn't cause the fears by the competition. For example, the duty is 16%, on new and second-hand cars in “both sides”, but it is obvious, in whose advantage this “parity” is. But where Europe sees at least the competition threat, a situation is absolutely other: so, almost on all positions of agricultural machinery –it is “free” duty “there”, “here” – zero.

“European integrators” claim that the creation of Free Trade Zone in large quantities will attract investors to Ukraine who will build the enterprises focused on the EU market. Differently, “own”, nowadays working Ukrainian enterprises, maybe, also “will be turned down”, but there will be hundreds new, modern, belonging to foreign investors “on their place”.

But let's put ourselves to the place of the investor, who decided to create the new production focused on the European market, and we will think, what Ukraine can attract it, instead of, say, Romania, Bulgaria, the Baltic States already entering into EU. After all as we see, Free Trade Zone only reduces the duties and doesn't cancel procedure of customs registration of goods stream which, naturally, noticeably complicates the business. Let's add the known problems with investment climate in Ukraine, the worst, than in the most economically weak European Union countries, infrastructure (roads, transport, communication, etc.) etc. And even an average salary (cheap labor force) is almost same as in Bulgaria. Thus we don't see any boom of investments neither in Bulgaria, nor in other poor EU countries, on the contrary – full stagnation and decline.

Generally, Free Trade Zone doesn't open, in fact, any markets, doesn't bear any benefits of any of branches of the Ukrainian economy and many dooms to death. There are no duties in the Customs Union completely, it opens the market traditional for us for the Ukrainian agriculture and mechanical engineering, as well as other branches.

At last, the introduction in the Customs Union will sharply increase the investment appeal of Ukraine. The Minister of Finance of Russia Anton Siluanov noted at the St. Petersburg forum: “We (Russia) are on a limit: capacities are almost completely loaded, unemployment is at a low level …” (LOOK) I.e., there are no free human resources in Russia almost that it is a problem for it, but for us it means that at entry into the Common economic space the investors creating productions, focused on the growing Customs Union market will go, first of all, to Ukraine where “resources” are currently more, than it is enough.

And how the present governors need not to love Ukraine it (and also “oppositional” orange “patriots”) in order to prefer such opportunities, without exaggeration, to terrible “European choice”!

It is the article of not harmful “Moskals”, it is the article from the Ukrainian weekly. Well, Ukraine, will the Poles help you?