Information for fruit and vegetables business in CIS
EU-Ukraine FTA. What will it give to Ukrainian fresh produce business?
Fruit-Inform's analysts, analyzing the first public statements on Ukraine's entry into the free trade agreement with the EU, note that the possible agreement is far from free trade one for the Ukrainian fruit and vegetable sector.
In particular, last week it was announced that Ukraine will gain a possibility of duty-free export of 50,000 tonnes of vegetables and 270,000 tonnes of fruits to the EU (we hope that such conditions refer to fresh fruits). However, nothing was said of the possibilities to be afforded to European suppliers in exchange.
The EU and other WTO members have already got a possibility of practically duty-free export of apples to Ukraine. Ukraine's import duties on other fruits are almost equal to zero too. Therefore, in fruits, Ukraine will profit from the free trade agreement with the EU. “The 270,000 tonnes fruit export quota will be enough for Ukraine in the nearest 5-7 years due to the volume of Ukraine's fresh fruits competitive in quality not exceeding 80,000 tonnes now (if melons and watermelons are rated as fruits)”, Tetiana Getman, Head of Fruit-Inform, says. “The vegetable export quota may be fulfilled already in this season thanks to Ukraine's only onion exports to the EU to be possible to amount to not less than 50,000 tonnes. It is evident that the European Union is seriously concerned about Ukrainian vegetables if it fixes such a small quota”, the expert continues.
According to Fruit-Inform's opinion, the possibility of duty-free vegetable import from the EU will as well not have a significant impact on Ukraine's internal market, as import duties are already relatively low. Imports of traditional vegetables from the EU may slightly grow only in the spring period of shortage years. At the same time, it is not clear what Ukraine is going to do: either limit imports from the EU to tariff quotas, or grant a full access to its market.
More detailed attention to the EU-Ukraine FTA will be given at the Eighth International Conference “Fruits & Vegetables of Ukraine – 2011. New Exporter”. The event will be hosted in conjunction with Fresh Produce Ukraine 2011 Fair which will take place at IEC, the most up-to-date exhibition center of Ukraine in Kiev, from November 30 to December 2, 2011.
As of today, about two thirds of the exhibition's area has been already reserved. There are about 50 companies from 10 countries of the world engaged in the fresh produce business among exhibitors, inclusive of such world-know companies as Syngenta, Agrofresh Inc. (Smatfresh), Enza Zaden, Greefa, The Nickerson-Zwaan Group, Agroplant, Allround Vegetable Processing B.V., APH Group, Altracon, Insolar, Chilean Fresh Fruit Association, Maschio Gaspardo S.p.A., Mediterranean Fruit Company S.p.A., Sorma Group, Fito-Mag, Kronen GmbH, Plattenhardt + Wirth GmbH, Holland Rosetta and many others.
The event will be widely covered in the global specialized and business mass media and has already received official support from Ministry of Agrarian Policy and Food of Ukraine.
More information about Fresh Produce Ukraine 2011, its exhibitors and the exhibition floor plan is available on the official web-site. Application form for participation as an exhibitor is available here. To participate in the conference, please fill out an application form.