Posted by Zee Kleshchar on Oct 19, 2011 in Agricultural Sector, News & Updates, Policy Wins & Progresses | 0 comments
The American Chamber of Commerce’s Agricultural Committee welcomes President’s decision to sign recently adopted Draft Law #9239 “On Approval of Rates of Export Duties for Certain Categories of Agricultural Crops” which abolishes existing export duties for a number of cereals (except for barley) which is yet another step in the right direction towards the introduction of free market principles reversing a trend of market interference experienced by the industry recently.
It also marks a crucial success in the Chamber’s efforts which included a series of meetings with senior governmental officials and providing persuasive arguments against extension export taxes to policy makers including the President of Ukraine, the Prime Minister, relevant Ministers and Parliamentary Committees.
Liberalization of grain trade which will result from the abolishment of export taxes requires establishment of a framework for cooperation between the Ministry of Agricultural Policy and Food of Ukraine and non-governmental organizations representing their members operating in the agricultural industry. The Chamber has been pleased to have taken a leading role in that effort to build partnerships among relevant stakeholders.
With this in mind, the Chamber facilitated the development and signing of a Memorandum of Understanding with the Ministry of Agricultural Policy and Food of Ukraine whereby the Ministry agreed to inform the industry about closure of exports a minimum of two months prior to that restriction being put into place when volumes of grain exported reach 80% of the explicitly identified exportable volumes. Also, the Ministry confirmed that prior to the decision about the closure of exports it will not establish any direct or indirect barriers for the free export of grain from Ukraine.
The American Chamber of Commerce remains committed and ready to work with the Government of Ukraine on developing a more efficient and competitive agricultural industry based on free market principles. We believe that the properly functioning and transparent grain market is a key factor in encouraging additional investment and facilitating an export-led economic recovery in Ukraine.
To get involved into the Chamber Agricultural Committee operations and/or to receive relative information updates, please contact Denys Sobolev, Policy Officer / Agricultural Issues.