After the creation of a free trade zone between Ukraine and the EU, under the
condition of a proper investment climate, it is possible to expect an increase in
investments in the domestic food industry from the EU countries.
There is a danger of weakening the competitive position of domestic food
processing enterprises, especially small and medium-sized ones, as a result of growing
competition in the domestic market. Against the backdrop of high non-tariff barriers
for domestic food products, the special risks for the industry are the likely loss of
markets of the EEA countries. The disappointment, above all, is the fact that even the
share of foreign investment in the total amount of expenditures on them almost always
exceeded the financing of innovation activity at public funds, despite the priority of
this task for the stable socio-economic development of the country [7, p. 18].
Minimal loss of export earnings in the food industry can reach $ 147 million
dollars per year [2].
The Association Agreement between Ukraine and the EU establishes the
commitments made earlier in the framework of the European Energy Community and
establishes a clear timetable for their implementation from the date of entry into force
of the Agreement. These commitments include the implementation of a number of
European directives aimed at transforming as an institutional environment in the
markets for electricity and natural gas (Directives of the Second and Third Energy
Packages), as well as the technical and technological structure of production capacities
and the energy balance in general (energy efficiency directives, incentives for use
renewable energy sources (RES), limitation of harmful substances emissions, etc.).
Changes in the trade regime as a result of Ukraine's signing of the Agreement will
operate in the short term and will be reflected in changes in the existing import duty
rates by abolishing the EU import duty on Ukrainian goods and the gradual reduction
of Ukraine import duties on goods from the EU over the next five years.
The agreement also foresees deepening of cooperation by involving Ukrainian
business entities in joint research, communication and information projects, therefore,
given the high potential of Ukraine's development in these sectors, it is possible to
forecast the growth of exports of certain types of services.
Thus, in order to make the most efficient use of opportunities for expanding the
export of domestic food products within the framework of the Association Agreement
with the EU, Ukraine needs:
- to intensify efforts to implement internal state policy aimed at harmonizing
Ukrainian standards in accordance with international standards of safety and quality of
products in the food industry;
- to create an effective system for controlling the quality and safety of food
products regarding compliance with international standards by Ukrainian food
companies;
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