Last week’s events give some hope that the deep crisis which has gripped Venezuela’s economy in the past few years could end, or at least that the country may head towards economic recovery soon. It is, however, worthwhile to again review the dimensions and the causes of the crisis.
In compliance with the requirements of the International Monetary Fund, Ukraine has split its previously combined fiscal service into separate tax and customs agencies. This is a step in the right direction, which should be followed by re-orienting the customs to serve businesses and promote cross-border trade.
The first steps of the long-awaited customs reform in Ukraine started in 2017 only to be cancelled at the beginning of 2018. Meanwhile, customs clearance in the country remains lengthy and complicated, which is reflected in Ukraine’s low positions in comparative international rankings.
What exactly does Ukraine sell to the EU? Has the trade structure changed during last three years taking into account multiple factors such as improved access to the EU market, lower global commodity prices, and economic crisis of 2014-2015?
Chinese steel is a typical strawman for U.S. politicians. Employment in the U.S. steel industry fell dramatically indeed. There were around 780,000 employees in the sector in the late 1960s and the industry was producing 115 million tons of steel. Today, there are less than 100,000 employees.
Ukrainian exporters say that inefficient and non-transparent VAT refunds system and high levels of bureaucracy are the biggest obstacles for export. The survey also reveals that smaller enterprises tend to be more burdened by complicated customs procedures and lack of transparency in the operation of tax agencies.
The experience of dealing with Russia over the past 200 years has taught us that the only thing Russia respects is power; and we will only have power if we stay close to our friends. However, soon thereafter any such pragmatism was once again forgotten and we now continue living with our illusions as if nothing has happened.
On January 1, 2016, provisional application of the Deep and Comprehensive Free Trade Area (DCFTA) with the EU started, which lowers duties on the EU goods. Import duty surcharge (at 5-10%) was cancelled. Further we try to analyse impact of these events on international trade.
It is settled that provisional application of Deep and Comprehensive Free Trade Area (DCFTA) between Ukraine and the EU will start since January 1, 2016. In a response, Russia is expected to increase trade barriers vis-à-vis Ukrainian goods.
Today, when we talk about increasing the export capacity of Ukraine, we can hear about the need to focus on exporting the high-tech products, products with high value added and a high level of processing – it seems very attractive because all of the above are important “export benchmarks” which should be strived for.