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Why Ukrainian exports to the EU falls - business view

In last year's April, the EU autonomous trade preferences were enacted. Their adoption - a gesture of EU's assistance to the Ukrainian exporters. For more than a year, the Ukrainian goods are being exported to the EU at zero duty, while the Ukrainian market, as before, is protected from European imports.

A significant positive effect of the actions of autonomous trade preferences were seen in the second quarter of last year - by the end of this quarter, exports to the EU increased by more than 30%. However, the results of subsequent months were much worse, and in the fourth quarter of 2014 Ukrainian exports to the EU showed a drop. In 2015, this recession will not only continue, but also deepen. According to the State Statistics Service, in January-May 2015 it was down by 33.5%, which is almost identical to the general index - a drop of 35.9%. The decline in Ukrainian exports to Russia amounted for more than 60%.

The main reason for the fall of Ukrainian exports to the EU is not that the companies are working in the ATO zone. The businesses that simply lose its share of the European market just can not adapt to the new conditions. However, there are other obstacles to the active usage of EU preferences. According to a survey of business, a significant part entrepreneurs are simply not aware of the opportunities of opened European markets. This was stated by 20% of respondents in the first place - small and medium-sized businesses.

Why Ukrainian exports to the EU falls - business view