Business calls for restoration of free trade regime with Belarus

17/ 06/ 2021

In June 2021, Belarus introduced an individual licensing regime for the import of a range of Ukrainian goods. The new regime should be applied to household goods, agricultural machinery, etc. The decision was caused by the fact that the Interdepartmental Commission on International Trade of Ukraine introduced a special duty on imports of wheeled vehicles from the Republic of Belarus to Ukraine. It is worth noting that each batch of goods is subject to licensing. The license fee depends on the type of product, its amount is not significant. However, according to business information, the difficulty is that the license is impossible to obtain because the Belarusian side currently simply does not issue them. This issue is extremely relevant for a number of Ukrainian companies that have already suffered from the introduction of new trade restrictions and suffered losses of millions of dollars. This is not only a loss of export revenue for Ukraine but also a loss of markets that have been captured and maintained for many years. For example, in 2020, Ukraines exports to Belarus amounted to 1.3 billion dollars. This situation has put many producers in a difficult position, as many businesses have cooperated with the neighboring country. Thus, if the situation is not tackled, some Ukrainian companies will be forced to partially close production, cut jobs, and so on. In the absence of a rapid response from the Ukrainian government, the Belarusian market could be lost for years. The losses for both countries can be reduced if both sides reconsider their decisions, which grossly violate the free trade regime. Therefore, the European Business Association calls on the Interdepartmental Commission on International Trade of Ukraine to make every effort to restore the free trade regime. Be the first to learn about the latest EBA news with our Telegram-channel – EBAUkraine.

In June 2021, Belarus introduced an individual licensing regime for the import of a range of Ukrainian goods. The new regime should be applied to household goods, agricultural machinery, etc.

The decision was caused by the fact that the Interdepartmental Commission on International Trade of Ukraine introduced a special duty on imports of wheeled vehicles from the Republic of Belarus to Ukraine.

It is worth noting that each batch of goods is subject to licensing. The license fee depends on the type of product, its amount is not significant. However, according to business information, the difficulty is that the license is impossible to obtain because the Belarusian side currently simply does not issue them.

This issue is extremely relevant for a number of Ukrainian companies that have already suffered from the introduction of new trade restrictions and suffered losses of millions of dollars. This is not only a loss of export revenue for Ukraine but also a loss of markets that have been captured and maintained for many years. For example, in 2020, Ukraine’s exports to Belarus amounted to 1.3 billion dollars.

This situation has put many producers in a difficult position, as many businesses have cooperated with the neighboring country. Thus, if the situation is not tackled, some Ukrainian companies will be forced to partially close production, cut jobs, and so on. In the absence of a rapid response from the Ukrainian government, the Belarusian market could be lost for years.

The losses for both countries can be reduced if both sides reconsider their decisions, which grossly violate the free trade regime.

Therefore, the European Business Association calls on the Interdepartmental Commission on International Trade of Ukraine to make every effort to restore the free trade regime.

Be the first to learn about the latest EBA news with our Telegram-channel – EBAUkraine.