EBA urges Ukraine to prevent introduction of additional customs duties by Turkey on confectionary products

 The European Business Association (EBA) has called on relevant state agencies to take urgent measures in order to prevent the introduction of additional customs duties by Turkey on Ukrainian confectionary products.

"On August 20, Presidential Decree No. 31204 of Turkish President will enter into force. This Decree introduces additional customs duties on 115 goods, including the confectionery products. Thus, the confectionery imported into Turkey will be subject to an additional duty of 15% to 20%, except for products from the EU and countries with which Turkey has signed Free Trade Agreements," the EBA said in a statement posted on its website on Monday, August 17.

Ukrainian sugar and chocolate confectionery products will be subjected to an additional duty of 20%, flour confectionery – of 15%, it said.

"In this regard, the European Business Association calls on the responsible authorities of Ukraine to take immediate measures to prevent the Republic of Turkey from raising customs duties on Ukrainian confectionery," the association said.

According to the EBA, at present, access to the Turkish market is already significantly complicated for Ukrainian confectionery producers as Turkey has applied high import duty rates and an additional tariff on the agricultural component (thus, the confectionery is subjected to the total duty of 35-45%).

The introduction of additional duties by the Turkish side will make it economically impractical to export Ukrainian confectionery to Turkey and, in fact, completely block the exports of this product category.

"At the same time, Turkish products enter the Ukrainian market in much better terms. The level of import duty rates for imported Turkish confectionery ranges from 5 to 15%. Therefore, the decision of the Turkish authorities to raise customs rates significantly worsens the existing unequal conditions for Ukraine to access the Turkish market and creates a non-competitive environment for Ukrainian producers," the EBA said.

Source: www.en.interfax.com.ua