Employers' federation to ask government, EC not to annul moratorium on round timber exports
The Federation of Employers of Ukraine intends to ask Ukraine's Cabinet of Ministers and the European Commission (EC) not to annul a moratorium on round timber exports until the moment when Ukraine properly regulates the market, in particular, via adoption of a separate law on the unprocessed wood market.
"The moratorium is not a goal, but a tool to regulate the market. Of course, there are other tools – exports duty, preferences for domestic producers and processors or direct contracts for honest companies. Today the unprocessed wood market is not regulated. However, neither government nor Agricultural Policy and Food Ministry and State Forest Agency have made any steps to discuss the situation with producers," Director of the Federation's department Serhiy Salivon said at a press conference on Wednesday.
He said that the bill drawn up by the Economic Development and Trade Ministry (under the Ukraine-EU Association Agreement) was not discussed with wood processors. It creates new problems related to corruption," Salivon said.
"It [the bill] was not approved by anyone. It does not settle any problem. With annulling the moratorium it creates new problems linked to corruption," he said.
A representative of the Ukrainian Organization of Wood Processing Industry Liudmyla Hurina said that the ministry's bill creates additional red tape obstacles instead of protecting domestic producers.
Representatives of wood processing associations said that the introduction of the moratorium helped to attract investment in the sector and create new production facilities.
A representative of the Ukrainian Association of Wood Processing Companies Dmytro Artemchuk said that the annulment of the moratorium could result in appearance of some offshore companies using which wood will be sold.
"Officials would open these offshore companies abroad and will sell unprocessed wood. This would increase the shortage of unprocessed wood and cause price hikes. We would not be able to compete," he said.
The press conference participants back drawing up measures to regulate the market.