Turkish Business Strengthens Its Interest in Ukraine

Turkish businesses are strengthening their interest in Ukraine. The trade representative and several representatives of large Turkish companies once again met with their Ukrainian colleagues from the Ukrainian Union of Industrialists and Entrepreneurs (USPP). The main topic of discussion was removing barriers to investments in Ukrainian enterprises, particularly in the agricultural and light industries. Turkish entrepreneurs are also urging the acceleration of the Free Trade Agreement (FTA) between the two countries, requesting support from Ukraine’s business community.

"Recently, a Ukrainian-Turkish agricultural forum took place in Kyiv, which was attended by over 130 companies from our country. This demonstrates the level of interest. During 2016 alone, four Turkish companies approached me as a trade representative, expressing interest in investing in the light industry. However, they had to abandon their plans after learning about the high customs duties required for imports into Ukraine," said Haydar Koçak, Trade Representative of the Turkish Embassy in Ukraine.

He once again assured the Ukrainian side that the prospect of the FTA is beneficial for Ukraine, which accounts for 80% of exports and only 20% of imports in bilateral trade.

However, according to him, Ukrainian exports, particularly of metallurgical products, are declining: Turkey reduced imports of these goods from Ukraine by 20% in 2016.

In turn, USPP President Anatoliy Kinakh noted that Ukrainian businesses support expanding economic ties with Turkey’s economy as a whole and specific sectors and enterprises in particular. At the same time, it is crucial to find a balance of interests for both countries and include it in the upcoming FTA. In this context, it is highly desirable that not only government officials but also businesses participate in shaping the agreement. Additionally, he suggested initiating maximum localization of production in Ukraine, leveraging the country’s existing raw material resources.

"For importing products and resources that are not available in Ukraine, it is essential to create favorable conditions. Everything should focus on launching and modernizing production so that we export not grain but, for example, pasta, flour, etc. — goods with added value," he emphasized.

The USPP President expressed satisfaction with the systematic communication with Turkish businesses and assured his colleagues of continued efforts to improve the investment climate in Ukraine, create equal competitive conditions, and more.

Source: USPP