OREANDA-NEWS. January 17, 2014. The Government is obliged to find favorable conditions of implementation of the Agreement on Free Trade Area with the EU for Ukraine in the part of metallurgic engineering industry. The Prime Minister of Ukraine Mykola Azarov stressed during the Cabinet of Ministers of Ukraine.

The Head of Government underlined that in the relation of metallurgic production and manufacturing of ready-made metal goods the majority of customs fees between Ukraine and the EU had been slashed to a zero as a result of entering Ukraine into the WTO, however the FTA envisaged further fall of customs fees.

“Taking into account low added value of Ukrainian export of metal goods it can lead to further loss of competitiveness,” Mykola Azarov stressed.

Besides, according to him, the metallurgists can face sharp growth of the cost of products through higher expenses for raw materials and environmental protection measures. So, the rates of export duties for scrap of alloyed steel, scrap of non-ferrous metals and semifinished products of their use, and also stainless steel will decrease from 15% to 0% after the transitional period finishes, while implementation of environmental conditions of the agreement will need significant investments.

“Put it simply, unless to envisage the conditions of protecting of our metallurgy, in several years it will become more profitable to cut metal in Ukraine and sell it to recast than to put money into workplaces in Ukraine. It is an unaffordable way for us, as it concerns the key complex of our industry, which embraces hundred thousands of workers of coal, mining branches, power economy, transports etc. Incomes of these workers are the source for life for small and average business and so on. That’s why we must find favourable conditions of implementation of this part of the Agreement with the EU for Ukraine,” Mykola Azarov said.