pennews
www.pennews.net
India & Ukraine identify potential sectors for bilateral trade
International

India & Ukraine identify potential sectors for bilateral trade

Agency News

New Delhi, Apr 2 : India and Ukraine have identified potential sectors where both sides could engage in bilateral trade since presently the share of trade between both sides is quite low as compared to total trade made with the rest of the world. Both sides agreed to share the list of products which they would like to trade.

The 4th Meeting of India-Ukraine Working Group on Trade and Economic Cooperation (IU-WGTEC), under the India-Ukraine Inter-Governmental Commission on Trade, Economic, Scientific, Technical, Industrial and Cultural Cooperation was held here on Tuesday.

Indian delegation was led by Bidyut Behari Swain, Additional Secretary, Foreign Trade (CIS), Department of Commerce, Ministry of Commerce and Industry, while the Ukrainian side was led by Oleksiy Rozhkov, Director of Directorate for International Trade and Economic Cooperation and European Integration of the Ministry of Economic Development and Trade of Ukraine.

A protocol was signed at the end of the meeting. The protocol deals with review of trade, cooperation in the field of small and medium entrepreneurship, cooperation in the field of technical regulation (standardization, metrology, certification, conformity assessment), public-private partnership (PPP) and investment, agriculture, facilitating the access of Ukrainian food products to the market of India, energy sector, finance, granting Ukraine market economy status within the framework of anti-dumping investigations, and banking and cooperation in tourism.

Status of Trade of the two sides was reviewed.

In 2017-18, exports from India was USD 330.10 million, imports from Ukraine at USD 2355.97 million and total trade at USD 2686.07 million.

In 2018-19 (Apr-Feb) (Prov), exports from India was USD 305.73 million, imports from Ukraine at USD 1921.70 million and total trade at USD 2227.43 million.

Both sides agreed that trade was far below the potential and there was a need to step up their cooperation to enlarge the trade basket and increase the bilateral trade and investment. There is trade deficit on the part of Indian side and both sides agreed to find out the modalities to reduce it further.

Both sides should participate in the major fairs/exhibitions in the identified potential sectors. Both sides agreed to share the details of the fairs / exhibitions to each other sufficiently in advance to ensure participation.

In order to promote trade, both sides should share the mandatory inspections’ / regulations’ requirement to be fulfilled at the time of exporting / importing of any product so that any delay related to such inspection could be reduced and it will also create a positive atmosphere for doing business.

Indian side informed about various Export Promotion Councils and other export related institutions from where one can get the details of exporters /importers and agreed to share the list of such institutions. It requested Ukrainian side to share such list of institutions so that exporters/importers from both Sides could interact and through this mechanism bilateral trade could be facilitated and enhanced.

Both sides should share and exchange information between banking and financial institutions in order to expand cooperation to facilitate export-import transactions between the companies.

Both sides agreed to share official information about identifying a single window cell in their respective countries for clarifying the queries of the exporters and in supporting them in identifying the suitable buyers/sellers.

Indian side expressed happiness on the participation of Ukrainian side in Partnership Summit 2019 organized by Confederation of Indian Industry (CII).

The two sides agreed to provide all possible assistance in establishing and maintaining cooperation between Chamber of Commerce and Industry of Ukraine, Ukrainian National Committee of ICC, Ukrainian Union of Industrialists and Entrepreneurs with Trade Associations and Export Promotion Councils of Indian side in establishing B2B contacts.

Indian side informed Ukrainian side regarding the National Small Industries Corporation’s (NSIC) activities and requested Ukrainian side for identifying a nodal agency which can cooperate with NSIC in Small and Medium Enterprises (SME) sector on a mutually agreed terms in the following fields:

Ukrainian side informed regarding the approval by the Government of the Strategy for the development of Small and Medium businesses for the period up to 2020.

Indian Side stated that India’s market share in Ukraine’s imports of leather goods and footwear is less than 1 per cent and this is mainly due to the high rates of import duty in Ukraine. Indian side requested Ukrainian side to consider bringing down the import duties to a uniform level of 5 per cent for leather goods for footwear.

Indian side informed Ukrainian side that India is a large producer of tobacco and tobacco products and requested Ukrainian Side for considering imports of tobacco and tobacco products as the Ukraine’s imports of tobacco and tobacco products range from 60,000 to 79,000 MT.

The duty structure for gems and jewellery products is on higher side in Ukraine, including a VAT of 20 per cent, total duty for gold jewellery and cut & polished diamonds is around 30 per cent. Indian side requested Ukrainian side for duty reduction on gold jewellery and cut & polished diamonds. (UNI)