Confectionery clash between Ukraine and EU
The possible introduction of a 50% tax on confectionery and related products is threatening the Ukrainian confectionery industry, which employs 300,000 people. The EU wants to impose heavy taxes on key Ukrainian industries, a senior Ukrainian diplomat complained, speaking to a small audience in Brussels on 14 February.
Referring to the need for confidentiality, the diplomat refused to name all the sectors concerned, but cited the candy industry as an example of what his country had to lose.
Ukraine’s four major manufacturers have imported machinery from Western countries and have been successfully exporting to Russia. The largest manufacturer, Roshen, grew by 32% in 2010, surpassing the $1 billion threshold, while the production volume reached 410,000 tonnes in 2009.
Russian exports, however, are suffering setbacks over trade barriers and hopes had been to increase exports to the EU but the diplomat said that negotiating a free trade agreement with the EU was a challenge. He noted that Brussels was trying to impose the obligations of an EU member state, while making no commitments and offering little incentive to act.
While negotiations are ongoing, the Commission has declined to comment on the issue.