Analysis of Export Policy of Timber Trade in the Conditions of International Economic Activity

Abstract

The position of Ukraine and the EU regarding the moratorium which is introduced on the export of rough wood was considered in the paper. The preconditions for introducing a ban of the exports of timber are analyzed. The analysis and generalization of domestic normative legal acts and international commitments of the WTO and Ukraine, including the Association Agreement between the EU and Ukraine and the General Agreement on Tariffs and Trade (GATT), in the field of forestry regulation, is conducted. The actual problems in the forest product industry of Ukraine are found out. The main objective of the article is to propose recommendations for the development of the export policy of timber trade in conditions of European integration that will not contradict the international obligations of Ukraine. Investigations have shown that in the provisions of the GATT and the Association Agreement there are exceptions, which allow non-compliance of commitments in certain extreme cases. However, in adopted bills there is no ample evidence regarding the necessity of applying or restricting exports. Based on international experience, the impact of the export ban on the timber industry as a whole has been determined. It has been established that the wood-based industry receives positive effects only in the short-term period. However, all sectors of forest product industry will be negatively affected in the long-term period. Recommendations on the development of export policy for timber trade by abolishing import duties and value added tax for equipment for forest-based processing enterprises, the analogues of which are not made in Ukraine, for the purpose of modernization of equipment and further development of the forest-based industry, have been given. Based on the experience of European countries, it is proposed to export timber using the "residual method", that is, primarily to provide raw materials to domestic producers, and to introduce export duties on roundwood production. After analyzing alternative ways of developing Ukraine's export policy regarding timber trade in conditions of European integration, based on the escalation of tariff and tariff barriers, optimal rates of ad valorem and specific export duties have been proposed. With the justified introduction of export duties, the restriction of domestic consumption of timber, the abolition of import duties on the necessary equipment for wood processing, which are not analogous to those produced in Ukraine, all prerequisites for the development of domestic forestry are created.

Analysis of Financial and Economic Activity of State Forest Enterprises in the Conditions of Economic and Ecological Crisis

“…Основними чинниками, які вплинули на даний результат, є надмірні податки в лісовій галузі, зростання плати за використання лісових ресурсів, зростання цін на основні матеріали та запасні частини для виробничих потреб підприємства, нестабільність національної валюти за умови, що лісгосп експортує 55 % усієї продукції. Всі ці перелічені чинники супроводжувалися зниженням попиту на внутрішньому ринку, а відповідно і цін на лісопродукцію (Bublyk et al, 2019;Kuprina et al, 2019). А відтак, те, що підприємства галузі змушені працювати в умовах невизначеності та постійного браку відповідної інформації ускладнюють і так достатньо ризикову (з огляду на вплив природних чинників) діяльність.…”

Republic of Congo’ Wood Products Exported to China: Insight of the Characteristics, Trends, and Perspectives for Sustainable Trade

“…Export policy on timber trade had been analyzed in some studies. The effect of export policy timber trade in Ukraine and the EU relieved that the wood industries positively impacted it, including a short-term period (Bublyk, Petryshyn, & Medvid, 2019). The export tax and the decrease in the permitted annual reduction increased exports of value-added wood products (Donkor, 2003).…”

Study of the product structure of Ukraine's exports in the conditions of globalization

“…Вивченню товарної структури України присвятили свої праці вітчизняні науковці: Бублик М. [1,2], Каленська В. [3], Кривов'язюк І.…”