New deal promises growth in Ukraine
Thailand and Ukraine expect to increase two-way trade and investment 20-30 per cent under a new agreement to tighten economic cooperation, Commerce Minister Krirk-krai Jirapaet said yesterday.
Last year, Thailand enjoyed a trade surplus of US$43.8 million (Bt1.52 billion) with Ukraine after four years of trade between the two. Bilateral trade was worth $138.3 million last year, up 49 per cent from 2005. Krirk-krai said closer cooperation would allow Ukraine to become a gateway for Thai exports and enterprises to Eastern Europe and the Commonwealth of Independent States, while Thailand would offer a gateway to Asia for Ukrainian exports. He was speaking following a meeting with Ukrainian Deputy Economy Minister Valeriy Pyatnitskyi, in which details of the closer cooperation pact were discussed. Thailand's Trade Negotiations Department will draft plans for closer cooperation and organise a two-way trade mission later this year. The Kingdom will also host an initial business meeting soon, to promote trade and investment between the two countries. Krirk-krai said he would lead a Thai trade mission to penetrate the Ukrainian and Kazakh markets in the middle of next month. Thailand's potential export products to Ukraine include microwave ovens, refrigerators, electronic appliances, fresh and processed fruit, aquaculture products and jewellery. Major imports from Ukraine are steel, ore, chemical products, wood and processed wood and machinery. Under the cooperation plan, the two countries will eliminate tariff barriers and other trade obstacles. Ukraine has a complicated tariff collection system and a high rate of import duties ranging from 2 per cent to 70 per cent. The average tariff is 16.3 per cent. Steel imported from Ukraine is currently subject to a 27.95-per-cent anti-dumping duty in Thailand. The Kingdom has agreed to revise the anti-dumping duty for Ukrainian steel imports by mid-year. Krirk-krai said Ukrainian companies were interested in investing in rubber produc- tion here for export back to Ukraine. Other potential investment sectors include energy development, processed food, electronics and agricultural products like sugar. The cooperation agreement also covers the promotion of tourism. At present, 4,000 to 5,000 Ukrainian tourists visit Thailand each year.
Petchanet Pratruangkrai The Nation
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