Chemical
ver the past three years,
this export segment has been shrinking due to an unfavourable market situation.
For instance, in 1999 alone, product supplies declined by 15.3 per cent (nearly
200m dollars). In addition, growth in the export of chemical products is restrained
by high energy consumption, dependence on imports of raw materials (especially,
gas, oil and styrene) and environmental harmfulness. This sector of foreign trade
gains some stability from the inertia of demand in post-Soviet states, which are
the main consumers of Ukraine's chemical products.
echanical engineering. During
1992-99, the share of this industry in Ukraine's production pattern dropped to
33 per cent and, correspondingly, it accounted for only 12 per cent of exports
in 1999. This was mainly caused by the break-up of cooperation ties with post-Soviet
and post-CEMA [Council for Mutual Economic Assistance] countries and a rise in
relative prices for energy supplies and materials which sharply decreased the
competitiveness of Ukraine's machine-building plants.
Metallurgy
evenues in foreign currency
largely depend on the capricious situation on foreign markets, competitors' actions
and protectionist measures by the importing countries. Attempts at expanding exports
by lowering prices lead to antidumping actions against Ukrainian exporters and
ultimately diminish the profitability of metallurgy product supplies. In 1999,
the physical volume of metal product exports grew by 26.5 per cent, while its
monetary worth dropped by 7.5 per cent. In essence, the export of metallurgy products
is often aimed to hold on to foreign markets and ensure foreign currency revenues
at any cost, rather than to ensure high economic efficiency.
Agriculture
uffice it to cite several
sad examples to make clear the situation in this sector. Example number one: 2000
sees a shortage of grain supply on the domestic market, for the first time in
the past few years. In 1999, Turkey was one of the main importers of Ukrainian
grain, whereas in 2000 it is Ukraine that imports grain from Turkey. We are losing
our foreign sales markets and turning from a grain exporter into an importer.
Example number two: in the past few years, Ukraine has lost its leading position
in Europe in beet sugar production, as well as its sales markets for this product
in the CIS countries, primarily Russia. Example number three: following the introduction
of customs duty on exports at 23 per cent in 1999, the export of sunflower shrank
to nearly 10 per cent on 1998.
