The Ukrainian steel products supply to Turkey does not threaten the local steelmaking industry. The uaprom.info reported this, citing the Business edition.
According to the edition, the Ukrainian Government agreed with the European Union and Canada to create the Free Trade Zone until the end of 2017 and they finish the negotiations with Turkey and Israel to sign the Free Trade Zone Agreement (FTZA).
According to the mass media, the list of the sensitive items is discussed at the moment. They compose the export potential of Ukraine. Ukraine agreed 20 of 22 thousand of items and the steelmaking industry got to the sensitive list.
‘The import customs duties for the Ukrainian rolled metal products functions in Turkey and for the flat-rolled products it is 9-10%, for the half-finished goods – 22%, for the armature and rolled wire – 25-31%’, the edition reported. It shows that Ukraine is given a chance to get rid of the customs duties within the Free Trade Zone Agreement with Turkey.
According to the experts, the lobby via Turkey Producers Association opposes the signing of the FTZA between Turkey and Ukraine. They offer to exclude the steel rolled metal products from the agreement because it can influence the local steelmaking industry, taking into account the geographical proximity of these countries.
The analytics and the market players notice that the Turkish steelmakers should not be afraid of the Ukrainian colleagues. First of all, the loss of the steelmaking powers of the occupied Donbas will lead to the decrease of the steelmaking. The second reason is that the inner market of Ukraine needs more and more steel production to maintain the existing infrastructure and create the new objects.
Moreover, according to the edition, the export of the Ukrainian rolled metal products to Turkey shows the decreasing for the last 3 years.
