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.