Pridnestrovian exporters and government to resolve problem of access to foreign markets

01/12/17 19:30

Pridnestrovian exporters and government to resolve problem of access to foreign markets

In 11 months of 2016 Pridnestrovian exports decreased by 13% compared to the same period in 2015

Tiraspol, 12 January. /Novosti Pridnestrovya/. Prime minister Alexander Martynov has called on businessmen to help the government to boost the foreign economic activities of Pridnestrovian companies. During a meeting of the Union of Industrialists, Agrarians and Entrepreneurs of Pridnestrovie (SPAPP), he announced the establishment of a working group for developing a «roadmap» to support exports and ensure access of Pridnestrovian manufacturers to foreign markets.

In compliance with the government decree signed by Martynov the day before, the working group includes the leadership of the Ministry of Economic Development, customs, Ministry of Regional Development, Ministry of Justice and the Ministry of Foreign Affairs. Representatives of SPAPP and Pridnestrovie's Chamber of Industry and Commerce were also invited to take part in the work of the group.

«It is essential for us that both problem-raising and problem-solving come, first of all, from you [entrepreneurs]. We do not need abstract solutions… Both president and prime minister are expecting your proposals, a clear-cut identification of the problems," Alexander Martynov told businessmen.

The package of measures facilitating the access of Pridnestrovian goods to foreign markets should be submitted to the government no later than 1 May 2017. It is proposed that the roadmap will be based on exporters' proposals about customs barriers, tax burden and tariff policy.

In 11 months of 2016 exports decreased by 13% compared to the same period of the previous year. For the whole of 2015 Pridnestrovian exports had fallen by 17%. In the meantime, for several years exports to Russia have remained at a fairly low level of 8−8.5% due to the devaluation of the Russian rouble and the Russian government's import-substitution policy. As a result, on the one hand, Pridnestrovian goods proved to be uncompetitive in price and, on the other hand, they were included in the list of foreign products subject to substitution by Russian manufacturers.

Given that Pridnestrovie strives for integration with Russia, including economic one, it is necessary in the coming years to gradually redress this foreign trade imbalance. This work has already been under way for several years. Thanks to the mediation of the Russian vice premier, Dmitry Rogozin, ties have been established with several Russian regions, but in general, the problems is still open.

«It is not a problem of the Russian Federation, but rather Pridnestrovie's omission," Martynov believes.

According to some exporters, the situation can be improved by eliminating the barriers Russia has introduces against Pridnestrovian goods. To do this, they propose that Russian oversight authorities should conduct an inspection of Pridnestrovian plants.

 

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