Ukraine lifts safeguard duties on Indonesian wires

20 May 2021
Ukraine recently lifted safeguard duty on wire products from Indonesia, giving wider opportunities for domestic manufacturers to export the products to the eastern European country.

The Ukrainian government decided to exempt Indonesia from the safeguard duty after extensive investigation into the issue since July 2020, following complaints from Ukrainian business players that the massive wire imports have disadvantaged them.

Ukrainian Department of Foreign Economic Activity and Trade Protection imposed 23.5 percent in safeguard duty on wire products from foreign countries, except products from Indonesia and other developing countries whose import share was below 3 percent.

The wire products include insulated wires, fibre optic wires and other insulated wire and conductor products.

Trade Minister Muhammad Lutfi welcomed the decision on Tuesday, 18 May 2021, saying it would provide opportunity to Indonesian wire producers to export their products to Ukraine.

“The government welcomes the Ukrainian government’s decision to exempt Indonesian wire products from the safeguard import duty. Of course, this will open and broaden market access to Ukraine,” said Lutfi.

Likewise, acting director general for foreign trade Indrasari Wisnu Wardana said Indonesian exporters could use the opportunities maximally and wisely. “This should become a momentum for Indonesian exporters to increase exports given the fact that safeguard duty was imposed on other countries,” he said.

According to the ministry data, Indonesia’s wire product export to Ukraine in 2018-2020 was only at US$206 million while in fact the Ukraine’s wire product demand stood at $776.43 million in the same period.

Wisnu said he hopes Indonesian exporters can seize the opportunity so that exports to Ukraine, which is a non-traditional market, can grow. Eventually, the bigger export would drive national economic growth during the pandemic.

Trade Ministry’s director for trade safeguard Pradnyawati also welcomed the decision, saying Indonesia had been cooperative during the Ukraine’s investigation. “We have been cooperative during the investigation by submitting written explanation to the Ukrainian authority,” she added.

Statistics Indonesia (BPS) recorded Indonesia’s wire product exports, particularly fiber optic wires, surged 19.51 percent in the past five years, from US$2.59 million in 2016 to $4.37 million in 2020.

The largest export value was recorded at $9.08 million in 2019. Major export destinations for Indonesian fiber optic wires are Japan, Malaysia, Philippines and Singapore.



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