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Ukraine’s export white paper: furniture manufacturers join the discussion on challenges, barriers and prospects

On November 18, 2024, a discussion was held on Ukraine’s Export White Paper — a strategic document that will serve as the foundation for the country’s future export strategy. The event was initiated by Advanter Group, which invited representatives from various economic sectors, including the IT cluster, agriculture, the food industry, and the Ukrainian Association of Furniture Manufacturers.

Key Challenges and Barriers

 

Russia’s full-scale invasion has significantly altered the opportunities available to Ukrainian businesses in international markets. Major obstacles include power supply disruptions, the destruction of logistics routes, and a focus on raw material exports for survival. These factors have reduced trade diversification and increased dependence on specific markets.

A significant challenge for the furniture industry is the planned lifting of the moratorium on timber exports in 2027 and the implementation of the EU Deforestation Regulation (EUDR). Without proper regulation, Ukrainian manufacturers risk losing competitiveness in the global market.

Prospects and Strategic Directions for Development

 

Oksana Donska, a member of UAFM’s Board, emphasized the importance of enhancing processing capabilities and increasing innovation in Ukrainian exports. She noted that these goals are unattainable without boosting the number of students in engineering fields.
“In 2014, the most popular major among applicants was ‘Psychology’ (49,782 applications), while only 358 students chose ‘Woodworking and Furniture Technologies,’” highlighted Ms. Donska.

For furniture manufacturers, the implementation of the “Law on the Timber Market” is crucial to avoid harm to the industry after the moratorium is lifted. At the same time, government support is needed to promote products in international markets. Poland and Turkey already showcase effective models, including covering up to 90% of expenses for participating in international exhibitions, provided a three-year event calendar is followed.

National Branding and Value-Added Exports

 

Ukraine must focus on creating products with high added value. Key steps include developing high-tech manufacturing, modernizing transportation infrastructure, and creating a national brand. These measures will help overcome the country’s negative image and enhance its global competitiveness.

The Export White Paper also highlights the need for digital platforms for businesses, optimizing customs administration, and simplifying access to credit. Active government participation in global economic alliances could open new opportunities for Ukrainian exports, even under challenging conditions.

This document serves as a basis for coordinated action among the government, businesses, and experts, laying the groundwork for a sustainable export model for post-war Ukraine.

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