AUCC and the China National Agriculture Wholesale Market Association (CAWA) Agreed to Cooperate in the Promotion of Ukrainian Agricultural Products to China
On March 29, 2016 in Beijing, the Embassy of Ukraine in China hosted a meeting of the leadership of the Association of Ukrainian-Chinese Cooperation (AUCC) and the China National Agriculture Wholesale Market Association (CAWA).
The meeting was attended by Ambassador Extraordinary and Plenipotentiary of Ukraine to the PRC Oleg Dyomin, Minister Counselor for Trade and Economic Affairs of the Embassy of Ukraine in the People's Republic of China Viktor Tanasiychuk, Chairman of the AUCC Board, Co-Chairman of the Ukrainian-Chinese Business Council (UCBC) Robert Brovdi, Vice Chairman of AUCC and UCBC and permanent representative of these organizations in Beijing Igor Litvin, and President of the China National Agriculture Wholesale Market Association (CAWA) Mr. Ma Zengjun.
It should be noted that business contacts between Ukrainian and Chinese associations began in August 2015. At that time, during the first meeting and negotiations in Beijing by the AUCC and CAWA leadership there was a common position and mutual interest of the parties in intensification of trade in agricultural products between the two countries. After all, both associations can be of considerable help in this regard. On the one hand, the AUCC directly and as a co-founder of the AUCC Ukrainian Part uniting in its ranks many domestic exporters interested in presence in the Chinese market. On the other hand, the CAWA association which unites more than 300 large (with an annual turnover of at least 100 million Yuan) wholesale agricultural markets in China and is one of the leading structures in the field of planning, regulation and provision of the food sector of the country.
Further contacts and communication, in particular at the 8th All-China Exhibition on International Trade in Agricultural Products organized by CAWA (November 2015 in Zhenzhou) showed the need for closer communication and signing of a framework document on cooperation, and became the main reason for a new meeting of the leadership of associations.
In opening it, Chairman of the AUCC Board and UCBC Co-Chairman Robert Brovdi briefed President of the CAWA Chinese Association with new trends and export dynamics of the Ukrainian agribusiness. It was noted that China ranked first among the importers of Ukrainian agricultural products in 2015. Intra-country trade in these products amounted to USD 1,300,000,000, and more than 130 Ukrainian companies were able to successfully enter the Chinese market.
According to Robert Brovdi, agricultural products from Ukraine have become recognized and competitive in China. The potential and prospects for increasing its supplies are very serious, and the interest of Ukrainian exporters to the Chinese market is very large. Even more so, the food demand of the world's largest consumer, which is China, is steadily growing, and Ukraine is already part of a narrow range of supplier countries (especially grain and vegetable oils). According to him, increasing the Chinese consumer's access to quality Ukrainian products and increasing the volume and range of bilateral trade is precisely the aim of associations such as AUCC and CAWA.
In his turn, President of the Chinese Association Ma Zengjun noted the need for speedy deepening of business relations between the two structures, stressing that the place chosen for the negotiations and signing of bilateral documents testifying to the great attention of the Ukrainian state to the expansion of trade cooperation with China and active support of exporters. In his opinion, the cooperation with Ukrainian manufacturers and suppliers is very relevant in the context of "green" and "organic" consumer trends, as well as the challenges set by the Chinese side to saturate its own food market with high-quality and eco products.
During the meeting, the parties discussed the interaction between the two structures and identified the algorithm for establishing cooperation between Ukrainian producers and vendors and leading distributors of products on the Chinese market. As a result of the negotiations, Robert Brovdi and Ma Zengjun signed a Memorandum of Understanding between AUCC and CAWA on cooperation in the promotion and trade of agricultural products between the Association of Ukrainian-Chinese Cooperation and the China National Agriculture Wholesale Market Association. The document covers various areas and forms of cooperation and provides for close cooperation between the two structures.
Within the framework of the signed document, the parties will cooperate in the areas of exchange and sharing of market information, promote effective trade activities and increase business opportunities for both countries. Among other things, the parties plan to exchange information on the products' availability and demand, sales opportunities and mechanisms, registered and licensed entities, as well as to contribute in every way to the expansion of potential markets and business opportunities for agricultural products. A bilateral working group is envisaged to implement the objectives of the Memorandum.
At the end of the meeting, the participants of the meeting expressed their conviction that due to their constructive joint actions, AUCC and CAWA associations will be able to play the role of an effective communicator and assistant in the interaction between the interested business structures of Ukraine and China in the future.