In Rada registered a law on localization, which allows to increase GDP by 4%

В Раде зарегистрирован закон о локализации, позволяющий повысить ВВП на 4%

The Verkhovna Rada registered the bill # 3739 “On public procurement” on the creation of prerequisites for sustainable development and modernization of the domestic industry”

The draft law was submitted to Parliament today, June 24, reported on the website of BP.

The authors of the bill are deputies Dmitry Kisilevskiy, Dmitry Nataluha and others – in total, 37 people’s deputies, including the heads of parliamentary factions and groups, heads of parliamentary committees, members of the Committee for economic development.

“Year after year our country is becoming an economic colony export more raw materials and increasing import of high-tech products. We declare victory the purchase of American locomotives, and French helicopters. Happy Polish Belarusian trams and trolleybuses, – commented on his page in Facebook Dmitry Kisilevskiy. – Coronavirus reinforced the deplorable state of the Ukrainian industry, which has been falling for the 11th month. Unfortunately, our country does not have the ability to “pour money” its economy, as did the US, EU and China. But we can still require that the goods, which the state buys have been partially or fully produced in Ukraine. Exactly how long ago did other countries.”

He noted that in the US and the EU the penetration rate of imports in public procurement does not exceed 5%, in Ukraine – about 50%. “The US, EU and even the CIS countries give preference to their own producers – they are the relevant laws. In the USA – Buy American Act, the EU Directive 2014/25/ ° C., which enables the customer to reject the tender offer in a number of industries, if the proportion of the European component of less than 50%,” – said the MP.

According to him, the bill on localizing the market offers to investors who invest in the production in Ukraine. “I want to get a contract, paid the money of Ukrainian citizens – post or localizou production in Ukraine. Create jobs for Ukrainian citizens and pay taxes to the budget of the Ukrainian cities”, – said D. Kisilevsky.

“If Ukrzaliznytsya wants to buy a locomotive GE, Alstom, Siemens or any other – please. But provided that they will carry out a 30% localization of production. City hall wants to buy a Mercedes garbage truck – no problem. You can get it from any company that Mercedes will produce the body, hydraulics, etc. the Trolley – the same. There are Ukrainian manufacturers of trolleybuses, there are companies like Yuzhmash, which can make localization for imported trolleybuses”, – cited the example of the MP.

According to him, the adoption of the bill will provide the following economic impact:

– GDP growth of 3.9 p. p. in the next 3-5 years;

– the creation of 62.5 thousand new jobs;

– increase tax revenues by approximately 8%.

The law applies to four of the mechanical engineering sub-sector: railway transport, public passenger transport, municipal vehicles and buses, power engineering; provides a localization requirement at the level of 25-40%. It also determines the localization of the qualifying criteria for participation in the procurement, the method of determining the degree of localization approved by the Cabinet of Ministers.

The law also will allow to create in Ukraine competition of local manufacturers of either the localizers for those commodity items that are offered in localization.

The Verkhovna Rada