OPR- Wednesday, 9th July, 2008

Mr President

Distinguished Guests

Ladies and Gentlemen

It is a particular pleasure to be here in this beautiful city of Kiev, capital of Ukraine, a country which has gone through significant historic changes in recent years and it is an honour to be able to address you this afternoon at this first Malta/Ukraine Business Forum. Like most of you, distinguished business people, I share a sincere aspiration and desire to find ways to establish new partnerships and to expand trade and investment opportunities between the companies of our two countries. 

Strategically located in the centre of the Mediterranean Sea, between Sicily and North Africa, Malta’s unique geographical position makes it an ideal hub for business transactions in the region. Likewise, the geographical position of Ukraine, spanning both Asia and Europe and bordering no less than seven countries, is also exceptionally favourable for transnational business.  Our companies can work together rather than act as competitors.

Malta joined the European Union in 2004 and ever since we have been able to benefit from the enlargement of the European Union eastwards, both politically as well as economically. The EU and Ukraine now share a border as direct neighbours. Malta regards Ukraine and other countries in Central and Eastern Europe as important markets. And we view our differences as strong points which make us suitable trading partners with great business perspectives.

Since gaining independence Ukraine has been following a European direction in its economic and foreign policies. Negotiations on the New Enhanced Agreement have continued to integrate the Ukrainian economy progressively in the internal market and going beyond the Partnership and Cooperation Agreement and the EU-Ukraine Action Plan wherever possible. The launch of the negotiations on the comprehensive EU/Ukraine free trade area in February of this year is testimony to Ukraine’s European aspirations and I take this opportunity today to reiterate our support for Ukraine’s European choice.

Another important milestone in Ukraine’s integration into the global economy has been its accession to the World Trade Organisation just two months ago and I applaud President Yushchenko and the Ukrainian people on this achievement. I would also like to congratulate your country together with Poland on having won the bid to host the prestigious football tournament,   Euro 2012.

Malta views Ukraine as a country with abundant resources and great economic potential. Its economy has gone through a remarkable development over the past decade and there is increasing optimism and willingness to invest in the country. There are several areas where our two countries can, through their competitive and comparative advantages, work together and benefit from each others’ experiences

In the last couple of years, Malta has gone through a period of considerable fiscal consolidation and economic adjustments. Having satisfied the Maastricht criteria, I am pleased to say that six months ago, in January 2008, Malta has successfully adopted the Euro as its national currency in what has been considered a very smooth changeover.

Yet, entering monetary union is only the starting point of a period of fresh structural reforms as Malta strives to achieve the higher standards of living of other euro area Member States.  More intensive structural reforms are needed as the island is projecting itself as a regional centre of excellence in hospitality, health care, maritime business, financial services, information technology and educational services. Malta considers its human resources to be one of its major strength and has placed education, training and employment high on its reform agenda. 

Today, Malta can no longer compete on the basis of low wages. Global competition is increasing at a persistent pace. Like many other countries, Malta is also facing these global challenges against a background of surging commodity prices, turmoil in international financial markets and environmental degradation.

Way back in November 2002, a comprehensive presentation on “Doing Business in Ukraine” was held in the premises of the Maltese Chamber of Commerce. Following that presentation, various initiatives were taken to strengthen ties.  I am also pleased to say that a number of Maltese companies are now actively involved with their Ukrainian counterparts in business operations in several economic sectors. This notwithstanding, commercial relations between Malta and Ukraine remain well below their potential. The presence here today of Maltese entrepreneurs testifies to the good will that exists for increasing commercial interaction.

We hope to continue this positive cooperation so that our combined efforts will lead to mutual gains.  Allow me therefore to mention a few indicative areas where we can foster further cooperation, including the setting up of joint ventures between our two countries.  These include tourism, hotel management, education, including the teaching of English as a foreign language,  banking and other financial services, maritime activities, aviation and aviation engineering, healthcare and pharmaceuticals, electronics and information technology, software industries, business consultancy, telecommunications, infrastructural and other construction works, e-business and e-government and issues relating to EU regulatory reforms.  

I would like to conclude my brief remarks by thanking our hosts most sincerely for their efforts in coordinating this Business Forum.
 

I hope that the discussions today will be fruitful and lead to a further strengthening of business relations between our two countries.