Whether the EU will return duties on Ukrainian eggs and sugar: Media confirm, government denies
27 June 2024 16:37
The EU plans to reintroduce duties on Ukrainian sugar and eggs, but the Ukrainian government denies this information, reports "Komersant Ukrainian"
According to a report by the Financial Times, the European Union intends to reintroduce duties on imports of Ukrainian sugar and eggs from Friday, 28 June. This decision is part of the “emergency brake” introduced to calm EU farmers who protested earlier this year.
According to the FT, the duties will be 419 euros per tonne of white sugar, 339 euros per tonne of raw sugar and 30 cents per kilogram of eggs. The decision follows the recent reintroduction of a €89 per tonne duty on Ukrainian oats.
Taras Kachka, Ukraine’s trade representative, commented to the FT. According to him, the EU’s decision is in line with the current duty-free trade agreement, but the Ukrainian side is working to improve it:
“Our goal is to remove all bilateral obstacles that do not comply with the agreement.”
However, Deputy Prime Minister for European Integration Olha Stefanishyna denied this information.
“No new decisions on the return of duties on Ukrainian goods by the EU are planned for today.”
– yevropeiska Pravda quoted her as saying.
The preferential trade regime and its enemies
The decision to allow the free import of Ukrainian goods into the EU was made by the EU at the beginning of the full-scale Russian invasion as a gesture of support for the Ukrainian economy and in response to the Russian naval blockade of Ukrainian ports. During the two years of its operation, the simplified regime has gained a lot of opponents in the EU. In particular, the governments of Bulgaria, Poland, Hungary, Romania and Slovakia demanded that imports of Ukrainian products be restricted (later France joined this position). They claim that cheap agricultural products from Ukraine are swallowing up their markets.
Six major European farmers’ associations also protested strongly against Ukrainian products. Polish farmers have even staged a border blockade, not only with Ukraine but also with Germany.
Nevertheless, after a tough debate, the simplified trade regime with Ukraine was extended until 5 June 2025. However, at the request of these countries, it was severely restricted.
Thus, the provisions on duty-free trade were amended to include further “safeguards” to protect European producers.
In particular, the European Commission may apply any measures it deems necessary if imports from Ukraine cause “significant disturbances” on the EU market or the markets of one or more EU Member States. In such a case, the European Commission may launch an “emergency brake” for particularly sensitive agricultural products. This list includes the following products:
- poultry
- eggs
- sugar
- oats
- cereals
- corn;
- honey.
However, the European Commission has not only options but also responsibilities. If imports of these goods exceed the average import volumes recorded in the second half of 2021 and for the whole of 2022 and 2023, customs tariffs must be restored within 14 days.
Thus, the EU has effectively reintroduced import quotas for many Ukrainian goods, albeit at a rather high level.
For example, the EU has already reinstated duties on Ukrainian oats.
