Export duties on soybeans and rapeseed: Business community warns of risks to Ukraine’s agricultural sector and economy
26 March 10:29
The American Chamber of Commerce in Ukraine, together with international grain traders, economists, and representatives of the agricultural sector, discussed the consequences of imposing export duties on soybeans and rapeseed. Due to the introduction of export duties on soybeans and rapeseed, Ukrainian farmers lost approximately $200 million, and Ukraine lost about $1 billion in export revenue. This was stated by the Committee on Agribusiness of the American Chamber of Commerce in Ukraine (ACC) during a press breakfast, according to "Komersant Ukrainian"
We explain why these duties sparked debate and what risks the business community sees.
What happened
Export duties on soybeans and rapeseed were introduced on September 4, 2025, in accordance with Law No. 4536-IX.
These changes provide for:
- the introduction of a 10% export duty on soybeans;
- the introduction of a 10% duty on rapeseed exports;
- encouraging domestic processing of oilseeds.
At the same time, international businesses are warning of the potential negative consequences of this decision.
Why businesses oppose the tariffs
Representatives of the American Chamber of Commerce and the agricultural market cite several risks:
1. Distortion of competition
Tariffs can create unequal conditions for different market participants and artificially prop up certain industries.
2. Risks to European integration
According to the business community, such restrictions may contradict the principles of the Association Agreement between Ukraine and the EU, which provides for the gradual elimination of trade barriers.
3. Violation of the principle of tax stability
Businesses note that tax changes should be implemented well in advance so that companies can adapt to the new conditions.
4. Deterioration of the investment climate
Unpredictable changes to the rules can undermine investor confidence.
How tariffs affect farmers
According to estimates by agricultural market experts:
- farmers could lose 5–8% of their income;
- losses could amount to $40–50 per ton of produce;
- there may be a reduction in planted acreage;
- oilseed exports may decline.
What the economic calculations show
According to estimates by experts at the Kyiv School of Economics:
Regarding rapeseed:
- the budget could receive about 6.2 billion UAH;
- farmers could lose about 7.6–7.7 billion UAH;
- total economic losses could amount to up to 170 million UAH.
For soybeans:
- the budget could receive 4.1–4.7 billion UAH;
- farmers could lose over 9 billion UAH;
- Net economic losses could amount to up to 500 million UAH.
Total economic losses could reach 280–670 million UAH.
What are the arguments of the tariffs’ supporters?
At the same time, proponents of the new rules believe that tariffs can:
- support the Ukrainian processing industry;
- stimulate the production of value-added goods;
- increase tax revenues;
- develop the domestic market.
Why this issue is important during wartime
Agricultural exports remain one of the key sources of foreign exchange earnings for Ukraine.
Any restrictions could affect:
- foreign exchange earnings;
- the stability of the agricultural sector;
- Ukraine’s international reputation;
- food security.
The introduction of export duties on soybeans and rapeseed has sparked a heated debate between the government and the business community. Market representatives are calling for an open dialogue to find a balance between supporting the processing industry and the interests of farmers and exporters.
