Contrary to the government’s statements: EU reinstates duties on Ukrainian eggs and sugar and reduces quotas for the future
2 July 2024 13:52
On 2 July, the European Union reintroduced duties on Ukrainian eggs and sugar, contrary to the statements of the Ukrainian government. This was reported by "Komersant Ukrainian" reports with reference to the European Commission’s report.
As the EC reminded, the new rules of “duty-free trade” provide for duties for seven agricultural products that are automatically activated when imports reach the average annual level recorded between 1 July 2021 and 31 December 2023. This value is 23,188.96 tonnes for eggs and 262,652.68 tonnes for sugar. Ukraine has already surpassed both figures.
“Since the import of eggs and sugar from Ukraine since the beginning of 2024 already exceeds the volumes set in the tariff quota of the DCFTA (Deep and Comprehensive Free Trade Area), additional imports will continue with the most favoured nation (MFN) duties,”
– the statement said.
Further, the Deep and Comprehensive Free Trade Area is apparently being “deepened” even further, as quotas for 2025 are reduced by about 2.5 times.
“From 1 January 2025 and until 5 June 2025, a new tariff quota is introduced, corresponding to five-twelfths of the threshold set for the emergency braking. For eggs, the new quota is set at 9,662.07 tonnes, and for sugar – 109,438.62 tonnes,”
– the European Commission reports.
Ukraine’s export performance in these sectors has grown significantly in recent years. In 2022, Ukraine exported 32,000 tonnes of egg products, and in 2023, this figure rose to 57,000 tonnes. As for sugar, exports increased from around 181,000 tonnes in 2022 to 508,000 tonnes in 2023.
The day before, Deputy Prime Minister for European Integration Olha Stefanishyna denied that the EC was planning to return duties, but it turned out that the information was true.
As reported 
, having reached the appropriate volume of supplies, Ukraine stopped exporting sugar to the EU at the end of May.
Earlier, the EU reintroduced duties on Ukrainian oats.
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. Over the course of two years, 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.
