EU plans to impose duties on a number of Ukrainian goods
16 July 2024 10:10
The European Union is preparing to impose duties on almost all Ukrainian goods subject to the emergency braking mechanism. This was stated by the European Commissioner for Agriculture Janusz Wojciechowski, according to "Komersant Ukrainian" with reference to Ukrinform.
Earlier, the EU reimposed duties on Ukrainian sugar, eggs and oats, and now, according to the commissioner, Ukraine is rapidly approaching the limits of duty-free trade with the EU in honey, corn and chicken.
Wojciechowski said:
“The closest is honey, whose exports have already reached 89% of the limits, corn – 67%, and chicken – 59%.”
He also emphasised the effectiveness of the safeguard measures, which have already been activated for sugar, eggs and oats.
The European Commissioner refuted accusations that the EU is overly dependent on imports, stressing the record surplus in agricultural trade.
“Last year, the EU’s agricultural trade surplus reached a record 70 billion euros. This year, this record can be overcome, as in the first quarter alone, the EU’s trade surplus with third countries has already reached 18 billion euros,”
– wojciechowski said.
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 take 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.
