A number of leading agrarian associations have appealed to the Prime Minister of Ukraine with a request to influence the resolution of the situation on the possible deterioration of trade conditions with the European Union in agro-food products, the press service of the Ukrainian Club of Agrarian Business (UCAB) reported.
The association was reminded that on June 6, 2024, the EU’s additional trade preferences for Ukraine, under which the existing customs tariffs and tariff quotas for all categories of goods were canceled for Ukrainian exports, will expire. On January 31, the European Commission officially published a draft EU Regulation on the extension of autonomous trade preferences for Ukraine for the next calendar year (from June 6, 2024 to June 5, 2025).
It is stated that the draft regulation introduces restrictions on imports to the EU of certain groups of goods (chicken, sugar and eggs) “sensitive” for European agricultural producers. In particular, it is proposed to renew the tariff quotas agreed within the framework of the Full and Comprehensive Free Trade Area between Ukraine and the EU for these commodity groups if from January 1, 2024 the volumes of their imports from Ukraine exceed the arithmetic average of import volumes for 2022-2023. According to EU legislation, the draft regulation still has to be considered in the European Parliament and the EU Council of Ministers.
“For the agri-food sector of Ukraine, these preferences were particularly important, canceling a number of tariff quotas on imports to the EU market for key export goods – from cereals and oilseeds to sugar, poultry meat, eggs, fruit and vegetable products – and providing an opportunity for Ukrainian exporters to maintain production, jobs and ensure the receipt of foreign currency earnings during 2022-2023,” the associations noted in their appeal.
At the same time, they cited data from the State Customs Service, according to which agro-exports of Ukraine for 2023 amounted to 61% of total exports of goods from Ukraine and were equivalent to $21.9 billion, compared to 53% and $23.4 billion respectively a year earlier.
At the same time, the EU’s share in total agri-food exports from Ukraine in 2023 amounted to 56.6% (55.1% in 2022), or $12.4 billion ($12.9 billion respectively).
“The issue of maintaining maximum open access for Ukrainian agri-food products to the EU market will be vital for Ukraine’s trade balance in the coming years and the survival of Ukraine’s agricultural sector. If trade restrictions are implemented, Ukraine will face a significant reduction in foreign currency earnings from exports of major agri-food products,” the business community predicts.
Agrarian associations called on the government to facilitate access of Ukrainian agro-products to the EU market and the establishment of a direct dialog with European partners. In particular, they ask to include in the agenda of the next Ukraine-EU Summit the issues of continuation of autonomous trade preferences for Ukrainian agro-food products with minimum restrictions and preservation of the activity of the Ukraine-EU Trade Coordination Platform as the main platform for exchange of information on current issues in trade.
The appeal was signed by the All-Ukrainian Agrarian Forum, the Ukrainian Agrarian Business Club, the Agrarian Union of Ukraine, the All-Ukrainian Agrarian Rada, the Union of Poultry Farmers of Ukraine, and the Ukrainian Agrarian Confederation.
leading agrarian associations, trade conditions with the European Union, Ukrainian Club of Agrarian Business
