EU member states and the European Parliament have agreed to reimpose import duties on several Ukrainian agricultural products. This means that Kiev’s commercial advantages will be partially withdrawn, under pressure from farmers from the east of the Union and France.

The two parties agreed to expand the list of agricultural products subject to quotas to include corn, oats, groats, and honey. When a certain quantity is imported into the EU, Ukraine does not have to pay import duties. Once this amount is exceeded, Ukraine will still have to pay customs duties.

Wheat, among other things, remains exempt from import duties, but the European Commission has announced that it will also take action on wheat if Ukrainian imports increase. The fee deferral has been extended by one year at a time and is now in effect until June 2025.

The European Parliament says that through these measures it listened to European farmers who fear unfair competition from importing Ukrainian products. “Russia’s attacks on Ukraine and its food production also affect EU farmers,” says the CDU MEP. “The Parliament has listened to their concerns and strengthened protectionist measures that will ease pressure on EU farmers if they are overwhelmed by a sudden increase in Ukrainian imports.” . Calnet from Latvia. He added: “At the same time, the agreement reinforces the European Union’s continued commitment to helping Ukraine confront the brutal war with Russia.”

After the Russian invasion of Ukraine in February 2022, import duties on Ukrainian agricultural products were suspended to maintain the stability of the Ukrainian economy. Ukrainian farmers were unable to get rid of their grain because Russia temporarily closed the usual export route through the Black Sea. The grains were transported mainly via the mainland, leading to protests in Poland, Hungary, Bulgaria and Slovakia. Farmers set up barriers at border crossings to prevent products from entering Ukraine.

They spoke of unfair competition and felt that Ukrainian products were flooding the European market. But the price of grain is not only affected by Ukraine. Russia also sells its grains around the world, and has been doing so for years at artificially low prices.

As compensation, at the end of January, the authority proposed imposing restrictions on poultry, eggs, and sugar. Trade tariffs will be applied again if import volumes for 2022 and 2023 are exceeded.

The majority of member states agreed to this, but it was not enough for the European Parliament. Last week, the majority demanded that new products be added and that quantities from 2021 to 2023 serve as a frame of reference. Since there is no war yet in 2021 and import volumes are lower then, this limit will be reached more quickly.

A number of Eastern European countries have supported Parliament’s demand, but no agreement has yet been reached. But that changed last Friday when France also sided with Parliament. Paris did so following ongoing farmer protests in France and a decline in opinion polls for Macron’s party in the upcoming European elections.

In the end, the Parliament did not fully achieve its goal, because it was decided that 2022 and 2023 would remain the frame of reference, which therefore constitutes unexpected gains for Ukraine.