EU wants re-taxes on agricultural products from Ukraine

It wishes to restore customs duties on large quantities of certain agricultural products from it to support European farmers. Negotiators from EU Member States and the European Parliament agreed on this in Brussels today (20.03. 24) at dawn, reports a report by Handelsblatt. According to Parliament, Ukraine’s specific products are eggs, poultry, sugar, maize, oats, oatmeal and honey. In the future, there will be a certain quota of these products that can be sold duty-free in the EU. Once this quantity has been completed, duties should be paid again. At present, duties will not continue to apply to imports of wheat, although measures may be taken under certain conditions. Under the interim agreement, these rules will apply until June 2025. The EU had suspended customs duties after Russia attacked the neighbouring country in order to strengthen the Ukrainian economy. The agreement now reached must still be formally approved by Parliament and the EU Member States. With the planned reintroduction of trade restrictions for certain agricultural products from Ukraine over a certain quantity, the EU is again moving against farmers. Following strong protests by farmers, the EU Commission had already temporarily allowed less stringent environmental requirements. During the ongoing protests of farmers in the EU, farmers from Poland in particular had called for changes in Ukrainian – European trade policy. Polish farmers have been criticising for months the introduction of cheaper agricultural products from Ukraine. For example, they want to prevent the cheapest Ukrainian wheat from reaching the domestic market. Pressures from Eastern Europe and France After the Russian attack on Ukraine two years ago, Brussels suspended all import duties and quotas for agricultural products from Ukraine in order to help the country financially. There was already a trade agreement with Ukraine, but the additional relief went far beyond it. According to EU Trade Commissioner Valdis Dombrovskis, the EU has never taken such trade facilitation measures before. Farmers from four other eastern EU countries face disproportionate competition due to increased imports of products from Ukraine. Recently, however, pressure from France has also increased. According to French agricultural associations AGPB and AGPM, cereal producers have been weakened by the fall in prices and the explosive increase in costs and have been suffering for months from significant market distortions caused by the influx of Ukrainian cereals into the EU. The pressure from farmers on the streets seems to have a further impact. In September, Trade Commissioner Dobrovskys said about the eastern EU Member States: “We are currently not seeing market distortions in these five Member States”. Hungary, Poland, Slovakia, Romania and Bulgaria had at times reduced imports of certain agricultural products independently. Countess is essentially responsible for EU trade policy. As a rule, EU Member States are not allowed to prohibit certain imports on their own. Thus far, Germany has not criticised trade facilities for Ukraine. Deputy Minister Ana Lührmann from the Green party said in Brussels on Tuesday morning (19.03.24) that the German government is in favour of Ukraine’s ability to continue exporting agricultural products.