After criticism of the previous compromise: EU tightens customs requirements for Ukrainian food again

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A Ukrainian farmer sowing seeds: end of tariff relief

Photo: Mykola Miakshykov / Ukrinform / IMAGO

It was only around three weeks ago that EU states agreed to end the duty-free period for agricultural products from Ukraine. But now negotiators from the European Parliament and the EU states have decided on even stricter customs requirements for certain foods. Specifically, it concerns poultry, eggs, sugar, oats, corn, semolina and honey, as the European Parliament announced. Goods affected by the rules will then only be allowed to be imported into the EU duty-free up to a certain amount. When this amount is reached, tariffs will be due again.

The agreement still needs to be officially approved by the European Parliament and the EU states. The requirements should apply from July 6th for a period of one year. How much of a burden the tariffs will have on the Ukrainian economy also depends on whether the country attacked by Russia finds other buyers for its goods.

The first compromise reached between Parliament and EU states stipulated that the quantities from which taxes would be required would be based on the average of imports in 2022 and 2023. But for some people that didn't go far enough.

Farmer representatives, among others, argued that the entire year 2021 should also be included in the calculation. This would reduce the free quotas for Ukrainian products. The compromise that has now been found provides for the second half of 2021 to be included in the calculation.

Current customs relief for Ukraine will expire in the summer

The background to the debate is that the EU exempted Ukrainian goods from tariffs shortly after the start of Russia's war of aggression on its neighboring country. This was intended to strengthen the country's economy. The current customs relief for Ukraine will expire in the summer. If no new regulation is approved by then, the measure will expire without replacement.

Support through tariff exemption is a thorn in the side of many farmers, especially in the east of the EU. They face disproportionate competition from cheap agricultural imports from Ukraine. Hungary advocated that in the future only a certain amount of Ukrainian wheat would be allowed to be brought into the EU duty-free. There were also voices from France calling for stricter customs rules.

For example, if wheat prices in the EU collapse due to Ukrainian imports, the EU Commission is likely to take action. Based on the planned rules, Parliament said it could “introduce the measures it deems necessary.” There is debate about how strong the impact of Ukrainian exports on the EU market actually is.

Ukraine is an important global producer of wheat; people in poorer countries in particular rely on cheap grain from the Eastern European country. Because of the Russian attack on the EU's neighboring country, wheat could temporarily not be transported out of the country via the sea route, which is important for trade. The prices for wheat had risen significantly in the meantime.

eru/dpa