The European Union divided over agricultural restrictions to impose on Ukraine

Highlights: The European Union divided over agricultural restrictions to impose on Ukraine. The EU has granted Kiev an exemption from customs duties since 2022 to support the country in the face of the Russian invasion. This is considered insufficient by some States, including France, which wishes to extend these restrictions to wheat. “There is no agreement” on the inclusion of wheat, admitted Tuesday the Belgian Minister of Agriculture, David Clarinval, on the sidelines of a meeting with his European counterparts. According to Brussels, a new cap would include wheat and barley, with a reference period extended to 2021, with exports to the EU of around 1.2 billion euros compared to 2023.

The Twenty-Seven examine, on Wednesday, the project to cap certain agricultural imports from Ukraine. This is considered insufficient by some States, including France, which…

Towards a restriction of Ukrainian agriculture in the European Union? The Twenty-Seven examine, Wednesday March 27, the project to cap certain agricultural imports from Ukraine, considered insufficient by some of the States, including France, which wish to extend these restrictions to wheat.

The file will be discussed at a meeting of member state ambassadors. “There is no agreement” on the inclusion of wheat, admitted Tuesday the Belgian Minister of Agriculture, David Clarinval, on the sidelines of a meeting with his European counterparts.

“We are enough countries to have a blocking minority, to ask for the evolution” of the text, warned the French Minister of Agriculture, Marc Fesneau.

This is a reason for agricultural anger: the EU has granted Kiev an exemption from customs duties since 2022 to support the country in the face of the Russian invasion. European farmers accuse the influx of Ukrainian products of lowering local prices and of "unfair" competition, failing to meet the same standards.

“Destabilization of grain markets”

State negotiators and MEPs agreed on March 20 to renew the customs exemption for one year, from June, but by capping imports of poultry, eggs, sugar, corn and oats at the volumes imported in 2022-2023, at -above which tariffs would be reimposed.

See alsoImports from Ukraine and fallow land: the European Commission's pledges to farmers

This mechanism does not include soft wheat and barley, as demanded by MEPs and agricultural organizations but also by several States – France and Poland in the lead.

“We have a destabilization of the cereal markets”, due to “the Russian strategy of preventing Ukraine from going to its traditional markets” in Africa and the Middle East, argues Marc Fesneau.

“The maritime routes via the Black Sea are working again, Ukrainian products will find their markets,” adds his Hungarian counterpart Istvan Nagy. “Without the inclusion of wheat, (the agreement) is unacceptable” for Budapest, he warns.

Paris also defends the extension to 2021 of the capping reference period, arguing that the volumes of 2022-2023 correspond to already massive imports.

The agreement concluded last week must be formally validated by the European Parliament, during a plenary vote in April, and by the States by qualified majority (15 countries representing 65% of the EU population). Any amendment must be approved by both parties.

Berlin calls for “not to repeat Russian propaganda”

“Our proposals are balanced, I am hopeful that we will find common ground,” said Marc Fesneau, keen to avoid agricultural imbalances which would erode “public support” for Ukraine.

Conversely, Berlin says it is hostile to any revision. “A compromise has been negotiated, we must stick to it!”, said the German Minister of Agriculture, Cem Özdemir. "Many do not understand that the defense of Ukraine, and therefore the defense of all of us, is not only about providing ammunition, but also about not repeating Russian propaganda according to which the problematic drop in grain prices is due to Ukrainian deliveries. There is no proof of this!”

kyiv does not hide its incomprehension. "We are disappointed. Ukraine has filled a sugar deficit in the EU", preventing prices from soaring too much, and "provides it with around 1% of its total egg consumption, 2% of its egg consumption, poultry: what Ukrainian refugees could easily consume,” Ukrainian Agriculture Minister Mykola Solsky told AFP.

European restrictions will have little influence on wheat prices "set in Chicago", weighed down by abundant Brazilian, Argentinian and American harvests, he added.

Also to be reviewedAgriculture in Ukraine: the world's breadbasket put to the test of war

According to Brussels, a cap which, in addition to the initial text, would include wheat and barley, with a reference period extended to 2021, would reduce Ukrainian exports to the EU by a total of around 1.2 billion euros compared to 2023 .

The European Union divided over agricultural restrictions to impose on Ukraine

“Destabilization of grain markets”

Berlin calls for “not to repeat Russian propaganda”

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