The European Union has decided to reinstate tariffs on agricultural imports from Ukraine, following intense pressure from Eastern European member states. This move comes as the current duty-free trade regime is set to expire on June 5. The EU had initially abolished tariffs and quotas on Ukrainian agricultural produce in February 2022, after the escalation of the Ukraine conflict, in an effort to support the war-torn country’s economy.
The special regulations, known as Autonomous Trade Measures (ATMs), allowed grain and other farm products from Ukraine to reach global markets without facing tariffs. However, the influx of cheap Ukrainian produce into Eastern European countries led to widespread protests among local farmers, particularly in Poland. The protesters argued that they could no longer compete with the tariff-exempt goods, and as a result, some restrictions have already been reintroduced over the past year.
The latest move, endorsed by a majority of EU nations, introduces “transitional measures” that will phase out the ATMs and reimpose certain trade controls. This means that Ukrainian agricultural goods, such as oats, sugar, and eggs, will once again be subject to tariffs and quotas. The decision is likely to have significant economic implications for Ukraine, with the chair of the Ukrainian Parliament’s economic affairs committee, Dmitry Natalukha, estimating that the move could cost Kiev over €3 billion ($3.4 billion). This amount is equivalent to around 70% of the country’s projected total economic growth for the current year.
The EU’s decision to reimpose tariffs on Ukrainian agricultural imports is a response to the concerns of its Eastern European member states. Poland, Hungary, Slovakia, and other countries neighboring Ukraine have been vocal about the need to protect their farmers from the influx of cheap Ukrainian produce. The move is seen as a way to strike a balance between supporting Ukraine’s economy and protecting the interests of EU farmers.
The reimposition of tariffs on Ukrainian agricultural imports is a significant development in the EU’s trade policy. It highlights the challenges of navigating complex trade relationships and balancing the interests of different member states. As the EU continues to grapple with the implications of the Ukraine conflict, it remains to be seen how this decision will impact the EU’s trade relationships with other countries. One thing is certain, however: the move will have far-reaching consequences for Ukraine’s economy and its ability to export agricultural goods to the EU.
