The EU and Kiev are negotiating a new trade agreement that will set quotas for agricultural imports from Ukraine, Reuters reported, citing European Commissioner for Agriculture and Food Christoph Hansen, BTA reports.
At the same time, the community is resuming tariffs and quotas for Ukrainian agricultural products from today, hoping to reach an agreement that provides for lower tariffs than those in force over the past three years, according to the European Commissioner.
The EU temporarily lifted tariffs and quotas on agricultural imports in June 2022. following Russia's full-scale invasion to help Ukraine after Russia threatened its traditional shipping routes across the Black Sea.
Brussels and Kiev are negotiating a new long-term agreement in which the EU seeks to strike a balance between supporting Ukraine in its war with Russia and addressing concerns of European farmers about cheaper Ukrainian imports.
"What will be agreed will be something between the quotas under the existing Deep and Comprehensive Free Trade Agreement (DCFTA) and the volumes under the Autonomous Trade Measures (ATM) Regulation," EU Commissioner Christoph Hansen told Reuters.
The agreement covers trade between Ukraine and the EU since before the war, while the Autonomous Trade Measures Regulation, which represents liberalized trade with Ukraine, entered into force on June 4, 2022. for a period of one year, temporarily suspended quotas for Ukrainian imports into the community.
Ukrainian Minister of Agrarian Policy and Food, Vitaly Koval, told Reuters this week that Kiev was pushing for an agreement on higher quotas than it had before the war.
EU farmers have complained that large shipments of cheaper Ukrainian sugar imports under wartime tariff exemptions have undermined local supplies. The EU has been applying "emergency brakes" to reintroduce quotas on products including sugar and eggs over the past year in response to rising imports.
EU imports of Ukrainian sugar rose to 400,000 tonnes in the 2022/23 season and over 500,000 tonnes in the 2023/24 season, significantly exceeding the pre-war quota of 20,000 tonnes.
Hansen said the new sugar quotas would be "significantly higher" than those in the pre-war agreements.
"I think we can absorb a certain amount of these products," he said, noting the sensitive issues surrounding sugar, poultry and eggs.
Negotiations on the new agreement between the EU and Ukraine began on June 2. Hansen said it was possible to reach an agreement by the summer. "Now it depends on both sides, I think technically it could be done," he said.
Agricultural goods accounted for about 60 percent of Ukraine's total exports last year, with the EU buying about 60 percent of those goods, worth about $15 billion.
The loss of duty-free access to the EU market could cost Kiev 3.5 billion euros ($3.99 billion) in annual revenue, Koval said last month.
"Our solidarity with Ukraine is stronger than ever, and that's why we are very committed to implementing this agreement as quickly as possible," Hansen said.
The pre-war quota regime, which comes into effect today, also includes relaxed rules on import licenses for some goods such as poultry and eggs.