The European Union has renewed its tariff exemption for Ukrainian imports for one year, extending the agreement initially granted in 2022. However, the renewed agreement introduces safeguards to prevent the influx of cheap imports, including oats, eggs, poultry, and sugar, from flooding the market. Notably, wheat and barley have been excluded from the safeguard list.
Under the new regulation, an “emergency brake” mechanism will be implemented for poultry, eggs, sugar, oats, maize, groats, and honey imports, as announced by the European Parliament. The move aims to address concerns raised by EU farmers who have complained about being undercut by cheaper Ukrainian imports not subject to the same stringent EU regulations, particularly regarding animal welfare.
The decision to extend tariff-free entry for Ukrainian products comes amidst ongoing tensions between Ukraine and Russia, with the EU aiming to support Ukraine’s economy in the face of conflict. However, the influx of Ukrainian imports has sparked discontent among EU farmers, leading to protests, such as those witnessed in Poland, where farmers have blocked checkpoints with Ukraine and expanded protests to the western border with Germany.
While the European Commission initially proposed extending tariff-free entry, the EU Parliament insisted on including safeguards to protect certain products from price erosion due to increased imports. The revised proposal, which gained approval from member states, also extends the reference period and includes grain and honey among the capped products.
The decision reflects a delicate balance between supporting Ukrainian imports and addressing the concerns of EU farmers, particularly with European Parliament elections approaching. Far-right parties have capitalized on farmers’ discontent in their campaigning, making it a prominent issue in the political landscape.
Additionally, the EU is considering restrictions on Russian agricultural imports, further indicating a response to farmer grievances. Measures are also being explored to facilitate Ukrainian agricultural products’ return to their original markets in Africa and the Middle East, which were impacted by the conflict, to prevent them from being blocked in Europe.
