EU states approved on Wednesday the renewal of the exemption from customs duties for Ukrainian agricultural imports, but accompanied by reinforced “safeguard mechanisms” to limit their impact, at the heart of recent demonstrations by farmers across the ‘Europe. The Twenty-Seven ambassadors validated the European Commission’s proposal aimed at renewing for one year, from June, this suspension of customs duties for products from Ukraine and Moldova entering the EU. The text must now be approved by MEPs during a vote in plenary session in April.
“Corrective measures”
“We are showing our unwavering support for Ukraine, while protecting our internal market from an excessive increase in imports of certain sensitive agricultural products,” responded Hadja Lahbib, Belgian Minister of Foreign Affairs, whose country holds the rotating presidency of the EU. Farmers accuse the influx of cereals, eggs and chickens from Ukraine of lowering local prices, particularly in neighboring countries, and of maintaining “unfair” competition due to failure to meet certain standards (mass-raised poultry, etc.). . Imports of Ukrainian agricultural products jumped by 11% in value year-on-year in January-September 2023.
A particularly sensitive subject in Poland, where the blocking of the border by angry farmers has caused a violent crisis between Warsaw and kyiv in recent days. To address their concerns, the European Commission’s proposal includes “remedial measures” that can be quickly adopted in the event of “significant disruptions” in the market, including if they only affect a single Member State. Above all, for three products qualified as “sensitive” – poultry, eggs and sugar -, an “emergency brake” is planned to “stabilize” imports at average volumes imported in 2022 and 2023, levels beyond which customs duties would be reimposed.
Drastically tighten restrictions
Endorsed as is by the ambassadors, this arsenal of restrictions will remain supervised by Brussels, contrary to the embargo imposed unilaterally in 2023 by neighboring states of Ukraine to the great dismay of the Commission, watchdog of trade policy. The agricultural sector, however, considers these new safeguards insufficient. In addition to the still very strong anger of Polish farmers, Copa-Cogeca – the powerful organization bringing together the majority agricultural unions – and five sectoral associations called in mid-February for restrictions to be drastically tightened.
The proposed cap for three products corresponds to high volumes “which precisely caused” the current crisis, while “no restrictions are planned (automatically) for cereals and honey despite the significant Ukrainian production capacity”, they lamented in a joint press release. “This approach will fail to address farmers’ concerns, and will likely lead to further protests,” they warned.