The Twenty-Seven agreed, Wednesday March 27, to tighten the cap on certain customs-cleared agricultural imports from Ukraine by adjusting the limit levels, but without restricting the volumes of wheat, as demanded by several States, including France and the Poland.
The ambassadors of the Member States adopted a slightly modified version of the agreement reached on March 20 between State negotiators and MEPs to renew for one year, from June, the customs exemption granted to Ukraine and accompanied by restrictions.
This text was the subject of divergences between the States which wished to protect their markets more strictly, in particular by capping wheat and lowering the ceiling levels, and the States intending to protect Kiev’s commercial revenues.
Granted since 2022 to support Ukraine in the face of the Russian invasion, this exemption from customs duties fuels the anger of European farmers, who accuse the influx of Ukrainian products of weighing down local prices and resulting in competition. “disloyal”.
“Corrective measures”
According to the agreement, Brussels will be able to quickly adopt “corrective measures” in case of “significant disruptions” on the market, even in a single country, with increased monitoring of cereal flows. Importantly, imports of poultry, eggs, sugar, corn, honey and oats exempt from customs duties would be capped at the level of volumes imported in 2022-2023, above which tariffs would be automatically reimposed.
The compromise ratified on Wednesday “remains the same, with one addition: the reference period for the activation of the “safeguard mechanism” [niveau du plafonnement automatique] would be extended to the second half of 2021 »according to a diplomat, referring to “an extremely delicate balance”.
France demanded the extension of this reference period to the entire year 2021, arguing that the volumes for 2022-2023 correspond to already massive imports. The European Parliament also said it was in favor, but several states fiercely refused.
Before this adjustment, Brussels predicted that the planned restrictions would reduce Ukrainian exports to the European Union (EU) by around 240 million euros in total compared to 2023. Now, MEPs will consider the amended text before a vote final in plenary in April, with a view to entry into force by the expiry of the current customs exemption on June 5.
Soft wheat and barley excluded
On the other hand, the capping mechanism still does not include soft wheat and barley, as demanded by several States – France, Poland and Hungary in the lead – in unison with agricultural organizations, and as initially desired by MEPs. To ratify it, a qualified majority of States was required (fifteen countries representing 65% of the EU population).
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“We have a destabilization of the cereal markets”because of “Russian strategy to prevent Ukraine from going to its traditional markets” in Africa and the Middle East, the French Minister of Agriculture, Marc Fesneau, argued on Tuesday. He then defended “balanced demands”saying he was concerned to avoid eroding “the support of public opinion” to Ukraine in the EU.
“Sea routes via the Black Sea are working again, Ukrainian products will find their markets”observed his Hungarian counterpart, Istvan Nagy. “Without the inclusion of wheat, [l’accord] unacceptable “ for Budapest, he warned.
The text adopted on Wednesday, prepared by the Belgian presidency of the Council of the EU, ultimately contains only a commitment “reinforced” of the European Commission to activate safeguard measures in the event of market imbalance, particularly for cereals.
On Tuesday, German Agriculture Minister Cem Ozdemir said he was hostile to any revision of the initial agreement. “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! »he was annoyed.
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 him “provides about 1% of its total egg consumption, 2% of its poultry consumption: what Ukrainian refugees could easily consume”Ukrainian Agriculture Minister Mykola Solsky explained to Agence France-Presse on Monday.