After weeks of intense negotiations, a consensus has been reached on implementing stricter EU import controls on Ukrainian agricultural merchandise. However the resolution, which seems considerably paradoxical given the EU’s vocal help for Kyiv, has drawn criticism from Ukrainian farmers.
The European Parliament’s commerce committee gave the inexperienced gentle to the renewal of the so-called EU’s autonomous commerce measures (ATMs) on Tuesday (9 April), following an settlement by EU member states and MEPs on Monday.
In response to issues raised by neighbouring frontline nations, led by Poland, co-legislators agreed to impose tariffs in emergency circumstances on presently duty-free imports of Ukrainian poultry, eggs, sugar, oats, maize, groats and honey (however not exhausting limits on wheat).
However Ukrainian farmers have slammed the EU resolution, arguing that there isn’t a financial justification for such measures and that such restrictions will restrict Ukraine’s monetary means to struggle Russia.
“Regretfully, short-sighted political pursuits prevailed over the sense of solidarity and urgency to behave,” the Affiliation Ukrainian Agribusiness Membership mentioned in a press release.
“Europe’s solidarity with Ukraine should be upheld with deeds, not phrases alone,” additionally they mentioned.
The duty-free commerce coverage with beleaguered however non-EU Ukraine was activated in June 2022, to help Kyiv after Russia’s full-scale invasion. An extension additionally occurred in 2023.
However frontline neighbouring states have since raised issues that their native markets and producers have skilled disruptions as a result of a surge in cheaper Ukrainian imports, prompting some governments to set off unilateral measures.
Final yr, 5 EU member states — Poland, Bulgaria, Hungary, Romania, and Slovakia — imposed momentary bans on Ukrainian grain imports.
Nonetheless, regardless of the bans being unlawful, three — the Polish, Hungarian, and Slovak restrictions — have remained in place since April 2023.
Whereas the fee has not taken any motion in response to those violations of EU commerce laws, Kyiv filed a grievance towards the three member states on the World Commerce Group (WTO) in September of final yr. The case stays on standby.
Over the last European Council in March, Ukrainian president Volodymyr Zelensky warned EU leaders towards imposing restrictions on Ukraine’s grain, arguing that losses of their revenues would solely profit Russia.
However in latest months the brand new Polish authorities of prime minister Donald Tusk has been dealing with strain from home farmers, who’ve been demanding curbs on Ukrainian imports and expressing frustration towards EU insurance policies.
French function
Underneath the compromise reached on Monday by EU nations and MEPs in the course of the so-called trilogues, the reference interval to find out if imports exceed a sure threshold has been prolonged to incorporate the second half of 2021.
Because of this tariffs in emergency circumstances will probably be robotically activated if imports of Ukrainian poultry, eggs, sugar, oats, maize, groats and honey exceed the arithmetic imply of portions from the second half of 2021, 2022 and 2023.
But when one or a number of member states sign a disruption of their home markets, the fee may additionally take motion and, for instance, reintroduce tariffs.
General it’s estimated that new measures agreed this week may price the Ukrainian economic system €330m, in response to figures from the fee.
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Beforehand, an settlement had been reached protecting solely the interval 2022-2023. However the French authorities, additionally pressurised by its farmers, joined frontline nations pushing to increase the reference interval to the second half of 2021 — consistent with the EU parliament place.
“Underneath this new settlement with the council, we now have fortified safeguards to guard EU farmers in case of market turbulence sparked by Ukrainian imports,” mentioned centre-right Latvian MEP Sandra Kalniete.
Everlasting options?
New commerce measures will enter into drive in June and can apply to Ukrainian exports till mid-2025, however the European Fee has pledged to discover a extra everlasting answer with a renewed EU-Ukraine Affiliation Settlement (DCFTA).
The EU govt has additionally dedicated to monitoring imports of grain, significantly wheat, and its focus of such imports in frontline EU nations — having the ability to set off safeguards measures if obligatory.
The European Parliament is now anticipated to undertake the proposal within the second plenary session in April. Afterwards, EU members will give it the ultimate inexperienced gentle.
