The EU proposes to calculate quotas for the import of agricultural products from Ukraine in accordance with pre-war volumes

The compromise draft of the trade agreement with Ukraine was approved by the EU on March 27. It takes into account the demands of Poland and France and foresees new quotas for the import of agricultural products, which will be calculated from the volumes of 2021, not 2022-2023, as now. Ukraine's losses due to the reduction of imports may reach 331 million euros.

After the full-scale invasion of the Russian Federation into Ukraine, the EU canceled quotas and duties on the supply of Ukrainian products, but the period of validity of the trade liberalization measures ends on June 5, 2024, so a new agreement is already being worked out.

Previous agreements provided for a quick reaction of the European Commission to distortions of the EU markets caused by Ukrainian products, as well as the introduction of restrictions on the import of poultry meat, eggs, sugar, oats, corn, groats, and honey from Ukraine to the EU, if the volumes of their deliveries exceed the average volumes of imports for the last 2 years.

Poland and France demanded that the average import figure be calculated on the basis of data for 2021 - before the full-scale invasion of the Russian Federation, in which they were supported by Italy, Austria and Hungary. Because in 2022-2023, the blocking of sea exports led to an increase in the flow of Ukrainian products to the EU by land routes.

The European Union agreed to calculate imports on the basis of data for the second half of 2021. Wheat and barley will not fall under quantitative restrictions, but in general, supplies of agricultural products from Ukraine to the EU will decrease. According to the estimates of the European Commission, Ukraine's losses from such a decision will amount to 86 million euros, and in general, due to the new terms of trade, the budget of Ukraine will be shortchanged by 331 million euros.

The previous draft agreement agreed with the European Parliament provided that quotas for the next period (which will begin in June 2024) will be calculated based on the volume of imports of agricultural products from Ukraine for 2022-2023, when duties and quotas have already been abolished. But the Netherlands, Germany, Finland, the Baltic countries and Luxembourg opposed it. The ambassadors of the EU member states must make the final decision on March 27, after which it must be approved by the European Parliament.

Duty-free import of agricultural products from Ukraine to the EU was introduced in June 2022, and then extended for another year. But it is opposed by Polish farmers who organize protests and block highways.