Ukraine’s farmers slam EU import controls on food products

In response to concerns raised by neighbouring frontline countries, led by Poland, co-legislators agreed to impose tariffs in emergency cases on currently duty-free imports of Ukrainian poultry, eggs, sugar, oats, maize, groats and honey (but not hard limits on wheat).

But Ukrainian farmers have slammed the EU decision, arguing that there is no economic justification for such measures and that such restrictions will limit Ukraine’s financial ability to fight Russia.

"Regretfully, short-sighted political interests prevailed over the sense of solidarity and urgency to act," the Association Ukrainian Agribusiness Club said in a statement.

"Europe’s solidarity with Ukraine must be upheld with deeds, not words alone," they also said.

The duty-free trade policy with beleaguered but non-EU Ukraine was activated in June 2022, to support Kyiv after Russia’s full-scale invasion. An extension also took place in 2023.

But frontline neighbouring states have since raised concerns that their local markets and producers have experienced disruptions due to a surge in cheaper Ukrainian imports, prompting some governments to trigger unilateral measures.

Last year, five EU member states — Poland, Bulgaria, Hungary, Romania, and Slovakia — imposed temporary bans on Ukrainian grain imports.

However, despite the bans being illegal, three — the Polish, Hungarian, and Slovak restrictions — have remained in place since April 2023.

While the commission has not taken any action in response to these violations of EU trade regulations, Kyiv filed a complaint against the three member states at the World Trade Organization (WTO) in September of last year. The case remains on standby.

During the last European Council in March, Ukrainian president Volodymyr Zelensky warned EU leaders against imposing restrictions on Ukraine’s grain, arguing that losses in their revenues would only benefit Russia.

But in recent months the new Polish government of prime minister Donald Tusk has been facing pressure from domestic farmers, who have been demanding curbs on Ukrainian imports and expressing frustration against EU policies.

French role

Under the compromise reached on Monday by EU countries and MEPs during the so-called trilogues, the reference period to determine if imports exceed a certain threshold has been extended to include the second half of 2021.

This means that tariffs in emergency cases will be automatically activated if imports of Ukrainian poultry, eggs, sugar, oats, maize, groats and honey exceed the arithmetic mean of quantities from the second half of 2021, 2022 and 2023.

But if one or several member states signal a disruption in their domestic markets, the commission could also take action and, for example, reintroduce tariffs.

Overall it is estimated that new measures agreed this week could cost the Ukrainian economy €330m, according to figures from the commission.

Previously, an agreement had been reached covering only the period 2022-2023. But the French government, also pressurised by its farmers, joined frontline countries pushing to extend the reference period to the second half of 2021 — in line with the EU parliament position.

"Under this new agreement with the council, we have fortified safeguards to protect EU farmers in case of market turbulence sparked by Ukrainian imports," said centre-right Latvian MEP Sandra Kalniete.

Permanent solutions?

New trade measures will enter into force in June and will apply to Ukrainian exports until mid-2025, but the European Commission has pledged to find a more permanent solution with a renewed EU-Ukraine Association Agreement (DCFTA).

The EU executive has also committed to monitoring imports of grain, particularly wheat, and its concentration of such imports in frontline EU countries — being able to trigger safeguards measures if necessary.

The European Parliament is now expected to adopt the proposal in the second plenary session in April. Afterwards, EU members will give it the final green light.