EU Commission hits “emergency brake” on Ukraine egg and sugar imports

02 Jul 2024 --- The EU Commission has reintroduced tariff quotas for imports on eggs and sugar into the EU from Ukraine, due to import levels reaching their limit.

The Commission has triggered the latest “emergency brake” as eggs and sugar import averages have reached their quota — 23,188.96 metric tons and 262,652.68 metric tons, respectively. The EU introduced an  automatic safeguard mechanism against imports earlier this year  to protect what it deems as sensitive agricultural products in the country. 

Ukraine, which is currently in accession talks with the EU, has substantial livestock agriculture, with it being the second largest egg producer after France. It also has the fourth largest poultry sector, with agricultural products accounting for 41% of the country’s exports.

Positive impact on Ukraine trade
In a statement on its website, the EU Commission says: ”The revised Autonomous Trade Measures (ATMs), in place since 6 June 2024, includes an emergency brake for seven agricultural products to be automatically triggered if import volumes reach the average yearly imports recorded between 1 July 2021 and 31 December 2023.”

It shares that the ATMs have had a positive effect on Ukraine’s trade to the EU so far. This includes helping to ensure trade flows from Ukraine to the EU have remained “remarkably stable” over the last two years despite the major disruptions caused by the war and against the general trend of a decrease of Ukraine’s trade overall. 

EU imports from Ukraine a Agricultural products account for 41% of the country’s exports.mounted to US$24.4 billion in 2023 compared to pre-war levels of US$25.7 billion in 2021, according to figures shared by the Commission.

“The latest ATMs have introduced an emergency brake for eggs, poultry, sugar, oats, maize, groats and honey, to also be mindful of EU sensitivities,” it adds.

Chronic sugar gap
The move has been criticized by the Committee of European Sugar Users (CIUS), which represents more than 15,000 sugar companies in the industry. 

It argues that duty and quota-free access to sugar from Ukraine was beneficial as it helped plug “the chronic gap” between EU sugar supply and demand, as well as providing a better balance to the EU sugar market.

“This automatic safeguard is economically unjustified for sugar and incoherent with the EU’s promise to support Ukraine and pave the way toward accession,” says Yuriy Sharanov, president of CIUS. “We hope that free trade with Ukraine can be restored as soon as possible.”

The committee adds that as well as imports of sugar from Ukraine being effectively suspended until the end of this year, only 109,438 metric tons will be allowed between January and June next year. It says this is a drastic cut, as over 400,000 metric tons were imported during 2022-2023.

The association estimates that more than 500,000 metric tons of permanent duty-free access to extra sugar is needed annually to offset insufficient EU sugar production.

By Sade Laja