Suspending import duties: EU extends special trade measure for Ukraine but farmers still protest

21 Mar 2024 --- The European Parliament and Council reached a provisional agreement to extend trade liberalization measures for Ukraine while adding sensitive agriculture products with import “safeguards” to curb the influx of low-cost imports and maintain market stability.

The agreement, set to last until June 5, 2025, extends the temporary suspension of import duties and quotas on Ukrainian agricultural exports to the EU amid concerns from EU farmers regarding potential market disruptions caused by the influx of Ukrainian agricultural products.

“This agreement reinforces the EU’s continued commitment to stand by Ukraine,” says rapporteur Sandra Kalniete.

“Russia’s targeting of Ukraine and its food production also impacts EU farmers. The Parliament heard their concerns and bolstered safeguard measures that would alleviate the pressure on EU farmers should they be overwhelmed by a sudden surge in Ukrainian imports.”

This approach has not been without its controversies. In a joint statement, six organizations representing EU farmers and growers say: “The decision makers negotiating in trilogue on the renewal of the Ukrainian autonomous trade measures (ATMs) have proceeded by ignoring the key concerns of our producers.”

Policy changes
This year, farmers and agricultural communities across multiple EU states, including Poland, France, Germany, Spain and Belgium, have been staging demonstrations against EU policies perceived to undermine local agriculture and jeopardize their future livelihoods.

In response to their concerns, the new agreement includes a provision for the European Commission to take action if disruptions occur in the EU market due to Ukrainian imports. An emergency brake has been introduced for sensitive agricultural products, namely poultry, eggs and sugar. MEPs secured the expansion of this list to include oats, maize, groats and honey.

The European Commission also commits to take action if there is a surge in Ukrainian wheat imports, reflecting the current state where EU cereal prices are at a four-year low.

Furthermore, the emergency brake mechanism now enables the re-imposition of tariffs should imports of these products exceed the average volumes of 2022 and 2023. Parliament negotiators ensured that the Commission would take action within 14 days instead of 21 days upon reaching trigger levels for the automatic safeguards.

Officials say that the EU is also planning to impose tariffs on Russian and Belarusian grain to reduce imports.

Farmers’ dissatisfaction
Yet, European agri-food and farming organizations across multiple sectors voiced their dissatisfaction, indicating that “ by keeping a reference period that will expose EU productions to significant imports and by rejecting the inclusion of wheat,” the modifications proposed by the Parliament that would have offered sufficient protection to producers and manufacturers have been denied.

The effects of geopolitical crises are impacting the livelihoods of farmers. “While the inclusion of oats, groats and honey and the shortening of the activation period can be welcomed, without the change of the reference period in question from 2022/23 to 2021/22/23, the burden on the EU farming sector will persist and so will their discontent.”

“The inclusion of maize is pure window-dressing, as given the lack of previous tariff rate quotas in the association agreement, even if the 2022/23 average would be reached, it would have no effect. Similarly, the arbitrary inclusion of oats and groats, which represent much smaller volumes than wheat, will not be effective,” says the joint statement.

Last year, some EU countries, namely Poland, Hungary and Slovakia, implemented unilateral bans on many products in violation of EU trade rules.

Copa-Cogeca, the EU’s “united voice of farmers,” shares on their official social media account: “Despite the inclusion of oats, maize, groats and honey and shortening of the activation period, the asks of EU producers were not taken on board.”

“Without the change in the reference year and no direct inclusion of wheat, this proposal fails to address producers’ concerns and hence remains unacceptable.”

Last month, the group claimed that due to ATMs, agricultural commodities in several EU countries are failing to reach their intended markets and instead compete within the European Community market. 

By Sichong Wang