BRUSSELS – In an effort to support Ukraine’s economy amidst the conflict with Russia, the European Union has agreed to extend the suspension of import duties and quotas on Ukrainian goods for an additional year. The decision was confirmed by EU ambassadors during a meeting on Friday, under the stewardship of Sweden, the current holder of the EU’s rotating presidency. The initial tariff suspension was enacted in June 2022 for a duration of 12 months.
This extension comes after some EU member states, such as Poland and Hungary, imposed bans on certain grain imports from Ukraine earlier in the month, responding to concerns raised by domestic farming communities over the duty-free imports. Prior to the invasion by Russia in February 2022, Ukraine had already been enjoying preferential trade terms with the EU under the EU-Ukraine free trade agreement that came into effect in 2016. This agreement had removed most EU tariffs on Ukrainian products, albeit with certain transitional measures in place. However, for particularly sensitive agricultural products, including meats, dairy, sugar, and some grains, the EU had maintained tariffs and quotas to protect its own producers.
In light of these developments, the European Commission has proposed compensatory measures for farmers in five EU countries that share borders with Ukraine. Additionally, it has suggested allowing these nations to restrict the domestic sale of particular Ukrainian grains while permitting their transit through the territories for export to other destinations. These measures aim to alleviate the pressures on EU farmers due to increased transit of Ukrainian grain, which has been rerouted through overland corridors as a result of the disruption to Ukraine’s Black Sea ports. The proposal to continue the suspension of import duties received strong support from the European Parliament’s trade committee, setting the stage for a forthcoming vote in the full parliamentary assembly scheduled for May.
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