Ukraine hit by EU tariffs, export duties on sugar and eggs raised

EU Reintroduces Duties on Ukrainian Eggs and Oats

The European Commission has recently announced the reintroduction of duties on imports of eggs and oats from Ukraine, a decision that will have significant repercussions on the country’s economy already devastated by the war.
At the beginning of the Russian invasion, these duties had been abolished to support the Ukrainian economy.

New Duty Regime and Safeguard Mechanisms

The new duty regime, in effect since June 6, has extended the duty-free treatment for some products for another year while introducing safeguard mechanisms to protect specific sectors within the European Union.
Member states have reached an agreement to extend the free trade with Ukraine until June 2025, but the outcome reflects a “tougher” position compared to the initial solidarity.

Expanded List of Protected Products

The extension of the special regime now includes more protections on products considered “sensitive” such as poultry, sugar, oats, corn, semolina, and honey.
These products will be subject to tariffs if their flows exceed the average volumes of the last three years.

Long-Term Economic Impact

While the EU continues to show a certain level of support by extending duty-free treatment to other products, the long-term effects on both the Ukrainian economy and that of EU member states remain to be seen.

New Tariffs and Import Thresholds

The new duties will be applied to specific products once certain import thresholds are crossed, calculated based on import averages from July 1, 2021, to December 31, 2023.
These thresholds were requested by the governments of Poland and France, whose farmers had complained about Ukrainian product competition.

Concerns and Considerations

Concerns have been raised regarding the possible shortage of imported Ukrainian sugar to meet the demand in the EU market in the coming years.
The dual approach of supporting the Ukrainian economy while protecting European producers aims to restore balance amid ongoing protests.

European Agricultural Landscape

Protests from European farmers against alleged unfair competition from Ukrainian counterparts have led to a complex scenario involving various EU countries.
The push and pull dynamics within the EU have resulted in a nuanced approach to trade policies to address these concerns.