“Ukraine insists on an agreement with the EU on better conditions than those that were before the war.”, – WRITE: www.unian.ua
Ukraine insists on an agreement with the EU on better conditions than those that were before the war.
Ukraine plans to change export policies after completion of “trade visa waiver” with the EU / photo pixabay.comUkraine plans to change its policy on agricultural exports to adapt to the expected completion of free access to the European Union’s profitable market (hereinafter – the EU). It is a potential reduction in exports of raw materials and simultaneous intensification of internal processing of foodstuffs.
The Minister of Agriculture of Ukraine Vitaliy Koval has informed about it Reuters. According to the agency, last year agricultural goods amounted to about 60% of the total exports of Ukraine in the amount of $ 41.6 billion. At the same time, the European Union purchased about 60% of these goods worth about $ 15 billion.
The EU temporarily abolished duties and quotas for Ukrainian agriculture after Russia in 2022. But this arrangement should end on June 5.
As EU farmers persistently lobby restrictions on cheaper Ukrainian products that are competition, free trade should be replaced by quotas. Their final volume must be agreed by Ukraine and the EU by the end of July.
Last month, high -ranking Ukrainian legislator stated that the termination of preferential trade with the EU could be deprived of Kiev 3.5 billion euros of annual income. Other markets will not be able to fill this hole.
When asked how Kiev will handle this, Minister of Agrarian Policy Vitaliy Koval said in an interview that changes in export policies would necessarily be:
“They will be caused by a cold calculation because we understand that we are suffering if the trade regime changes.”
The blacksmith did not specify what measures could be taken, but said that domestic production was a “issue of national interests” and the government’s strategy.
It is noted that exports of Ukrainian agricultural products are not taxed. But oilseed processors have already suggested that the government limit the export of their products to increase the domestic production of vegetable oil. This can stimulate exports of recycled oils that are more profitable than oilseeds as raw materials.
Koval stated that Ukrainian oilseed processing plants operate only about 65% of capacity. Its ministry “studies all ways of using our Ukrainian processing plants to create additional costs and products of processing”.
Ukraine traditionally exports about half of its soybean crop and most of the rapeseed. According to Koval, Ukraine needs to make more to take advantage of its own raw materials.
“If someone thinks that we can be forced to become a colony that will supply natural resources that will supply raw materials that will not happen to someone,” the Reuters Minister quoted.
Koval added that Ukraine insists on an agreement with the EU on better conditions than those that were before the war.
“The quotas will definitely be, we hope that there will be an expansion of quotas compared to 2021,” he said.
Completion of “trade visa waiver” with the EU – what is known”Trade visa waiver” between Ukraine and the EU has been operating since June 4, 2022. In this way, the European Union tried to support the Ukrainian economy after the start of the Russian invasion, temporarily canceling duties and quotas for export of products from Ukraine.
Polish Prime Minister Donald Tusk stated that the European Union will not continue “trade visa waiver” with Ukraine. The simplified conditions for export of Ukrainian products are completed from June 5, 2025.
It is noted that the quotas are a temporary measure, and the block is working on reviewing the conditions of the free trade area, approved under the Association Agreement between Ukraine and the EU.
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