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EU struggles to extend tariff-free exports for Ukraine

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BM.GE
27.04.23 17:27
357
Facing resistance from Eastern member states, the EU is struggling to extend Ukrainian agricultural products’ tariff-free access to the European market.

Despite an approaching deadline, EU ambassadors have yet to agree on another year of exemption under import duties for Ukrainian agricultural goods because Bulgaria, Hungary, Poland, Romania, and Slovakia want to end the preference.

Poland, Hungary, Slovakia, and Bulgaria unilaterally banned the entry of grain and other food shipments from Ukraine two weeks ago, arguing that they must protect their farmers and products from cheap competition.

Although the rest of the EU countries could overrule their opposition according to EU decision-making procedures, the Swedish Presidency of the Council of the EU and the European Commission are still seeking a compromise.

The EU Commission has already promised €100 million (about $110 million) in support for the farmers and an exemption for the governments to prohibit the sale of Ukrainian agricultural products if they lift the embargo allowing Ukrainian goods to other EU states.

In hopes of solving the stalemate, negotiations continue and EU ambassadors are expected to cast their votes on the extension on Friday.

Last May the European Union lifted all import duties on Ukrainian goods, including industrial and agricultural products, for one year.

The preferences aimed to address global food insecurity and support the country's economy.

They also set up so-called “solidarity lanes” to ensure that Ukraine can export grain as the country is one of the world’s largest exporters of corn, wheat, and sunflower oil, and an important provider of humanitarian food supplies.

Under EU law, EU member states are not free to individually decide on their trade and market policies because these are exclusive competencies of the EU, AA reports.