EU deal on stricter customs rules for Ukrainian agricultural goods

Negotiators from the European Parliament and the EU member states have agreed on stricter customs requirements for certain foodstuffs from Ukraine.

Specifically, this concerns "poultry, eggs, sugar, oats, groats, maize, and honey," the European Parliament announced on Monday evening. Goods affected by the rules may then only be imported into the EU duty-free up to a certain quantity. Once this quantity has been reached, customs duties will become due again.

The agreement still has to be officially approved by the European Parliament and the EU member states.

The regulations are to apply from June 6 for a period of one year. The extent to which the tariffs will affect the Ukrainian economy also depends on whether the country, which is under attack from Russia, can find other customers for its goods.

Negotiators from the member states and the European Parliament had actually already agreed on new guidelines around three weeks ago.

The first compromise reached between the parliament and EU member states stipulated that the quantities from which levies would be required would be based on the average of imports in 2022 and 2023. However, this did not go far enough for some.

For example, farmers' representatives argued that the entire year 2021 should also be included in the calculation. This would reduce the free quotas for Ukrainian products. The compromise that has now been reached provides for the second half of 2021 to be included in the calculation.

The background to the debate is that the EU exempted Ukrainian goods from customs duties shortly after the start of the full-scale Russian invasion of its neighbouring country. This was intended to strengthen the country's economy.

The current customs relief for Ukraine will expire in the summer. If no new regulation is approved by then, the measure will expire without replacement.

Support in the form of tariff exemptions is a thorn in the side of many farmers, especially in the east of the European Union. They see themselves exposed to disproportionate competition from cheap agricultural imports from Ukraine.

Hungary argued in favour of Ukrainian wheat only being allowed to enter the EU duty-free up to a certain amount in future. There were also voices from France calling for stricter customs rules.

If, for example, wheat prices in the EU were to collapse due to Ukrainian imports, the European Commission could take action. On the basis of the planned rules, the commission "can take swift action and impose any measures it deems necessary," according to the parliament.

Ukraine is an important global producer of wheat, and people in poorer countries in particular are dependent on cheap grain from the Eastern European state.

Due to the Russian invasion of the country neighbouring the EU, at times no wheat could be brought out of the country by sea, which is important for trade. Wheat prices have risen significantly in the meantime.