EU set to reduce imports of key food commodities from Ukraine amid trade scheme changes
In a significant move, the European Union (EU) is poised to further restrict imports of crucial food commodities from Ukraine. This decision follows the recent implementation of a controversial preferential trade scheme, which has been in effect for less than two weeks.
The European Commission has announced that it will impose restrictions on egg imports from Ukraine within the next two weeks, after a noticeable surge in these imports. This follows the Commission’s decision to limit oat imports from Ukraine until June 5, 2025, to protect the EU’s agricultural sector.
Sugar imports from Ukraine are also under close observation and are expected to face similar restrictions soon. Trade experts have flagged sugar as a likely candidate for controls, noting that current import figures already exceed the emergency brake threshold set by the EU.
The new trade scheme, which came into effect on June 6, includes an automatic safeguard mechanism aimed at protecting specific sensitive domestic sectors. These sectors include eggs, poultry, sugar, oats, maize, hulled grains, and honey. The mechanism allows the European Commission to reintroduce tariff-rate quotas if imports of these commodities surpass the average quantities imported between July 1, 2021, and December 31, 2023.
The record of Ukraine food exports
Ukraine has recently set an export record with 108,000 tonnes of sugar exported in May. A significant portion of this, approximately 65%, is destined for the EU market. This surge in sugar exports comes as Ukrainian grain producers increasingly turn to sugar beet as a viable diversification option.
The EU’s association representing European sugar users (CIUS) has expressed concern about the potential impact of these import restrictions. “We fear that in the upcoming years, the sugar volumes will not be enough to meet the demand of the EU market with this,” a CIUS spokesperson stated.
The European Commission continues to monitor the import levels of these key commodities. Should the trigger levels be reached, the Commission is prepared to reintroduce tariffs within a maximum of 14 days to safeguard the EU’s economic interests.
This development underscores the EU’s commitment to protecting its domestic markets while balancing the economic relationships with neighboring countries like Ukraine. As the situation evolves, further adjustments to the trade scheme may be anticipated to ensure the stability and competitiveness of the EU’s agricultural sector.