New challenges for Ukrainian exporters of agricultural products to the EU

At the start of the war, the EU temporarily eliminated import duties and quotas on many Ukrainian agriculture products, including maize (corn), sugar and poultry. Some EU countries had already begun to transition away from this preferential treatment scheme, which in any case was set to lapse altogether on June 5. While Ukraine would have liked to see its broad preferential treatment continue, EU farmers struggling with the influx of lower prices on Ukrainian products opposed it. The EU and Ukraine are currently negotiating a new harmonised trade framework for agricultural products. As it appeared unlikely that the agreement could be finalised by the beginning of June, a revised duty and quota framework reducing the range of Ukrainian agricultural products qualifying for preferential treatment is now set to enter into force on June 6.

Ukraine estimates that the narrowing of the preferential treatment scheme for agricultural products imported to the EU will reduce Ukraine’s export earnings by 3–3.5 billion euros a year. While nearly 60 % of Ukraine’s 24.5 billion euros in goods exports went to the EU last year, the amount was small compared to the value of Ukraine’s imports from the EU last year (42.8 billion euros).