The European Council extends the free trade agreement with Ukraine to protect the agri-food sector of a country devastated by war, as reported by the European institution cited by FoodIngredientFirst.

A controversial approval

The European Council (EC) has approved the suspension of import duties and export quotas for Ukrainian and Moldovan exports to the EU for another year, as part of the ongoing support provided to Ukraine after over two years of war with Russia.

Following yesterday's discussions in Brussels, the EC has decided that the EU's autonomous trade measures for Ukraine will apply from June 6, 2024, until June 5, 2025. These refer to the continued suspension of all customs duties and remaining quotas under Title IV of the EU-Ukraine Association Agreement (DCFTA).

This is a renewal of an initial agreement in 2022. The trade measures will strengthen EU farmers' protection for "certain sensitive agricultural products," says the EC.

The extension also includes two new safeguard mechanisms to protect the EU market and allow for quick remedial action in case of significant disruptions to the EU market or one or more member states.

These mechanisms allow for periodic monitoring and, essentially, the imposition of quotas if the exports of key agricultural and food products exceed those of the last three years.

An "emergency brake" will be automatically triggered if import volumes of eggs, poultry, sugar, oats, corn, cereals, and honey reach the annual average value of imports recorded between July 1, 2021, and December 31, 2023.

No restrictions are planned for cereals such as wheat and barley.

Tensions and protests

Previously, Europe's decision to liberalize trade policies for Ukraine has led to tensions in other EU countries such as Poland, Hungary, and Romania, where farmers and agricultural organizations have organized demonstrations against EU policies perceived as undermining local agriculture and jeopardizing future livelihoods. The trade liberalization measures for Ukraine remain a continuing source of tension.

The European agri-food and agricultural group Copa Cogeca says that the trade measures do not address the concerns of EU producers and warn that imported volumes are likely to remain significant and continue to affect the markets. Additionally, no restrictions are planned for cereals such as wheat and barley.

"Solidarity with Ukrainian farmers remains essential, and EU farmers and producers stand ready to do their part. It cannot be forgotten that, with these autonomous trade measures (ATMs), export volumes to Europe remain substantial and will not be sustainable in the long term, especially with production and cultural standards in Ukraine remaining lower than in the EU.

For the survival of sensitive sectors of the EU, it will be essential for European institutions to ensure that the revised Association Agreement provides the necessary guarantees to maintain the economic viability of EU producers and manufacturers," said in a statement.