EU agree to reinstate imports quotas from Ukraine

(MENAFN) EU member states have agreed to reinstate import quotas on Ukrainian agricultural goods, according to European Commission spokesperson Balazs Ujvari, as reported by Euroactiv. The current duty-free trade arrangement is set to end on June 5.

Following the escalation of the conflict in Ukraine in February 2022, the EU temporarily removed tariffs and quotas on Ukrainian farm products. This policy, known as Autonomous Trade Measures (ATMs), aimed to help Ukrainian grain and other agricultural exports reach international markets. However, the influx of low-cost Ukrainian produce caused significant unrest among farmers in Eastern European countries, especially Poland.

The recent decision, approved by most EU countries during a meeting on Thursday morning, introduces “transitional measures” to gradually phase out the ATMs and reinstate certain trade restrictions.

Over the past year, some limits have already been brought back on products like oats, sugar, and eggs. These selective reinstatements came after sustained protests from farmers in Poland, Hungary, Slovakia, and other neighboring nations, who argued that they couldn’t compete with tariff-free imports.

Earlier reports from Politico, citing a draft proposal, indicated the EU might replace the ATMs with new limits under Ukraine’s existing Deep and Comprehensive Free Trade Area (DCFTA) agreement with the bloc, rather than continuing the ATMs annually.

Dmitry Natalukha, chair of the Ukrainian Parliament’s economic affairs committee, told Euractiv that ending the ATMs could cost Ukraine over €3 billion ($3.4 billion), roughly 70% of the country’s anticipated economic growth for this year.

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