Ukrainian agrarians have opposed the introduction of a 10% duty on the export of soy and rapeseed, considering this decision to be contrary to the provisions of the Association Agreement with the European Union. According to the position of the All-Ukrainian Agrarian Council, the new law restricts the rights of domestic producers and does not align with European agreements.
This is reported by Finway
Impact of the Duty on Exports and European Markets
According to the legislation, export without the 10% duty is only possible for producers and cooperatives. However, in practice, this provision is not functioning, as the necessary subordinate legislation has not been developed, which effectively makes duty-free export of oilseeds impossible. As a result, after the implementation of the duty, the export of soy and rapeseed from Ukrainian ports has nearly ceased.
Agrarians emphasize that the loss of access to the EU market for rapeseed and soy has been a serious blow not only for the producers themselves but also for economic relations with European partners. Market participants point out that this is a negative signal for importers from EU countries.
Product Delays and Financial Losses
The Ukrainian Grain Association highlighted that the new rules have led to the blockage of about 500 thousand tons of soy and rapeseed in warehouses. This has caused significant financial losses for producers, estimated at $50-60 per ton. Exporters believe that the situation requires immediate resolution to avoid further economic losses for the industry.
The new law on the export of soy and rapeseed, which introduces a 10% duty, contradicts agreements with the EU and restricts the rights of Ukrainian producers, asserts the All-Ukrainian Agrarian Council.