The European Union has decided to restore quotas on the import of certain agricultural products from Ukraine, which is expected to further complicate the situation for an economy already affected by the war. According to Bloomberg, these restrictions, which were lifted at the beginning of Russia’s invasion in 2022 to support local farmers, are being reintroduced by the European Commission.
This is reported by Finway
The updated quotas will take effect on June 6, and their application will be temporary. The Union is working on revising the terms of the free trade area approved under the Association Agreement between Ukraine and the EU. It is noted that no member state opposed this decision; however, Sweden, the Czech Republic, Denmark, Estonia, Finland, Germany, Ireland, and Lithuania chose to abstain.
“Exporting agricultural products is crucial for Ukraine’s economy, and easier trade with the EU has helped Ukrainian farmers overcome enormous difficulties, including the temporary loss of their main export route through the Black Sea and production challenges caused by mines and military conscription.”
However, the sharp increase in exports of relatively cheap Ukrainian goods to the EU market has faced resistance from local farmers in countries such as Poland, Hungary, and Slovakia. This has led to political confrontations among neighboring states, some of which, like Poland, were previously strong allies of Ukraine.
Trade Visa Waiver and Its Consequences
It is worth noting that the “trade visa waiver” between Ukraine and the EU came into effect on June 4, 2022, as a temporary measure aimed at supporting the Ukrainian economy amid the full-scale invasion by Russia. This agreement provided for the elimination of tariffs and quotas on Ukrainian exports to the European Union. The agreement has already been extended twice, most recently until June 5 of this year.
Earlier reports indicated that after the expiration of the “trade visa waiver,” the European Union does not plan to immediately grant Ukraine new trade preferences. However, a review of the terms of the free trade area under the Association Agreement between Ukraine and the EU is expected in the future. In May, Prime Minister Denys Shmyhal stated that the Ukrainian government is actively negotiating with the European Commission to establish a transitional regime for visa-free trade after the current trade preferences expire.