EU restrictions prompt Ukrainian farmers to seek markets beyond bloc
Starting from June, the EU will be able to impose restrictions on imports of certain types of Ukrainian agricultural products if their supplies exceed the quota. Therefore, Ukrainian exporters need to look for alternative markets, as the quotas are smaller than Ukraine's current supply capacity.
Source: Taras Vysotskyi, First Deputy Minister of the Ministry of Agrarian Policy and Food of Ukraine, on the air of the national joint 24/7 newscast, Interfax-Ukraine reports
Quote: "In fact, the restrictions will take effect from 5 June this year. If at a certain point, for example, on 1 July or 20 August, the volume of quotas for which restrictions were proposed is reached, then the European Union has the right to decide within 14 days to restrict the import of these products until the end of the calendar year," the official explained.
He noted that the proposed mechanism is completely new in the history of trade relations – this is "not a typical quota or restriction". Therefore, time will tell whether it will be applied in practice or not. However, such an option has been developed and can be used in the EU.
Answering the question of how this threatens Ukrainian exporters, Vysotskyi explained that they need to look for alternative markets, as the size of the EU quotas is significantly smaller than the physical capacity to grow crops in Ukraine.
Vysotsky stressed that there is still time until summer for exporters to diversify their markets.
Previously:
- The European Parliament's International Trade Committee approved the extension of the current preferential trade treatment regime to support Ukraine and Moldova.
- Ukraine may lose about a billion euros over the course of the year under the new trade regime. All because of the "emergency brake" mechanism.
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