New rules for the export of Ukrainian agricultural products to the EU have come into force. Denys Marchuk, Deputy Chairman of the Ukrainian Agri Council (UAC), highlighted important aspects of this change and its impact on the Ukrainian agricultural sector during a briefing at Ukrinform.

According to Denys Marchuk, previously about 60% of Ukrainian agricultural exports were directed to the EU markets, which brought the country about USD12 billion annually.

"Negotiations on the extension of duty-free trade were difficult due to the resistance of European farmers, but eventually we managed to achieve a positive result. Free trade opportunities have been extended for another year, but restrictions have been introduced for six categories of goods: corn, chicken, honey, sugar, oats and cereals. One of the new features is the introduction of an emergency export suspension procedure, which will be applied for the first time.

It is not yet clear how this procedure will work. In 2025, it is planned to return to the discussion of quotas and duties,” said the UAC Deputy Chairman.

Denys Marchuk also commented on the protests in Poland that started yesterday under the false pretext of building a road for the sale of Ukrainian grain.

 "We expect that the European Parliament elections will be held on June 6-9, and we hope that the situation on the Polish-Ukrainian border will be improved after them. Currently, most of the Ukrainian agricultural products are exported through the Black Sea, and only a minimal amount is exported through Poland,” explained the Deputy Chairman of the UAC.

Regarding inner problems, the expert noted that winter crops have decreased this year due to a lack of working capital and, accordingly, unpreparedness of producers, and also emphasized the need to support the agricultural sector in the frontline areas.

"More than 12 million hectares have been sown with spring crops. Much of the agricultural land has not yet been demined, which also affects production. In addition, agricultural enterprises lack staff, so it is important to ensure quick postponement employees from military service. Particular attention should be paid to the work in the occupied and frontline territories, where it is necessary to “freeze” loans, as many Ukrainian agricultural enterprises have been robbed by the enemy. The UAC supports the relevant draft law № 11180-1 and hopes that the Verkhovna Rada of Ukraine will adopt it, as many enterprises cannot start new activities due to being in the registers of debtors,” emphasized Denys Marchuk.

Wednesday, 5 June 2024

 

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