Ukraine has to introduce quotas on dairy imports to save the dairy industry from collapse. The UAC Deputy Chairman Mykhailo Sokolov, commenting on the situation in the industry, emphasized this statement.

"In 2020, for the first time in its history, Ukraine became a net importer of dairy products - imports exceeded the export of dairy products twice. The reason is a hidden subsidy for the export of dairy products to Ukraine by a number of European countries. This situation leads to a rapid reduction of livestock in Ukraine and the processing plants closure. This is despite the fact that back in 2018, Ukraine was a leader in the EU in exports of casein, butter, skimmed powder milk (SPM). Therefore, it is necessary to react to the situation immediately and radically," the UAC Deputy Chairman emphasizes.

The UAC insists on the need for the Ministry of Development of Trade and Agriculture to consider as soon as possible the application of milk processors to conduct a special protective investigation and the introduction of quotas on imports of dairy products to Ukraine for the period of its implementation. Examples of recent similar investigations suggest that in the case of a fair and impartial consideration of the issue, only such a decision can be made, Mykhailo Sokolov said.

For example, in the case of the fertilizer market, the Ministry of Economy recommended the introduction of quotas in a situation where there was only a temporary decline in domestic production and growth in imports of mineral fertilizers in the period from 2016 to the first half of 2019, which amounted to 5%. Then began a sharp increase in production, which amounted to tens or even hundreds of percents and far outpaced the decline.

In addition, prior to the investigation, a list of protective measures was imposed during the period, ranging from customs duties to a total ban on imports of fertilizers produced in the Russian Federation, which led to a further increase in domestic production. Also, the domestic market of mineral fertilizers is monopolized, and their prices significantly exceed the prices of the international market.

"In the case of the situation on the dairy market, we have the exact opposite situation. In particular, the sharp and prolonged growth of dairy imports, the absence of any protective measures and monopolies and domestic market prices at the level of world ones. In other words, there is no reason to speak about the inexpediency of introducing protective measures or their inconsistency with national interests. However, the reasons for this decision are obvious and indisputable. Due to the difference in the situation on the markets of dairy products and fertilizers, the UAC believes that the Interdepartmental Commission on International Trade should approve the introduction of quotas or other protective measures on imports of dairy products as measures, that serve the national interest of Ukraine and opposes restrictions on mineral fertilizers imports,” Mykhailo Sokolov noted.