Since October 29, an updated trade agreement between the European Union and Ukraine has come into force. The Deputy Chairman of the Ukrainian Agri Council (UAC) — Denys Marchuk — explained to KapuchinoTV and RFI what exactly has changed, what challenges national producers are facing, and which countries are dissatisfied with the increased Ukrainian presence on the European market.

He noted that the conditions for Ukrainian producers were better than they were before the large-scale war began, but worse than when there was the possibility to “export almost without any restrictions — no duties or quotas.” But he emphasized that the agreement gave perspectives and structure.

“We have received significantly better terms even on sensitive goods like chicken, eggs, sugar, (…) the grain group has partially increased. In 2028 we will review the agreement again, and we will talk not about reduction, but about development and increasing the Ukrainian presence on the European market,” Marchuk pointed out.

As the UAC Deputy Chairman explained, under such conditions dissatisfied parties emerge — mostly “competitors who in the European Union also specialize in agricultural production.”

“In those three years when the ATM has worked, they saw that Ukraine even under conditions of war was able to fulfil its export obligations quite well and quickly. So of course we will hear certain statements concerning protecting one’s national producer, which we hear from Hungary, Slovakia, Poland, Romania, Bulgaria,” Marchuk stated.

Agriculture ministers of Hungary, Romania and Slovakia at the meeting of the Council of the European Union on Agriculture on 27 October in Luxembourg demanded discussion of protective measures in EU trade agreements, in particular with Ukraine.

“Ukraine has demonstrated its efficiency under war conditions. We work without any subsidies or grants for the national producers, and accordingly they (EU countries — ed.) fear such competition. Therefore we need not only direct communication at the level of the European Union in Brussels, but also continue cooperation at the level of individual countries such as Romania, Poland, Bulgaria to calm these waves of dissatisfaction,” said the expert.

Marchuk is convinced that Kyiv should not escalate relations with neighbouring states by insisting on increased production. It is better to “show that we are not competitors, but under certain conditions can even be real partners thanks to our joint export potential of products, for example to African countries where population numbers are growing very quickly.”

Political context also plays a role. Marchuk explains that the matter sometimes becomes the subject of speculation in EU countries where centre-right and populist parties are in power. Farmers are a substantial electoral group, so politicians strive to secure preferences for them from the EU. For example, the issue took on a political character in Poland, where there is nominally a conflict between government and president wings.

“The Common Agricultural Policy of the European Union is changing. Each year there will be fewer funds that were previously allocated as subsidies per hectare of land. So one must already think not about subsidies but about the efficiency of one’s farming,” Marchuk emphasized.

Separately, the UAC Deputy Chairman drawed attention to the challenges Ukrainian agricultural producers face when exporting products under the conditions of Euro-integration. In his view, the conditions they will have to meet will be “quite burdensome”, so a “certain transitional phase of Euro-integration of the Ukrainian agricultural sector” is needed.

“Those conditions, for example related to green policy, use of fertilizers or seeds, those connected with land turnover — all this are additional burdens which will fall on the shoulders of Ukrainian producers. Without any subsidies or support they will become effectively non-competitive within the European Union,” he notes. “For example, just the conditions connected to use of chemical agents — as we calculated in the Association — these are additional burdens for business in the order of two billion euros. That’s a large loss.”

Marchuk proposes approaching the issue in a differentiated way. For instance, those who intend to export to the European Union and aim to obtain European subsidies must comply with all the regulations. And for those who see potential in other markets, a “transitional phase within 15-20 years” should be envisaged for gradually meeting European requirements.

If one acts hastily and inconsistently, the expert suggests, this may negatively affect the competitiveness of Ukrainian producers who are successful now.

“Due to such a sharp and inconsistent transition we could lose the attractive medium-business sector in Ukraine which has built itself up. Therefore it is very important that for Ukrainian producers Euro-integration should have a gradual effect,” he concluded.