Ukraine may lose millions due to new EU restrictions on agricultural imports - media
Kyiv • UNN
Ukraine will lose millions in potential profits due to new EU restrictions on duty-free imports of agricultural products from Ukraine, which take into account the reduced imports from the second half of 2021.
According to the new draft of duty-free trade between Ukraine and the EU, which provides for new restrictions, Kyiv will lose millions of euros in potential profits. This is reported by "Radio Liberty" with reference to its own sources in diplomatic circles of the European Union, UNN reports.
Details
It is noted that the Belgian presidency of the EU Council has updated the draft agreement on the extension of duty-free trade with Ukraine, taking into account new restrictions on agricultural imports. The updated draft has partially taken into account the requirements of Poland and France.
According to the document, the base period that will be taken into account when determining the volume of supplies of Ukrainian agricultural products will cover not only 2022 and 2023 but also the second half of 2021 , when the volume of Ukrainian imports was lower.
The publication emphasized that Ukraine opposed this proposal.
The European Commission estimates that Ukraine will lose 86 million euros if the second half of 2021 is also used as the basis for calculations, according to a closed meeting of EU ambassadors.
In general, the restrictions, which will be based on import estimates for the first half of 2021, as well as for 2022 and 2023, are estimated at 331 million euros in losses for the Ukrainian budget.
Addendum
Poland and France supported the updated version of the agreement, with the support of a number of EU countries, including Italy, Hungary, and Austria.
The amendments are opposed by Germany, the Netherlands, Finland, the Baltic States, and Luxembourg.
It is noted that the previous draft agreement agreed with the European Parliament stipulated that quotas for the next period, which will begin in June this year, will be calculated based on the volume of Ukrainian agricultural imports for 2022-2023, when it already enjoyed benefits - no duties and quotas.
Recall
Ukraine's Minister of Agrarian Policy warns that attempts by France and Poland to restrict imports of Ukrainian agricultural products could prolong the war, reducing Ukraine's revenues.
