Ukraine plans changes in agricultural exports due to the termination of free trade with the EU

Adaptation will take place through changes in export policy with a simultaneous increase in domestic food processing. UNN reports with reference to Reuters.

Details

Ukraine is preparing to return to the regime of the Association Agreement with the EU, ratified in 2017. From June 6, imports of Ukrainian agricultural products into the European Union will no longer be regulated by the "Autonomous Trade Measures" (ATM) introduced by Brussels in 2022 to support Kyiv's efforts to resist Moscow's aggression.

In anticipation of the end of free access to the profitable EU market, Ukraine plans to change its policy on agricultural exports. The Minister of Agriculture of Ukraine, Vitaliy Koval, told Reuters that the plans include "potentially reducing the export of raw materials, while increasing domestic food processing."

There will definitely be changes in export policy, and they will be determined by cold calculation, because we understand that we will suffer losses if the trade regime (with the EU) changes

According to the publication, oilseed processors have already proposed to the Ukrainian government to limit the export of oilseeds in order to increase domestic vegetable oil production.

This may increase the export of processed oils, which are more profitable than oilseeds as raw materials.

Koval said that Ukrainian oilseed processing plants are operating at only about 65% capacity. However, the Ministry of Agrarian Policy and Food of Ukraine is "studying all ways to use Ukrainian processing plants to create added value and processed products."

Ukraine needs to do more to take advantage of its own raw materials, the head of the agricultural department noted.

Reference

The EU temporarily abolished tariffs and quotas on Ukrainian agriculture after Russia's full-scale invasion in 2022, but this agreement is due to end on June 5. EU farmers are insistently lobbying for restrictions on cheap Ukrainian competition. However, the free trade regime will be replaced by quotas - their final volume is planned to be agreed by the end of July.

A high-ranking Ukrainian official stated recently:

The termination of preferential trade with the EU may deprive Kyiv of 3.5 billion euros of annual income. Other markets will not be able to fill this "hole".

Addition

Vitaliy Koval promises that Ukraine will insist on an agreement with the EU on better terms than before the full-scale war.

There will definitely be quotas, we hope that there will be an expansion of quotas compared to 2021

Let us remind you

The state order for training specialists with higher education for the agricultural sector will increase by more than 10% in 2025.

The value of Ukrainian agricultural exports increased by 37.4% and reached $432.7 per ton. The largest importers were Turkey, the Netherlands, Poland, Italy and Egypt.