EU Agriculture Ministers Call for Protection Mechanisms in Wake of Trade Agreement with Ukraine

Ministers of agriculture from Bulgaria, Hungary, Poland, Slovakia, and Romania signed a joint declaration in Budapest, calling for a revision of protection mechanisms for European producers in the wake of the amended trade agreement between the European Union and Ukraine. The ministers expressed concerns over increased quotas for products such as honey, eggs, and sugar, as well as the liberalization of some dairy markets. They urged the European Commission to implement automatic regional safeguard measures and introduce a minimum import price threshold to prevent sales below domestic production cost.

Key Takeaways:

• The joint declaration was signed by agriculture ministers from Bulgaria, Hungary, Poland, Slovakia, and Romania in response to the amended trade agreement between the EU and Ukraine.
• The declaration expresses concerns over increased quotas for products such as honey, eggs, and sugar, as well as the liberalization of some dairy markets.
• The ministers urged the European Commission to implement automatic regional safeguard measures and introduce a minimum import price threshold to prevent sales below domestic production cost.
• The protective measures should cover all agricultural products, including those for which EU import duties have already been fully liberalized.
• The five countries invited the Commission to consider establishing a special fund to compensate EU agricultural producers for possible losses in the event of excessive imports from Ukraine.
• The declaration sets out a common position on goods from Ukraine destined for the EU, stating that such products must meet Union standards.
• The ministers expressed their support for Ukraine and its trade with the EU, but opposed any outcomes harming the competitiveness or leading to bankruptcies among agricultural producers in border states.

Statistics:

• The EU will reduce wheat and sugar imports from Ukraine by up to 80% to address farmers' concerns, likely forcing Kyiv to increase exports to Asian and African markets.
• The EU increased the Ukrainian sugar import quota to 100,000 t, up from 20,000 t before the conflict.
• The import quota for poultry meat was increased from 90,000 to 120,000 t.
• The revised EU-Ukraine trade agreement covers 40 products and still requires approval by a qualified majority of member states.
• For Ukrainian barley, the EU quota will rise from 350,000 to 450,000 t, representing only about half the volumes imported in 2022/23 and 2023/24.

Sources:

• Ministry of Agriculture press service of Bulgaria
• BTA (report mentioned in the text)