EU weighs reintroduction of trade quotas on Ukraine amid prolonged war
The European Union is considering reinstating quotas on imports of several agricultural goods from Ukraine, a move that could end the trade relief provided to the war-affected nation.
The European Commission plans to reintroduce limits on purchases of Ukrainian wheat, corn, barley, poultry, eggs and other products from June through December, according to documents obtained by Bloomberg News. News.Az reports citing foreign media.
Restrictions on trade were temporarily lifted in 2022 to support Ukraine after Russia’s full-scale invasion earlier that year, as agricultural exports are crucial to the country’s war-stricken economy. The suspension of the previously established tariff-rate quotas applies until 5 June, according to a draft regulation obtained by Bloomberg, and the reintroduced quotas should set in from 6 June.
Eased trade with the EU helped Ukrainian farmers to sustain their businesses amid tremendous challenges, including the temporary loss of their main export route through the Black Sea and production difficulties caused by land mines and conscription. However, a surge in exports of relatively cheap Ukrainian goods to the EU market faced pushback from local farmers in countries such as Poland, Hungary and Slovakia.
In turn, this triggered a political standoff over protectionist measures between neighboring countries - some of which, like Poland, had previously been strong allies.
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