The European Union (EU) will reinstate tariffs on Ukrainian sugar and egg imports starting Friday, using an “emergency brake” measure aimed at addressing farmer protests across the bloc earlier this year.
This decision comes just two days after the EU began membership talks with Kyiv, which is currently engaged in a war against Russian aggression.
Last week, the EU reintroduced tariffs of €89 per tonne on Ukrainian oats, which will remain in place until June 2025. Similar tariffs on eggs and sugar are expected to be announced on Friday, according to sources familiar with the situation.
The reinstatement of these tariffs highlights the challenges Kyiv will face in its EU accession negotiations.
As a major agricultural producer, Ukraine can produce food more cheaply than EU member states and stands to become the primary recipient of agricultural subsidies, a role currently held by France.
In June 2022, Brussels agreed to eliminate all tariffs and quotas on Ukrainian food imports to support Kyiv’s revenues and aid food supplies to developing countries, following Vladimir Putin’s invasion.
However, this led to complaints from farmers in Poland, Hungary, Slovakia, and other neighboring countries, who argued that a flood of Ukrainian imports was undercutting their market.
These countries unilaterally imposed embargoes on many products, only allowing them for onward transit, which violated EU law.
Earlier this year, EU member states extended the free-trade regime with Ukraine until 2025 but added conditions in response to farmers’ protests.
The EU is set to reintroduce tariffs on Ukrainian poultry, eggs, sugar, oats, maize, honey, and groats if imports exceed the average quantities from 2022 and 2023.
Oats imports have already surpassed this level, with over 6,440 tonnes imported since January 1.
Eggs and sugar have also reached the threshold, according to sources. The new tariffs will be €419 per tonne of white sugar, €339 per tonne of raw sugar, and an additional 30 cents per kg for eggs.
Ukraine’s trade representative, Taras Kachka, stated that while the tariffs align with the current agreement, the Ukrainian government is in talks with Brussels to improve the terms.
“The aim is to remove all bilateral obstacles that are not in line with the agreement,” he said.
An EU diplomat commented that while governments express support for Ukraine’s EU membership, the agricultural negotiations will be challenging.
Dmitry Grozoubinski, author and director of the consultancy ExplainTrade, noted that the tariffs are bad news for Ukraine’s EU membership prospects.
“Ukraine is a formidable agricultural player, even while fighting a war. It lacks subsidies, suffers from chronic under-investment and corruption, and has complicated land ownership.
Imagine its potential after winning the war and receiving investment. If the accession process involves both giving and taking, it’s not promising news.”
