Bulgaria insists on limiting imports of Ukrainian grain to the EU

Bulgaria insists on imposing tariffs and quotas on imports of Ukrainian grain to the European Union and explains its demand by the “significant” suffering of local farmers after the lifting of restrictions on trade in Ukrainian products.

“The increase in exports from Ukraine is a serious concern for producers, as they are unable to compete with the prices of Ukrainian products,” the Bulgarian Ministry of Agriculture said in a response to a request from Euractiv.

The ministry clarified that Bulgaria has significant capacities for the production of refined and unrefined sunflower oil, as well as biodiesel. Bulgarian producers in these sectors are among the largest in the EU. At the same time, Bulgaria does not produce enough sunflower seeds for its capacity and is heavily dependent on imports from Ukraine.

The imposition of duties on Ukrainian sunflower and rapeseed seeds will make it more difficult for Bulgarian products to be sold on the world market. When the ban on imports of Ukrainian grain came into effect last year, some production facilities were closed, the Bulgarian Ministry of Agriculture explained.

Speaking about the quality of Ukrainian grain, the ministry said that in 2023, Bulgarian health authorities checked it and stated that it was completely safe. In addition, sunflower seeds from Ukraine have a higher average oil content than Bulgarian seeds.

To satisfy Bulgarian grain and oil producers and livestock farmers who rely on cheap imports, the Bulgarian government proposed to the European Commission to set “import quotas” for duty-free imports. If they are exceeded, the Bulgarian Ministry of Agriculture insists on paying duties on Ukrainian products.

Bulgaria is convinced that the maximum volumes of Ukrainian agricultural products should “correspond to market logic and processing capacities, as well as provide greater clarity and confidence for both producers and processors.”

At the same time, the Ministry of Agriculture of Bulgaria warns that the current situation may lead to a decline in domestic production, which “may affect the country’s food security in the long term.”

The Bulgarian government is convinced that the European Commission should take measures to protect the markets of Ukraine’s neighboring EU member states to allow them to utilize their export potential. One such measure could be the introduction of tariff quotas for the most sensitive agricultural products.

“For products for which re-introduction of tariff quotas is not possible, another solution to the problem of increasing imports from Ukraine should be found,” the Bulgarian agricultural ministry summarized.

As previously reported, the duty-free trade regime between Ukraine and the EU, introduced in 2022 (and valid until June 2024), in the context of the reorientation of a significant part of Ukrainian agricultural exports to Europe, has led to the deposition of cheap food from Ukraine in neighboring countries: Hungary, Slovakia, Poland, Bulgaria, and Romania.

This caused protests by local farmers.

Under pressure from these countries, the European Commission was forced to take special measures in May 2023, banning imports of Ukrainian food to these countries. After the ban was lifted in mid-September, Hungary, Slovakia, and Poland, against the will of the European Commission, introduced bans at the national level.

Tags: Bulgaria, restrictions, Ukraine