EU will significantly reduce imports of Ukrainian wheat and sugar

UkrAgroConsult

The European Union has introduced new quotas for agricultural imports from Ukraine. The largest reduction concerns wheat — up to 1.3 million tons per year. This is significantly less than the 4–6 million tons that were supplied to the EU without restrictions in the previous three seasons. The changes are intended to ease tensions among EU farmers who are suffering from competition with Ukrainian products, Reuters reports.

The quotas also affect other important goods. In particular, the limit on sugar imports has been reduced to 100,000 tons, compared to over 500,000 tons in MY 2023/24, and poultry meat to 120,000 tons from the previous 90,000 tons. On the other hand, the quota for barley has increased from 350,000 to 450,000 tons, which corresponds to last year’s imports from Ukraine and may support the stability of supplies of this crop to the European market. A quota of 1 million tons has been set for corn, but due to the zero tariff in the EU, it is considered formal and will not restrict supplies.

Ukrainian agricultural associations have criticized the new quotas, calling them a “step backward” that harms domestic exports. According to them, Ukrainian farmers are already facing high logistics costs, war, and reduced support from Western partners. Reduced access to the EU market will only exacerbate these challenges.

Traders note that the main effect of the changes is a redistribution of trade within the European Union. “This will affect importers, who will now buy grain more often from France or Germany instead of Ukraine,” said one French trader. No significant changes are expected on a global scale: Ukraine will continue to supply large volumes of grain to North Africa and Asia, taking advantage of its access to the Black Sea.

The updated agreement between Ukraine and the EU covers 40 product groups and still needs to be approved by a qualified majority of member states. The document also stipulates that individual EU states may impose additional restrictions if the market is destabilized as a result of imports within the quotas. Next review towards further liberalization in 2028

Tags: Ukraine, EU, duties