Ukraine has proposed a new mechanism for exporting agricultural products to the EU

The Ministry of Agrarian Policy has proposed to European partners a new mechanism for exporting Ukrainian agricultural products, according to which deliveries will be made on schedule. This should make exports more predictable. This was announced by Minister of Agrarian Policy and Food Vitaliy Koval in an interview with Forbes.

According to him, EU countries need more predictability. Therefore, to reduce the tension that has arisen in previous years, the Ministry of Agrarian Policy offered the EU an alternative option for exporting Ukrainian agricultural products: to export a certain amount of products per month according to a schedule.

“There is a risk that the regime of autonomous trade preferences will be extended and then canceled. Therefore, my main challenge for this year is to diversify exports,” Koval says.

Last year, the share of agricultural exports to the EU decreased from 61% to 52%. The Ministry plans to gradually reduce this figure to 40%.

The Ministry is diversifying its exports to the EU. Last year, Africa became the newest market, with its share in agricultural exports increasing by 3% to 11%, and turnover reaching $2.6 billion. Exports to the Middle East and Southeast Asia also increased.

As reported, the European Commission does not plan to extend the benefits for Ukrainian exports established after the start of Russia’s full-scale invasion, which include the unilateral abolition of duties on Ukrainian agricultural products and are valid until June 5. However, there is no question of returning to the trade regime that existed before the full-scale war.

As an option, an agreement within the Deep and Comprehensive Free Trade Area (DCFTA) is being considered, which could include quotas for certain types of agricultural products from Ukraine and additional safeguards.

In May 2024, the Council of the European Union approved the extension of the suspension of duties and quotas on imports of Ukrainian goods to the EU for another year, but with additional safeguards to protect European farmers.

Tags: Ukraine, export, EU, restrictions