The EU's introduction of autonomous trade preferences for Ukraine in 2022 provided significant support to Ukraine's agricultural sector. Together with the EU's economic and military assistance, this was an important step in the gradual economic recovery and job preservation in the wartime. The share of agricultural products in Ukraine's exports remains significant and any increase in trade barriers will have a negative impact on macroeconomic stability and employment in Ukraine.
The European Commission's proposal of January 31, 2024, to introduce automatic safeguard measures against exports from Ukraine (in particular, poultry, sugar and eggs) - without an appropriate investigation or evidence of damage to European markets, in particular to one or more member states, as part of the extension of autonomous trade preferences - may have negative long-term consequences for both Ukraine and the EU, such as slowing down the integration of the Ukrainian economy into the EU economy. It is important to support domestic production, which today is the only source of covering budget expenditures for military needs to counter the aggressor. According to the FEU, Ukrainian agricultural exports have not caused damage to the EU market, as stated by European farmers and some politicians. On the contrary, Ukraine is a close and predictable partner with a short supply chain to the EU market, which consistently implements best practices and adheres to strict EU requirements in the field of safety and quality of agricultural products. This significantly reduces the vulnerability of the EU market to global challenges and ensures food security in the world.
As part of the extension of the EU's autonomous trade preferences for Ukraine for 2024-2025 and the definition of mechanisms for regulating Ukrainian exports to the EU of certain categories of agricultural products, the FEU calls for taking into account a number of objective factors and circumstances that will have a significant impact on the decision-making process on the use of export restriction mechanisms by the European Commission, namely:
- validity of the assessment of potential damage to Ukrainian exports to the EU single market. The application of safeguard measures should be preceded by an investigation procedure that would allow all interested parties to fully exercise their right to defense;
- compliance with the EU's interests in introducing protective measures at each specific stage of the autonomous trade preferences;
- assessment of the damage to mutual economic integration and trade that could be caused by the reintroduction of tariff quotas in force until 2022 for both the EU and Ukraine.