[ad_1]
Member states signed a key agreement on Wednesday extending free trade measures with Ukraine until June 2025.
advertisementBut the outcome of the negotiations shows a hardening of the position compared to the promise to stick together at all costs promised to the war-torn country, where agricultural exports are a vital source of income. There is.
The extension of the special regime will introduce more safeguards for products deemed to be ‘sensitive’, including poultry, eggs, sugar, oats, corn, groats and honey, and will reduce the amount of these products in circulation. If the amount exceeds the historical average amount, it will be subject to tariffs. 3 years.
The agreement makes it easier for member states to apply “remedies” in cases of market disruption, a vague term that opens the door to national-level bans.
In total, it is estimated that the adjustments will cost Kyiv around 330 million euros per year.
The tightening of the rules comes amid farmers’ protests across Europe, with some accusing Ukrainian farmers of unfair competition. Opposition to low-cost imports from Ukraine initially came from neighboring countries in Eastern Europe, namely Poland, Hungary and Slovakia, but gradually spread to France, which shifted the discussion from an expansionary position to a restrictive one. I moved to my position.
Italy and Austria also changed their stance towards Poland, further complicating the calculation. Meanwhile, Germany, the Netherlands, and the Baltic states resisted tightening.
The responsibility for breaking the impasse fell on Belgium, which currently holds the rotating Presidency of the Council. Belgium submitted a new compromise on Wednesday morning, paving the way for approval later in the day.
“The ambassadors agreed to a new compromise that extends the Trade Measures for Ukraine (ATM) and ensures a balanced approach between supporting Ukraine and protecting the EU agricultural market,” the presidential office said. Stated. announced on social media.
It added that the document would be submitted to the European Parliament for a “quick” resolution.
endless debate
Ukraine has historically been one of the world’s leading exporters of goods such as sunflower oil, barley, corn and wheat. Russia’s all-out war and subsequent blockade of the Black Sea severely hampered the country’s ability to ship goods, do business, and obtain foreign currency.
In June 2022, the EU eliminated all remaining tariffs and quotas on imports from Ukraine to ease land transport and ensure stable revenues. But the special government has triggered a surge in Ukrainian grain production in neighboring countries, sparking protests from local farmers who say cheap grain is driving down prices and filling storage bins.
The conflict reached a boiling point in April 2023, when Poland, Hungary and Slovakia banned various agricultural products from Ukraine overnight. Romania and Bulgaria have warned they will soon follow suit.
Caught me by surprise, the committee fought backcondemned the ban as unacceptable, illegal and contrary to the bloc’s spirit of solidarity. Group of 12 countriesIn a joint letter, countries including Germany, France, the Netherlands, Belgium and Austria said the integrity of the single market was at risk.
The standoff continued for several months, with multiple attempts to resolve the situation through diplomacy and litigation at the World Trade Organization (WTO).
For now, Poland, Hungary and Slovakia have maintained their bans.
Given the explosive nature of this topic, the Committee announced in January The proposal would extend free trade measures until June 2025, but includes a major change in the form of “remedy measures” for disruptions in one or more member states.
The executive also proposed entirely new safeguards to curb the most “sensitive products” imported from Ukraine (chicken, eggs, sugar). If these imports increase above their 2022 and 2023 levels, an automatic emergency brake will be applied and pre-war tariffs will be applied.
After negotiations between the council and parliament, both sides agreed last week To enhance your text with three important adjustments:
advertisement- Oats, corn, groats and honey have been added to the list of “sensitive products”.
- The tariffs are expected to be introduced within 14 days instead of the 21st.
- The European Commission has pledged to “intensify” its surveillance of wheat and other cereals to detect instances of market disruption that may warrant “corrective action”.
However, the proposed amendments failed to meet the demands of Poland, France and their allies, adding wheat to the list of “sensitive items”, extending the reference period to 2021, and pre-war standards for imposing tariffs. tried to lower it.
As a result, the tentative agreement broke down on the day it was announced, raising concerns that the conflict would be prolonged.
Wednesday’s compromise extends the reference period to the second semester of 2021 and excludes wheat from the catalog of “sensitive products”, although the economic losses are likely to be even more severe for Ukrainian producers. .
One diplomat, speaking on condition of anonymity, said the talks were an attempt at “last possible mediation” and left no room for further maneuver. Another source spoke of a “very, very delicate balance”.
The deal still needs to be negotiated with Congress and approved by co-legislators, and the possibility of new last-minute surprises cannot be ruled out.
advertisementThis article has been updated with more information about the transaction.
[ad_2]
Source link
