27 Aug 2024 15:46

Hungary to keep import ban on Ukrainian agriculture produce, but will permit its transit

MOSCOW. Aug 27 (Interfax) - Hungary will maintain its ban on the imports of Ukrainian agricultural produce, but will permit its transit and will try to persuade the European Union to draw up rules that will take Hungarian farmers' interests into account, Hungarian Agriculture Minister Istvan Nagy said at a meeting with Ukrainian Deputy Economy Minister and Kiev's Trade Representative Taras Kachka in Budapest on Monday.

"Hungary is aware that the uninterrupted nature of agricultural exports is important to Ukraine, because it is one of the largest sources of budget revenue. However, Budapest is keeping the import ban on Ukrainian agricultural products in the interests of Hungarian farmers. At the same time, transport is still allowed. Consequently, Ukrainian products may reach the recipient markets not only by sea but also overland," Ukrainian media quoted Nagy as saying in a statement circulated by the Hungarian Agriculture Ministry's press service.

The Autonomous Trade Measures adopted by Brussels will be in effect until June 5, 2025, he said. Hungary is interested in the EU developing rules that will heed the interests of Hungarian farmers, he said.

Ukrainian media also cited Kachka as saying on social media that Ukraine and the European Union should take steps over the next 9-10 months to determine parameters for their trade for the period up to Ukraine's accession to the EU. The most sensitive issue is agricultural produce. Hungary's position will be key in this issue given its current EU presidency, as well as because Hungary maintains certain restrictions on Ukrainian agricultural exports.

"The conversation with Nagy was substantive and constructive. We understand how many efforts will have to be made to achieve the result," Kachka said.

As previously reported, Poland, which will take over the EU presidency from Hungary in the first half of 2025, plans to continue discussions on and the implementation of the EU's green policy, amend the EU's common agricultural policy and create conditions for Ukraine's future membership in the EU.

Polish Agriculture Minister Czeslaw Siekierski, for his part, said that Ukraine has vast agricultural production potential and is a large agricultural exporter. Therefore, it is necessary to amend the EU's common agricultural policy and adopt rules that would help keep individual EU agricultural markets stable.

On May 13, 2024, the Council of the European Union decided to extend temporary measures liberalizing trade with Ukraine for another year until June 5, 2025. The EU, however, included an "emergency brake" for imports of particularly sensitive food products from Ukraine, specifically sugar, eggs, poultry, oats, corn, groats and honey. This emergency brake triggers restrictive measures if imports of these products in 2024 exceed the average quantities imported in the second half of 2021 and in the course of 2022 and 2023. Similar measures may be triggered in 2025 if imports from Ukraine in the period from January 1 to June 5, 2025 exceed 5/12 of the quota set for 2024.

Article 4(7) of the Regulation on Autonomous Trade Measures applicable to Ukrainian products under the EU-Ukraine Association Agreement permits Ukrainian duty-free exports to the EU market in the amount of 57,101 tonnes of poultry meat, 9,662 tonnes of eggs, 109,439 tonnes of sugar, 18,507 tonnes of honey, 4,648 tonnes of corn, 1,017 tonnes of oat, and 8,603 tonnes of groats between June 6, 2024 and June 5, 2025.

As previously reported, the European Commission imposed quotas on imports of Ukrainian eggs and sugar from June 2, 2024 to June 5, 2025. The new quota was set at 9,662 tonnes of eggs and 109,440 tonnes of sugar. In addition, quotas on Ukrainian honey imports to the EU market were reinstated on August 21. A new tariff quota will be introduced from January 1, 2025 to June 5, 2025, corresponding to 5/12 of the threshold that triggers the emergency brake. For honey, the new quota will be set at 18,507 tonnes.