20 May 2022 14:18

Cancellation of import duties to boost Ukrainian agricultural exports - ministry

KYIV. May 20 (Interfax-Ukraine) - The yearlong cancellation of duties on all Ukrainian exports to the European Union will promote a rapid growth in agricultural supplies, considering that the majority of European restrictions and quotas have applied to agricultural produce.

"The duty suspension is a very strong signal towards a rapid increase in exports, primarily, the delivery of products with added value. That will make our products more competitive, considering that certain duties increased product prices by 50% or even doubled them. Obviously, this is a historic chance for Ukrainian agriculture," the Ukrainian Agrarian Policy and Food Ministry quoted First Deputy Minister Taras Vysotsky as saying.

In his words, most restrictions and quotas in Ukraine-EU trade applied to agricultural produce and foods.

"The former honey quota was spent within two weeks, and the quotas on poultry, tomato paste, apple juice and oilseeds ran out within several months. The quota for dairy products was much smaller than our production capacities," Vysotsky said.

On May 19, the European Parliament approved the cancellation of EU import duties on all Ukrainian exports for one year to support the Ukrainian economy. The EU resolution fully suspended the import duty on industrial goods, fruit and vegetable entry prices, and anti-dumping duties.

The Ukraine-EU free trade area agreement took effect in 2016.

The agreement will gradually cancel or exempt certain tariffs and quotas for certain categories of goods. The EU proposed in late April 2022 that these restrictions be temporarily lifted to support the Ukrainian economy.

In 2021, Ukraine fully spent nine quotas on duty-free exports to the European Union: the quotas applied to honey, cereals, flour, starch, processed starch, processed tomatoes, grape and apple juice, eggs, poultry (parts) and processed grain products.