Officially, the approved decision will be announced next month, but it is already known that Ukraine can supply tax-free grain to the EU. At the same time, some concessions will be made in the interests of Eastern European farmers.
Grain from Ukraine will continue to be imported into the EU tax-free for another year, despite protests from farmers neighboring Ukraine, such as Poland, Romania and Slovakia, whose interests are hurt by the emergence of cheap Ukrainian grain in national markets. year. Reported by The New York Times.
On Friday, April 28, at the meeting of EU ambassadors, it was decided to extend duty-free exports. At the same time, EU representatives made concessions for the interests of other Eastern European countries. The Swedish representative, chairing the meeting in Brussels, announced that customs duty-free exports will be extended. Officially, the approved decision will be announced next month.
The removal of tariffs was initially seen as a last resort to create cheap land routes, facilitate the supply of Ukrainian grain, and ultimately alleviate the global food crisis partly caused by Russia’s blockade of Black Sea ports.
The blockade of ports is depriving Ukraine of income amid the ongoing full-scale invasion by Russian troops.
In this context, the UN, through Turkey’s mediation, agreed on a grain corridor through which grain from Odessa and other ports could be transported under close surveillance. However, this mechanism needs to be renewed every three months. This week, Russia said it might withdraw from the grain deal.
Cancellation of taxes on Ukrainian grain
The abolition of duties on Ukrainian grain made it possible to deliver by land to neighboring countries such as Poland and Hungary. Goodwill guided the authors of the initiative, but it turned out that this was not in the interests of other European farmers.
Tons of much cheaper Ukrainian grain overflowed from neighboring markets. Grain from Ukraine instead of further shipping has accumulated in warehouses in neighboring EU countries, lowering prices.
Recall that the day before, on April 27, the NBU reported losses in the EU due to the ban on Ukrainian agricultural products – about $ 200 million.
It was previously reported that 130 percent tax would be applied to imports of agricultural products in Turkey. There is a customs regime between Ukraine and Turkey that allows subsequent sales to third countries.
Source: Focus
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