Due to new trade agreements between Ukraine and the European Union, the export of Ukrainian agricultural products to Europe will sharply decline. At the same time, some products will be exempt from import duties. Kyiv is already seeking new markets outside Europe.
The European Union will introduce new tariff limits for the import of Ukrainian agricultural products at the end of this month. This marks the end of the temporary duty-free access that Ukraine has had since 2022. The measure aims to normalize trade but will significantly reduce Ukraine’s income from agri-exports.
According to economic researchers, exports to EU countries could drop by over one billion euros annually. Grain exports will be hit particularly hard. The expected losses will be partly offset as Ukraine tries to shift its trade to other regions outside Europe.
Although the new agreements with the EU impose restrictions, they also offer expanded access for some product groups. The European Union is raising import quotas for honey, sugar, eggs, and wheat among others. These changes will come into effect before the end of the month.
At the same time, Ukraine is expanding its trade with other countries. For instance, an agreement has been reached with Oman on the export of poultry products. Bahrain and Saudi Arabia had earlier become new export markets. These openings are intended to partly compensate for the loss of European revenue.
In Brussels, representatives of the EU and Ukraine recently reached an agreement on the agricultural part of the accession talks. Both parties aim to gradually better align legislation and regulations for agriculture. The EU pledged support for further reforms.
The talks in Brussels showed that collaboration has advanced significantly, but much remains to be done to bring Ukrainian agriculture up to EU standards. The reforms focus on digitalization, market rules, and government support for farmers.
Ukrainian farming organizations warn against too rapid changes. A sudden introduction of all European rules could particularly harm small and medium-sized agricultural businesses. They advocate for a transition period of ten to fifteen years so that agriculture can adapt gradually.
Ukraine expects to become a member of the European Union by 2035. Representatives from the agricultural sector say that a period of ten years is needed to fully adapt the economy and agriculture to European standards.
