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The EU signs the "tough" agreement for Ukrainian wheat

2024-03-28 11:18:22Kosova&Bota SHKRUAR NGA REDAKSIA VOX

 

The EU signs the "tough" agreement for Ukrainian wheat

The outcome of the negotiations represents a hardened position compared to any solidarity promised to the war-torn nation, whose agricultural exports provide a crucial revenue stream. The extension of the special regime will introduce a greater number of safeguards for products considered "sensitive": poultry, eggs, sugar, oats, corn, cereals and honey, which will be subject to tariffs if their flow exceeds past average volumes. three years.

The agreement will also make it easier for member states to implement "corrective measures" in the event of market disturbances, a vague term that opens the door to bans on a national basis. In total, it is estimated that the changes will make Kyiv lose around 330 million euros per year.

The strengthened provisions come amid protests by farmers across Europe, some of whom have accused their Ukrainian counterparts of unfair competition. Although opposition to low-cost Ukrainian imports initially came from neighboring countries in Eastern Europe, namely Poland, Hungary and Slovakia, it gradually spread to France, which moved from an expansive to a restrictive position in the debate.

Italy and Austria also shifted their position towards the Polish camp, further complicating the arithmetic. On the other side of the room, Germany, the Netherlands and the Baltic states, among others, resisted the austerity. The responsibility to break the deadlock fell on Belgium, the current holder of the Council's rotating presidency. Belgium presented a new compromise text on Wednesday morning, paving the way for approval later in the day.

"Ambassadors agreed on a new compromise to expand trade measures (ATM) for Ukraine, ensuring a balanced approach between support for Ukraine and protection of EU agricultural markets," the presidency announced on social media. He added that the text will be presented to the European Parliament for a "quick" resolution.

After negotiations between the Council and the Parliament, the two sides agreed last week to strengthen the text with three main changes:

Oats, corn, cereals and honey were added to the list of "sensitive products".

Fees will be charged in 14 days, instead of 21.

The Commission commits to "increase" the monitoring of wheat and other grains to detect cases of market disturbances, which may justify "corrective measures".

However, the amendments failed to meet the demands of Poland, France and their allies, who pushed to add wheat to the list of "sensitive products" and extend the reference period to 2021, thereby lowering the threshold for dropping tariffs. of the pre-war period. This caused the interim agreement to collapse on the same day it was announced, raising fears of a prolonged deadlock.

Wednesday's compromise excludes wheat from the catalog of "sensitive products" but extends the reference period to the second semester of 2021, adding 86 million euros to the 240 million euros provided for in the Commission's initial proposal. Speaking on condition of anonymity, one diplomat described the talks as the "last possible mediation" effort, leaving no further room for manoeuvre. Another source spoke of a "very, very delicate balance".

The deal still needs to be negotiated with Parliament and ratified by co-legislators, meaning a new last-minute surprise cannot be ruled out. If finally approved, the free trade extension will be the last. During a summit in Brussels last week, EU leaders tasked the Commission with "preparing a solution in the framework of the EU-Ukraine Association Agreement", in force since 2017.


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