MEPs reduce customs duties on imports from Ukraine

03.04.2014

On 3th of April, 2014 the European Parliament proposed to eliminate 98% of customs duties on iron, steel, farm produce and machinery exported from Ukraine. This unilateral measure allows stimulating the development of the economy of the country through monetary savings of manufacturers and exporters in the amount of € 487 million annually.

“European Parliament has supported Ukraine for many years. This is our chance to demonstrate our support in practice by helping Ukraine during its economic crisis in the face of the depletion of foreign exchange reserves and increased pressure from the Kremlin”, - claimed rapporteur Pawel Zalewski (EPP, PL).

94.7% tariffs on industrial goods imported into the European Union from Ukraine will be removed since May 2014. The customs for a part of industrial goods will be reduced. Also, 80% tariffs on Ukraine’s farm produce exports will be removed. However, the amount of such goods as cereals, pork, beef, poultry, and processed food will be reduced to protect interests of EU’s producers.

In exchange for it the EU demands not to raise custom duties customs duties on imports from the EU. Besides, imports from Ukraine should comply with EU rules. Also the EU reserves the right to reimpose tariffs if imports from Ukraine flood the EU market and harm the interests of the EU’s producers.

Based on: http://www.europarl.europa.eu/news/en/news-room/content/20140331IPR41177/html/MEPs-cut-customs-duties-on-imports-from-Ukraine

Expert’s opinion

Ukraine is a breadbasket of the Europe

In the last year while waiting for the signing of the Association Agreement between the EU and Ukraine, agricultural producers in Ukraine knew that all the grain wheat, corn, canola and other crops will be fully absorbed and assimilated by the EU market.

It is a pity that a powerful stuffing of grain to the EU market did not take place in autumn 2013, after the harvest.

But there is an opportunity to sell all the remains of technical grades and enter into contracts for the new crop.

If an escalation of the armed conflict between Russia and Ukraine does not happen, we can expect lower prices in the grain market and an increase of quotes of the Ukrainian farmers

Yaroslav Lomakin ( Managing partner of Honest & Bright” company)