European Commission is preparing to impose import duties on Ukrainian eggs and sugar

The European Commission may impose import duties on Ukrainian eggs in the coming days, as Ukraine has exhausted its quotas for the supply of this product to the EU.

This was reported by Euronews.

As egg imports from Ukraine have reached the limit for supplies to the European Union, the European Commission will reintroduce import duties on these Ukrainian products within the next two weeks.

According to trade experts familiar with the matter, sugar imports are also in the focus of the EU executive’s attention.

The publication writes that the new free trade scheme, which came into force on June 6, includes an automatic safeguard mechanism. Its purpose is to protect certain “sensitive” European sectors, such as eggs, poultry, sugar, corn, hulled grains, oats and honey, from a sharp increase in imports as a result of the abolition of quotas and customs duties.

At the practical level, the EC has the right to apply the so-called “emergency braking” and reintroduce tariff quotas on imports of these goods from Ukraine if their volumes exceed the arithmetic average of imports for the period from July 1, 2021, to December 31, 2023.

Thus, the safeguard mechanism allows the EU to temporarily reintroduce trade restrictions to prevent excessive import growth in certain “sensitive” market segments, while not completely blocking the free trade agreement.

As a reminder, on June 19, duties will be imposed on Ukrainian oats for export to the European Union, as Ukraine has exceeded its quota.

Sugar is “in the crosshairs”

As for sugar, its imports are also under close scrutiny by the EU executive. Two sources briefed on the matter pointed to sugar as a likely “candidate for control,” saying that imports of the commodity are already exceeding the emergency brake line.

“We cannot speculate on the pace of future imports,” said the Commission spokesperson, adding that the EU executive continues to monitor the relevant trigger levels.

Luc Vernet of the FarmEurope think tank previously told Euronews that some of the Ukrainian sugar entering the EU may have the status of domestic processing – imported for re-export – which could affect the Commission’s assessment.

If the trigger level for sugar is reached, tariffs will be reactivated within a maximum of 14 days.

This issue is being closely monitored by the EU association representing European sugar consumers in the food and beverage sector (CIUS) and it is concerned about limiting the volume of imports of the main commodity for processing their products.

“We are afraid that in the coming years there will not be enough sugar to meet the demand of the EU market,” said the CIUS spokesman.

Ukraine recently set a record for sugar exports at 108,000 tons in May, as sugar beet began to be seen as a good diversification option for the country’s grain producers. According to the National Association of Sugar Producers of Ukraine (Ukrtsukor), Kyiv exports 65% of its sugar to the EU.

Tags: Ukraine, EU, sugar, restrictions, eggs