Faced with protests from farmers, the new agreement contains a “security brake” on the import of some items, such as eggs and corn

The EU (European Union) announced on Monday (May 13, 2024) that it had renewed tax exemptions on the import of certain agricultural products from Ukraine for 1 year. The measures were implemented in mid-2022 and, with the new renewal, are valid until June 5, 2025.

Tax exemptions are the target of protests by farmers in the bloc. They charge actions to lower the prices of their products and block free trade agreements. According to farmers, the high cost of environmental requirements combined with competition with low-cost imports harm the profits of local producers.

In a note, the European Commission said that the terms approved in 2024 contain a “strengthened safeguard mechanism” what “takes into account the concerns of EU stakeholders”.

The body stated that it had considered the “significant increase in imports of some agricultural products from Ukraine to the EU in 2022 and 2023”. Therefore, the renewal agreement “allows rapid corrective action to be taken in the event of significant disruptions in the EU market or in the markets of 1 or more Member States”.

Among these measures is the interruption of the entry into the bloc of eggs, poultry, sugar, oats, corn, grains and honey from Ukraine.”if import volumes reach the annual average of registered imports from July 1, 2021 to December 31, 2023”.

The EU implemented so-called autonomous trade measures on products coming from Ukraine in June 2022, allowing all Ukrainian products to enter the EU tax-free. The measures were taken to assist the country after Russia’s invasion.

The renewal for another year, according to the European Commission, indicates that the European bloc is “once again fulfilling its commitment to support Ukraine for as long as necessary”. The agency stated that the agreement is “a lifeline to the economy“Ukrainian”through access to the EU market”.

Valdis Dombrovskis, Executive Vice-President and Commissioner for Trade at the European Commission stated that, “Thanks to revenues from Ukrainian exports to and through the EU, Ukraine will have more financial means to win this war and will be in a stronger position to recover from it”.

Source: https://www.poder360.com.br/europa-em-guerra/ue-prorroga-isencao-tributaria-a-produtos-da-ucrania-por-1-ano/

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