- After aggression by Russia on Ukraine in February 2022 year EU trade with Ukraine was liberalized – quantitative quotas and VAT on wheat, thistle, sunflower and corn.
- The European Parliament extended the free trade until 5 June 2025 year, introducing one automatic protection mechanism and import quotas for particularly vulnerable agricultural products.
- Lukasz Ambroziak emphasizes, that unilateral preferences tariffs, have increased competition from the site of Ukrainian producers in the Polish market, but also in the EU market.
– Ukraine’s membership in the European Union should be considered on two levels. One of these is that, what is going now, a meaning Ukrainian goods have in principle free access to the EU market and Ukraine can export products agricultural andfood to European Union – says agency Newseria dr hab. Lukasz Ambroziak, prof. Institute Economics Agriculture and Food Economy – State Research Institute.
Process integration Ukraine
As adds expert, the current obligation extended the free trade until 5 June 2025 year, introducing one automatic protection and import quotas for particularly sensitive agricultural products.
We can therefore say, that now the process of integration of Ukraine into the unified European market is underway, while self membership will mean the acquisition of rights and obligations, which result from membership in the European Union. This refers to participation in different type instruments related to common agricultural policy, such as direct subsidies or different type funds, support for development of rural areas – indicates prof. Lukasz Ambroziak.
Free trade from Ukraine is a challenge for Poland agriculture
At the end of February 2022 Ukraine submitted an application for membership in the EU. Accession of Eastern neighbor of Poland is an opportunity to strengthen the position of European agriculture, for Poland however -which has shown to lift goals among others. on Ukrainian beans after Russian aggression – may mean some challenges.
– From June 2022 year, from when Union granted Ukraine unilateral preferences tariffs,
the competition from the sides of Ukrainian producers on the Polish market, but also on the EU market, explains the expert.
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Ukraine cope-with EU limits. EU is the largest market for Ukrainian agriculture
From data KOVR shows, that in 2023 the year recorded an increase in influences received from exports of agricultural and food products from Poland. His value reached a record 51.8 billion euros. KOVR considers, that the increase in the value of Polish agricultural-food exports in 2023 was less dynamic than in 2022, because of the recorded declines in the international food market, which transferred to lower transaction prices in foreign trade. No less important was also the liberalization of trade with Ukraine, which resulted in increased supply on the Union market of Ukrainian agricultural-food products, constituting competition on price for domestic products. Similarly as in previous years agricultural-food products were exported from Poland primarily to the market of the European Union. In 2023 year supplies to countries EU generated 38 billion euro, which means that the share of the EU market in food exports from Poland was 73 percent. Counting together with sales to Great Britain this is over 80 proc.
Interests of Polish producers depend on the situation in that market. This is also increased competition from the site of Ukrainian producers on the Union market may be harmful to Polish exporters, we have in the past such examples related to increased imports of poultry from Ukraine to the European Union – says prof. Lukasz Ambroziak.
From data KE it appears, that exports from Ukraine to EU amounted in 2023 year to 22.8 billion euros. The major export products under in value were cereals (21.9 percent of total exports), fats and oils animal or plant (9.2 percent.) or seeds ole (8.2 percent). In 2023 year Ukraine remained the third by magnitude source of EU imports of agricultural-food products under the source.values.
As recently informed on Facebook Taras Kaczka, Ukrainian Deputy Minister of Economy, the market EU takes almost 60 proc. exports from Ukraine. Despite turbulence in the agricultural sector and at borders exports to EU have increased by 1.34 billion dollars, that is about 5.9 proc EU is a key market for Ukrainian corn
(49.2 proc exports) or wheat (34 proc exports), among others. Through EU bonding by 51 proc. decreased supplies of
sugar to EU (303 t. t), but total exports of this sugar increased in the last
year by 45 proc. Trafficked to the EU also about 40 percent of exports of poultry meat valued about 390 million dollars,
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Moldova extended licensing imports from Ukraine by half year
– From research conducted at Institute Economics of Agriculture and Food Economy it appears, that in some groups of products this competition is already high, such as poultry meat, confectionery and bakery products, cigarettes, eggs or different type dairy products. Increased imports of these products in the EU market cause Polish producers, exporters have problems of selling their products in the EU market- says prof. Institute Economics Agriculture and Food Economy – State Research Institute.
Ukraine strong player in market
Poland Institute International Affairs indicates, that even now, despite war, Ukraine remains a competitive agricultural producer due to favorable soil and climatic conditions and focused export large farms with low production costs. although incorporating Ukrainian agricultural production into the EU market would strengthen the position of the EU in the world market, in some areas EU producers are structurally less competitive than Ukrainian ones, for example. Poland in the sector of cereals, plants of oils, sugar and meat of poultry. Therefore the future of agriculture in Poland in a large major depend on how it copes with different challenges, for example, climatic. The need is to be.Increasing competitiveness products while maintaining principles of sustainable development.
Lower prices of Ukrainian agricultural producers
– Ukrainian exporters and producers compete with lower prices of products on the EU market, similar to Polish producers. In ordertomeasureagainstthiscompetition,itis desirablethatPolishproducersdeveloptheproductionoffinished products,thatcancompetewithquality,notonlylowerprice.This meansweshouldinvestindevelopmentofnewproducts,moreinnovative.Thiscanbecombinedwithenvironmental protection,withproductsrelatedtosustainabledevelopment,introduceintoproductsanenvironmental aspect,tobedifferentiatedbyproductsfromthosecheaperUkrainian-stressesprof.LukaszAmbroziak.
Source: Newseria,opr.farmer.pl
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