The European Union is preparing to apply much higher tariffs on imports from Ukraine within weeks, hitting Kyiv’s economy at a crucial time in its fight against Russia, the Financial Times (FT) reported on Wednesday, citing diplomats.
The proposal, recently sent to EU member states, would drastically cut tariff-free quotas for agricultural products – a lifeline for Ukraine’s farmers and budget, the report by FT said.
The move came after Poland led a push to protect the bloc’s farmers, according to diplomats.
The EU has an existing free trade deal with Ukraine, but went further in the wake of Moscow’s 2022 invasion and temporarily suspended remaining duties. According to the report, these arrangements lapse on June 6, and the EU is planning to replace them with “transitional measures” while the two sides update their overall trade agreement.
When first established in 2022, the tariff-free arrangement applied to Ukraine’s poultry, wheat and sugar, much of which was passing through EU countries en route to Africa and Asia. But farmers and politicians in Poland, France and elsewhere soon blamed Ukrainian exports for driving down domestic prices.
A commission spokesperson confirmed to the FT that the postwar arrangements would not be renewed “because we are currently working on the review” of the EU-Ukraine free trade agreement. “The commission is also looking into possible transitional measures in case the negotiations are not finalised and applied by June 6,” the spokesperson added.
