Ukrainian exporters have actively used tariff rate quotas (TRQs) on grains export to the European Union introduced by autonomous trade preferences (ATP). As of September, 25 grain TRQ was used by 99.8%, another words 1.6 million tons of Ukrainian grains were exported to the EU. This was reported by the association Ukrainian Agribusiness Club (UCAB).

Export companies used TRQ for corn in full size (400 thousand tons) by the end of July, for wheat TRQ was used by 100% (950 thousand tons) by the end of August. Barley TRQ is used almost by 100% (only 19.5 tons left) and oats – only by 1.1% (39.6 thousand tons were exported). It’s expected that barley quota will be filled in short period.

This year Ukraine will save positions on global grain market, because of great export volumes formation. According to data of the Ministry of Agricultural Policy and Food of Ukraine, gross harvest of wheat is at the level of 24.4 million tons and barley – 9.3 million tones. According to Ukrainian Agribusiness Club calculations, the export potential formed at the level of 9.8 million tons of wheat and 3.1 million tons of barley. As of September, 25, 4.2 thousand tons of corn has been harvested. UCAB expects gross harvest at the level of 25-27 million tones and 15.5-16.5 million tons of exports.

Use of other TRQs is not so active. Nowadays, the quotas for honey, grape and apple juices were also fully used, for barley groats or meal quota filled by 47.2% (3.3 thousand tons left), malt – 28.4% (5 thousand tons) and prepared tomatoes – 27.6% (7.2 thousand tons). Other groups of products do not even achieved 10-percsent level of TRQ use.

“The European Union has moved implementation of economic part of the Association Agreement on a year. This is a good signal for Ukrainian companies, because now they have additional year to orient on trade with the EU, using the FTA benefits. Nowadays some of them have doubts on further vector of foreign trade relations development, so they afraid to invest in modernization of production capacities and certification before such a strong signal, like official implementation of this agreement”, said Igor Ostapchuk, advisor on agriculture markets of UCAB.