Ukrainian Agribusiness ask EU Community for extension the preferential trade conditions between Ukraine and the EU
Association "Ukrainian Agribusiness Club" together with member organizations of the Ukrainian National Agrarian Forum (UNAF) appeals to the EU Committee on Agriculture and Rural Development, EU Agriculture and Fisheries Council and Copa-Cogeca members organizations with a request to extend the preferential trade conditions between Ukraine and the EU at least till the end of 2024.
The current tense geopolitical situation harms the world market of agri-food products and calls into question the guarantee of food security worldwide. Limiting exports by blocking ports and disrupting Ukrainian food supply chains is part of russia's hybrid war.
One of the most safe corridor for exporting agricultural products has become the borders with EU countries, including for transit purposes. The recreation of new transit logistics routes was one of the critical factors in the significant increase in agricultural exports to EU countries.
At the same time, it is necessary to consider that Ukrainian agricultural exports in 2022 were formed due to record agricultural production in 2021. However, the available economic facts and objective expectations testify to the inevitable decline of both the production and export potential of the agricultural sector of Ukraine already this year.
Recently the European agricultural producers' community became highly concerned about the increase in Ukrainian agro-export volumes. But during the war times, Ukrainian farmers do not aim to compete with European producers. In addition to losses from military operations, there is also an energy crisis in Ukraine. All its components increase the cost of Ukrainian agricultural products making them less competitive with European ones.
The provision of support from the EU and the introduction of a preferential trade regime are certainly tangible and vital for the agricultural sector of Ukraine. At the same time, appropriate measures in wartime conditions remain for the industry, mainly as a resuscitation tool. Stopping or limiting resuscitation measures in any form will accelerate the decline of the agricultural sector with all the adverse socio-economic consequences. And also may carry geopolitical risks.
Considering the above mentioned, ukrainian agribusiness are kindly asking to take into account the opinion of the leading agricultural associations of Ukraine when considering the question of preserving and extending the preferential trade conditions between Ukraine and the EU at least till the end of 2024, to prevent the deepening of the crisis in the agricultural sector of Ukraine and the deterioration of global food security.